821
Views
3
CrossRef citations to date
0
Altmetric
Original Articles

Fiscal sustainability and dollarization: the case of Ecuador

&

References

  • Aggarwal, V. K. 1996. Debt Games: Strategic Interaction in International Debt Rescheduling. Cambridge: Cambridge University Press.
  • Alesina, A., and R. J. Barro. 2001. “Dollarization.” The American Economic Review 91: 381–385. doi:10.1257/aer.91.2.381.
  • Almeida, M. D., V. Gallardo, and A. Tomaselli. 2006. Gobernabilidad Fiscal En Ecuador. ECLAC Serie No 57. Santiago de Chile: United Nations Press.
  • Alvarado, C., A. Izquierdo, and U. Panizza. 2004. Fiscal Sustainability in Emerging Market Countries with an Application to Ecuador. Working Paper No. 511. Washington, DC: Inter-American Development Bank, Research Department.
  • Barnhill, T., and G. Kopits. 2003. Assessing Fiscal Sustainability under Uncertainty. International Monetary Fund Working Paper 03/79. Washington, DC: International Monetary Fund.
  • Barro, R. J. 1979. “On the Determination of the Public Debt.” Journal of Political Economy 87: 940–947. doi:10.1086/jpe.1979.87.issue-5.
  • Barro, R. J. 1986. “U.S. Deficits since World War I.” The Scandinavian Journal of Economics 88: 195–222. doi:10.2307/3440285.
  • Berg, A., and E. Borensztein. 2000. The Pros and Cons of Full Dollarization. International Monetary Fund Working Paper Working Paper 00/50. Washington, DC: International Monetary Fund.
  • Bogetic, Z., K. Smits, N. Budina, and S. Van Wijnbergen. 2010. Long-Term Fiscal Risks and Sustainability in an Oil-Rich Country. The Case of Russia. Policy Research Working Paper WPS5240. Washington, DC: The World Bank. Europe and Central Asia Region. Poverty Reduction & Economic Management Sector Department.
  • Bohn, H. 1998. “The Behavior of U. S. Public Debt and Deficits.” The Quarterly Journal of Economics 113: 949–963. doi:10.1162/003355398555793.
  • Bohn, H. 2005. The Sustainability of Fiscal Policy in the United States. CESifo Working Papers No. 1446. Munich: CESifo Group.
  • Bohn, H. 2007. “Are Stationarity and Cointegration Restrictions Really Necessary for the Intertemporal Budget Constraint?” Journal of Monetary Economics 54: 1837–1847. doi:10.1016/j.jmoneco.2006.12.012.
  • Calvo, G. A., and C. M. Reinhart. 2002. “Fear of Floating.” The Quarterly Journal of Economics 117: 379–408. doi:10.1162/003355302753650274.
  • Chang, R. 2000. “Dollarization: A Scorecard.” Economic Review, Federal Reserve Bank of Atlanta 92: 1–11.
  • Cheung, Y.-W., and K. S. Lai. 1993. “Finite Sample of Johansen’s Likelihood Ratio Tests for Cointegration.” Oxford Bulletin of Economics and Statistics 55: 313–328. doi:10.1111/j.1468-0084.1993.mp55003003.x.
  • Collignon, S. 2012. “Fiscal Policy Rules and the Sustainability of Public Debt in Europe.” International Economic Review 53: 539–567. doi:10.1111/iere.2012.53.issue-2.
  • Cueva, S. 2008. Ecuador: Fiscal Stabilization Funds and Prospects. Working Paper CSI-110. EC-P1059. Washington, DC: Inter-American Development Bank. Country Department Andean Group (CAN).
  • De Nicoló, G., P. Honohan, and A. Ize. 2005. “Dollarization of Bank Deposits: Causes and Consequences.” Journal of Banking & Finance 29: 1697–1727. doi:10.1016/j.jbankfin.2004.06.033.
  • Doane, D. P., and L. E. Seward. 2011. “Measuring Skewness: A Forgotten Statistic?” Journal of Statistics Education 19: 1–18.
  • Duttagupta, R., and G. Tolosa. 2006. Fiscal Discipline and Exchange Rate Regimen: Evidence from the Caribbean. International Monetary Fund Working Paper No. 06/119. Washington, DC: International Monetary Fund.
  • Eaton, J., and M. Gersovitz. 1981. “Debt with Potential Repudiation: Theoretical and Empirical Analysis.” The Review of Economic Studies 48: 289–309. doi:10.2307/2296886.
  • ECLAC. 2006. Preliminary Overview of the Economies of Latin America and the Caribbean. Santiago de Chile: Economic Commission for Latin America and the Caribbean, United Nations Press.
  • Ecuador Central Bank. 2013. Estadísticas Macroeconómicas. Presentación Estructural. Quito: Ecuador Central Bank.
  • Edwards, S. 1989. “The Debt Crisis and Economic Adjustment in Latin America.” Latin American Research Review 24: 172–186.
  • Edwards, S. 2008. “Globalization, Growth and Crises: The View from Latin America.” The Australian Economic Review 41: 123–140.
  • El Anshasy, A. A., and M. D. Bradley. 2012. “Oil Prices and the Fiscal Policy Response in Oil-Exporting Countries.” Journal of Policy Modeling 34: 605–620. doi:10.1016/j.jpolmod.2011.08.021.
  • Engle, R. F., and C. W. J. Granger. 1987. “Cointegration and Error Correction: Representation, Estimation, and Testing.” Econometrica 55: 251–276. doi:10.2307/1913236.
  • Favero, C., and F. Giavazzi. 2007. Debt and the Effects of Fiscal Policy. National Bureau of Economic Research Working Papers No. 12822. Cambridge, MA: NBER.
  • Favero, C., F. Giavazzi, and J. Perego. 2011. “Country Heterogeneity and the International Evidence on the Effects of Fiscal Policy.” International Monetary Fund Economic Review 59: 652–682.
  • Federal Deposit Insurance Corporation, Division of Research and Statistics. 1997. History of the Eighties: Lessons for the Future. Washington, DC: Federal Deposit Insurance Corporation.
  • Fincke, B., and A. Greiner. 2012. “How to Assess Debt Sustainability? Some Theory and Empirical Evidence for Selected Euro Area Countries.” Applied Economics 44: 3717–3724. doi:10.1080/00036846.2011.581213.
  • Goldfajn, I., and G. Olivares. 2000. Is Adopting Full Dollarization the Solution? A Look at the Evidence. Working Paper No. 146. Rio de Janeiro: Pontifícia Universidade Católica do Rio de Janeiro.
  • Grandes, M., and H. Reisen. 2003. “Hard Peg versus Soft Float: A Tale of Two Latin-American Countries.” Revue Économique 54: 1059–1090. doi:10.2307/3503216.
  • Hamilton, J., and M. Flavin. 1986. “On the Limitations of Government Borrowing: A Framework for Empirical Testing.” American Economic Review 76: 808–819.
  • Hendry, D. F. 1995. Dynamic Econometrics. Oxford: Oxford University Press.
  • Hoover, K., S. Johansen, and K. Juselius. 2008. “Allowing the Data to Speak Freely: The Macroeconometrics of the Cointegrated Vector Autoregression.” American Economic Review 98: 251–255. doi:10.1257/aer.98.2.251.
  • Jacome, L. 2004. The Late 1990s Financial Crisis in Ecuador: Institutional Weaknesses, Fiscal Rigidities, and Financial Dollarization at Work. International Monetary Fund Working Papers No. 04/12. Washington, DC: International Monetary Fund.
  • Jafarov, E., and D. Leigh. 2007. Alternative Fiscal Rules for Norway. International Monetary Fund Working Papers No. 07/241. Washington, DC: International Monetary Fund.
  • Jahjah, S., and P. Montiel. 2003. Exchange Rate Policy and Debt Crises in Emerging Economies. International Monetary Fund Working Papers No. 03/60. Washington, DC: International Monetary Fund.
  • Johansen, S. 1996. Likelihood-Based Inference in Cointegrated Vector Autoregressive Models. 2nd ed. Advanced Texts in Econometrics. Oxford: Oxford University Press.
  • Johansen, S., and K. Juselius. 1990. “Maximum Likelihood Estimation and Inference on Cointegration - with Applications to the Demand for Money.” Oxford Bulletin of Economics and Statistics 52: 169–210. doi:10.1111/obes.1990.52.issue-2.
  • Johansen, S., and K. Juselius. 1992. “Testing Structural Hypotheses in a Multivariate Cointegration Analysis of the PPP and the UIP for UK.” Journal of Econometrics 53: 211–244. doi:10.1016/0304-4076(92)90086-7.
  • Juselius, K. 2006. The Cointegrated VAR Model: Methodology and Applications. 1st ed. New York: Oxford University Press.
  • Kia, A. 2008. “Fiscal Sustainability in Emerging Countries: Evidence from Iran and Turkey.” Journal of Policy Modeling 30: 957–972. doi:10.1016/j.jpolmod.2008.01.004.
  • Konstantinou, P. T. 2004. “Balancing the Budget through Revenue or Spending Adjustments? the Case of Greece.” Journal of Development 81: 81–105.
  • Levy-Yeyati, E., and F. Sturzenegger. 2003. “To Float or to Fix.” American Economic Review 93: 173–1193.
  • Lütkepohl, H. 2004. Univariate Time Series Analysis in Applied Time Series Econometrics. 1st ed. edited by Lütkepohl, H. and M. Krätzig, 8–85. Cambridge: Cambridge University Press.
  • Marí Del Cristo, M. L., and M. Gómez-Puig. 2013. “Pass-Through in Dollarized Countries: Should Ecuador Abandon the US Dollar?” Applied Economics 45: 4395–4411. doi:10.1080/00036846.2013.786166.
  • Martins, P. M. G. 2010. Fiscal Dynamics in Ethiopia: The Cointegrated VAR Model with Quarterly Data. CREDIT Research Paper No. 10/05. Nottingham: Centre for Research in Economic Development and International Trade, University of Nottingham.
  • Medas, P., and D. Zakharova. 2009. A Primer on Fiscal Analysis in Oil-Producing Countries. International Monetary Fund Working Papers No. 09/56. Washington, DC: International Monetary Fund.
  • Mejía, A., V. Albornoz, and M. Araujo. 2006. The Political Economy of the Budget Process: The Case of Ecuador. Country Studies Series Working Paper CS-101. Washington, DC: Inter-American Development Bank. Regional Operations Department 3 (RE3).
  • Perotti, R. 2002. Estimating the Effects of Fiscal Policy in OECD Countries. European Central Bank Working Papers Series No. 168. Frankfurt, Germany.
  • Quispe-Agnoli, M., and E. Whisler. 2006. Official Dollarization and the Banking System in Ecuador and El Salvador. Economic Review. Third Quarter. Atlanta, GA: Federal Reserve Bank of Atlanta.
  • Rahbek, A., E. Hansen, and J. G. Dennis. 2002. ARCH Innovations and Their Impact on Cointegration Rank Testing. Working Paper No. 22. Copenhagen: Centre for Analytical Finance, University of Copenhagen.
  • Ramsey, F. P. 1928. “A Mathematical Theory of Saving.” The Economic Journal 38: 543–559. doi:10.2307/2224098.
  • Ray, R., and S. Kozameh. 2012. Ecuador’s Economy Since 2007. Washington, DC: Center for Economic and Policy Research.
  • Reinhart, C. M., and K. S. Rogoff. 2004. “The Modern History of Exchange Rate Arrangements: A Reinterpretation.” The Quarterly Journal of Economics 119: 1–48. doi:10.1162/003355304772839515.
  • Romer, C. D., and D. Romer. 2010. “The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks.” American Economic Review 100: 763–801. doi:10.1257/aer.100.3.763.
  • Sandoval, L., and M. Weisbrot. 2009. Update on the Ecuadorian Economy. Washington, DC: Center for Economic and Policy Research.
  • The World Bank and Inter-American Development Bank. 2004. Creating Fiscal Space for Poverty Reduction in Ecuador: A Fiscal Management and Public Expenditure Review. Report No. 28911-EC. Washington, DC: The World Bank and Inter-American Development Bank.
  • Tornell, A., and A. Velasco. 1998. “Fiscal Discipline and the Choice of a Nominal Anchor in Stabilization.” Journal of International Economics 46: 1–30. doi:10.1016/S0022-1996(97)00039-1.
  • Tornell, A., and A. Velasco. 2000. “Fixed versus Flexible Exchange Rates: Which Provides More Fiscal Discipline?” Journal of Monetary Economics 45: 399–436. doi:10.1016/S0304-3932(99)00057-4.
  • Trehan, B., and C. Walsh. 1991. “Testing Intertemporal Budget Constraints: Theory and Applications to U.S. Federal Budget and Current Account Deficits.” Journal of Money Credit and Banking 23: 206–223. doi:10.2307/1992777.
  • Vladimirov, V., and M. Neycheva. 2009. “Determinants of Non-linear Effects of Fiscal Policy on Output: The Case of Bulgaria.” South East European Journal of Economics and Business 4: 51–61. doi:10.2478/v10033-009-0004-5.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.