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, 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.
CITATION STYLE
Brito-Gaona, L. F., & Iglesias, E. M. (2017). Inversión privada, gasto público, presión tributaria en América Latina. Estudios de Economia, 44(2), 5–30. https://doi.org/10.4067/s0718-52862017000200131
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