Structural Economic Model for Ecuador: a Dollar-ized and Oil-ized Economy

Elosegui, Pedro and Grosman, Nicolas (2014): Structural Economic Model for Ecuador: a Dollar-ized and Oil-ized Economy.

Abstract

The paper develops a Structural Model with the main macroeconomic features of the Ecuadorian economy. It models the main transmission channels of a small open and dollarized economy, highly dependent on oil production and foreign remittances. It is estimated by Bayesian methods for the period 2001-2010. The framework highlights the main risks affecting the macroeconomic performance, including the importance of international shocks. It also underscores the importance of the fiscal policies and the independent and significant role of the oil value added in the domestic economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: New Keynesian model, Bayesian methods, Oil Value Added, Fiscal policy
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

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