This paper identifies and analyses the fundamental structural shocks that have explained the short run fluctuations of the Venezuelan economy in its recent history. For this purpose, we estimate a dynamic factor model (GDFM) with a panel of 115 variables and evaluate the effects of a monetary...

It has been widely believed that Mexico’s rapid economic growth during the 1934-1956 period was only possible through an expansionary economic policy financed by inflationary means. Hence its contrast with the Stabilizing Development policy of the 1960’s, considered the golden age of rapid...

In this model, monetary policy follows an inflation targeting scheme, using the interbank interest rate as the instrument of policy, while the money supply remains endogenous. On the other hand, a limit for the fiscal deficit as a percentage of GDP is set as the rule for fiscal policy, public...

The tax system combining a flat tax rate with an exempt minimum income has been largely debated in recent years. Detractors argue that tax systems with these characteristics are less progressive and, hence, they tend to lower the degree of redistribution. In contrast, supporters brandish its...

The AK endogenous growth model with elastic labor supply and useful government expenditures of Turnovsky (2000) is specially calibrated for the Mexican economy in order to perform a series of fiscal reform exercises. Available taxes include lump-sum, consumption and factor income taxes. For all...

This paper reviews the social policies implemented in Chile after the return to democracy in 1990. Social policies during this period are characterized by their contribution to reduce poverty in half and by a significant increase in public resources to fund the social programmes. At the same...

This study wants to show the medium and short run consequences of diminishing Public Deficit in the Spanish Economy. Precisely, we show the effects from diminishing by one percent the Public Deficit over the Spanish national income, on the production levels of 16 economic sectors, the welfare...