Dealing with the dutch disease : fiscal rules and macro-prudential policies

Autores
García Cicco, Javier; Kawamura, Enrique
Año de publicación
2014
Idioma
inglés
Tipo de recurso
documento de trabajo
Estado
versión publicada
Descripción
Fil: García-Cicco, Javier. Pontificia Universidad Católica Argentina. Facultad de Ciencias Económicas. Escuela de Economía Francisco Valsecchi; Argentina
Fil: Kawamura, Enrique. Universidad de San Andrés; Argentina
Abstract: We evaluate from a welfare perspective three policy alternatives frequently proposed to deal with Dutch-disease problems originated from cyclical movements in commodity prices. Namely, fiscal rules for government expenditures, capital controls, and taxes to domestic lending. To this end, we develop a DSGE model of a small open economy with a sectoral decomposition that features three distinctive characteristics: financial frictions, a learning-by-doing externality in the industrial sector, and a fraction of households being non-Ricardian (credit constrained). The first two features induce inefficient relocations after commodity shocks, while the later is relevant to study the role of fiscal rules. We calibrate the model using Chilean data, applying an impulse-response-matching approach. For each of the policy tools, we analyze optimal simple rules from a welfare (Ramsey) perspective, describing how different households rank the several policy alternatives, and studying how each of the models features shape the optimal policy design. A general conclusion of the analysis is that the included Dutch-disease inefficiencies are of limited quantitatively relevance in analyzing the desirability of these policies from a welfare perspective
Fuente
Documento de Trabajo nº 49, 2014
Materia
POLITICA FISCAL
MACROECONOMIA
POLITICA ECONOMICA
GASTO PUBLICO
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-sa/4.0/
Repositorio
Repositorio Institucional (UCA)
Institución
Pontificia Universidad Católica Argentina
OAI Identificador
oai:ucacris:123456789/2229

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oai_identifier_str oai:ucacris:123456789/2229
network_acronym_str RIUCA
repository_id_str 2585
network_name_str Repositorio Institucional (UCA)
spelling Dealing with the dutch disease : fiscal rules and macro-prudential policiesGarcía Cicco, JavierKawamura, EnriquePOLITICA FISCALMACROECONOMIAPOLITICA ECONOMICAGASTO PUBLICOFil: García-Cicco, Javier. Pontificia Universidad Católica Argentina. Facultad de Ciencias Económicas. Escuela de Economía Francisco Valsecchi; ArgentinaFil: Kawamura, Enrique. Universidad de San Andrés; ArgentinaAbstract: We evaluate from a welfare perspective three policy alternatives frequently proposed to deal with Dutch-disease problems originated from cyclical movements in commodity prices. Namely, fiscal rules for government expenditures, capital controls, and taxes to domestic lending. To this end, we develop a DSGE model of a small open economy with a sectoral decomposition that features three distinctive characteristics: financial frictions, a learning-by-doing externality in the industrial sector, and a fraction of households being non-Ricardian (credit constrained). The first two features induce inefficient relocations after commodity shocks, while the later is relevant to study the role of fiscal rules. We calibrate the model using Chilean data, applying an impulse-response-matching approach. For each of the policy tools, we analyze optimal simple rules from a welfare (Ramsey) perspective, describing how different households rank the several policy alternatives, and studying how each of the models features shape the optimal policy design. A general conclusion of the analysis is that the included Dutch-disease inefficiencies are of limited quantitatively relevance in analyzing the desirability of these policies from a welfare perspectiveUniversidad Católica Argentina. Facultad de Ciencias Económicas. Escuela de Economía "Francisco Valsecchi"Universidad Católica Argentina. Facultad de Ciencias Económicas. Escuela de Economía "Francisco Valsecchi"2014info:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_8042info:ar-repo/semantics/documentoDeTrabajoapplication/pdfhttps://repositorio.uca.edu.ar/handle/123456789/2229García Cicco, J., Kawamura, E. (2014, diciembre). Dealing with the dutch disease : fiscal rules and macro-prudential Documento de trabajo No. 49 de la Escuela de Economía “Francisco Valsecchi”. Facultad de Ciencias Económicas. Universidad Católica Argentina. Disponible en: https://repositorio.uca.edu.ar/handle/123456789/2229Documento de Trabajo nº 49, 2014reponame:Repositorio Institucional (UCA)instname:Pontificia Universidad Católica Argentinaengenginfo:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/4.0/2025-07-03T10:55:27Zoai:ucacris:123456789/2229instacron:UCAInstitucionalhttps://repositorio.uca.edu.ar/Universidad privadaNo correspondehttps://repositorio.uca.edu.ar/oaiclaudia_fernandez@uca.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:25852025-07-03 10:55:27.465Repositorio Institucional (UCA) - Pontificia Universidad Católica Argentinafalse
dc.title.none.fl_str_mv Dealing with the dutch disease : fiscal rules and macro-prudential policies
title Dealing with the dutch disease : fiscal rules and macro-prudential policies
spellingShingle Dealing with the dutch disease : fiscal rules and macro-prudential policies
García Cicco, Javier
POLITICA FISCAL
MACROECONOMIA
POLITICA ECONOMICA
GASTO PUBLICO
title_short Dealing with the dutch disease : fiscal rules and macro-prudential policies
title_full Dealing with the dutch disease : fiscal rules and macro-prudential policies
title_fullStr Dealing with the dutch disease : fiscal rules and macro-prudential policies
title_full_unstemmed Dealing with the dutch disease : fiscal rules and macro-prudential policies
title_sort Dealing with the dutch disease : fiscal rules and macro-prudential policies
dc.creator.none.fl_str_mv García Cicco, Javier
Kawamura, Enrique
author García Cicco, Javier
author_facet García Cicco, Javier
Kawamura, Enrique
author_role author
author2 Kawamura, Enrique
author2_role author
dc.contributor.none.fl_str_mv Universidad Católica Argentina. Facultad de Ciencias Económicas. Escuela de Economía "Francisco Valsecchi"
dc.subject.none.fl_str_mv POLITICA FISCAL
MACROECONOMIA
POLITICA ECONOMICA
GASTO PUBLICO
topic POLITICA FISCAL
MACROECONOMIA
POLITICA ECONOMICA
GASTO PUBLICO
dc.description.none.fl_txt_mv Fil: García-Cicco, Javier. Pontificia Universidad Católica Argentina. Facultad de Ciencias Económicas. Escuela de Economía Francisco Valsecchi; Argentina
Fil: Kawamura, Enrique. Universidad de San Andrés; Argentina
Abstract: We evaluate from a welfare perspective three policy alternatives frequently proposed to deal with Dutch-disease problems originated from cyclical movements in commodity prices. Namely, fiscal rules for government expenditures, capital controls, and taxes to domestic lending. To this end, we develop a DSGE model of a small open economy with a sectoral decomposition that features three distinctive characteristics: financial frictions, a learning-by-doing externality in the industrial sector, and a fraction of households being non-Ricardian (credit constrained). The first two features induce inefficient relocations after commodity shocks, while the later is relevant to study the role of fiscal rules. We calibrate the model using Chilean data, applying an impulse-response-matching approach. For each of the policy tools, we analyze optimal simple rules from a welfare (Ramsey) perspective, describing how different households rank the several policy alternatives, and studying how each of the models features shape the optimal policy design. A general conclusion of the analysis is that the included Dutch-disease inefficiencies are of limited quantitatively relevance in analyzing the desirability of these policies from a welfare perspective
description Fil: García-Cicco, Javier. Pontificia Universidad Católica Argentina. Facultad de Ciencias Económicas. Escuela de Economía Francisco Valsecchi; Argentina
publishDate 2014
dc.date.none.fl_str_mv 2014
dc.type.none.fl_str_mv info:eu-repo/semantics/workingPaper
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_8042
info:ar-repo/semantics/documentoDeTrabajo
format workingPaper
status_str publishedVersion
dc.identifier.none.fl_str_mv https://repositorio.uca.edu.ar/handle/123456789/2229
García Cicco, J., Kawamura, E. (2014, diciembre). Dealing with the dutch disease : fiscal rules and macro-prudential Documento de trabajo No. 49 de la Escuela de Economía “Francisco Valsecchi”. Facultad de Ciencias Económicas. Universidad Católica Argentina. Disponible en: https://repositorio.uca.edu.ar/handle/123456789/2229
url https://repositorio.uca.edu.ar/handle/123456789/2229
identifier_str_mv García Cicco, J., Kawamura, E. (2014, diciembre). Dealing with the dutch disease : fiscal rules and macro-prudential Documento de trabajo No. 49 de la Escuela de Economía “Francisco Valsecchi”. Facultad de Ciencias Económicas. Universidad Católica Argentina. Disponible en: https://repositorio.uca.edu.ar/handle/123456789/2229
dc.language.none.fl_str_mv eng
eng
language eng
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-sa/4.0/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/4.0/
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidad Católica Argentina. Facultad de Ciencias Económicas. Escuela de Economía "Francisco Valsecchi"
publisher.none.fl_str_mv Universidad Católica Argentina. Facultad de Ciencias Económicas. Escuela de Economía "Francisco Valsecchi"
dc.source.none.fl_str_mv Documento de Trabajo nº 49, 2014
reponame:Repositorio Institucional (UCA)
instname:Pontificia Universidad Católica Argentina
reponame_str Repositorio Institucional (UCA)
collection Repositorio Institucional (UCA)
instname_str Pontificia Universidad Católica Argentina
repository.name.fl_str_mv Repositorio Institucional (UCA) - Pontificia Universidad Católica Argentina
repository.mail.fl_str_mv claudia_fernandez@uca.edu.ar
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score 13.13397