Efectos Macroeconómicos de la Política Fiscal en Ecuador 1993-2009

Fiscal policy is particularly relevant in dollarized economies. For the case of Ecuador, we analyze the effects of taxes and public spending on the overall performance of the economy for the period 1993-2009. To do this, we use a structural autoregressive vector model (SVAR) incorporating the stylized facts of Ecuador estimated on Gachet et al. (2010). The main results are: i) the taxes have only temporary effects on the ecuadorian economy, ii) the increase in indirect taxes affect negatively on imports, exports and GDP, iii) the increase in direct taxes has a positive effect on exports, vi) a positive shock of government consumption has an effect on taxes and investment, v) fiscal policy instruments have a high interrelation between them