Paper Title
Evaluation of the Effects of Fiscal Policy in Ecuador using Structural Vector Autoregressions

This paper estimates the macroeconomic effects of fiscal policy and oil revenues for Ecuador using structural vector autoregression techniques. We characterize the effects of taxes, government consumption, government investment, and oil revenues. The results show that an expansionary shock to government investment increases output in a similar amount than a reduction in taxes, but lower than the effect of a shock to oil revenues of the same magnitude. The Ecuadorian economy evidences a high level of pass-through from oil revenue shocks, which makes it vulnerable to oil price fluctuations.