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    Santiago de Chile: Universidad de Chile, Departamento de Economía
    Publication Date: 2019-03-22
    Description: This paper looks for empirical evidence to show if a very interventionist government stimulates or not private investment in Latin America. Using the same model as Caballero-Urdiales y López-Gallardo (2012), we extend their analysis from five Latin-American countries to all Latin America. The results from our estimated elasticities show evidence in support of three hypothesis: (1) that tax burden (taxes on income and consumption) has significant effects on privateinvestment; (2) that public investment has a crowding out effect with private investment; (3) and that in order to stimulate private investment, the government should have very little intervention.
    Keywords: F21 ; H24 ; H25 ; H54 ; ddc:330 ; Private investment ; gross domestic produc ; public investment ; income tax ; value added tax
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: Spanish
    Type: doc-type:article
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