Abstract

PENA PARRA, Carlos José. UNCERTAINTY, GOVERNANCE AND ECONOMIC GROWTH. VENEZUELA 1968-2010. Rev.econ.inst. [online]. 2013, vol.15, n.28, pp.313-331. ISSN 0124-5996.

This paper examines the relationship between macroeconomic uncertainty, fiscal governance and economic growth in Venezuela from 1968 to 2010. There is feedback between fiscal volatility and uncertainty, but the latter may be the result of weak governance, particularly volatile fiscal policy. Fiscal volatility affects fiscal outcomes, especially when fiscal policy is discretionary. A VAR model is used to examine these results.

Keywords : uncertainty; investment; growth; governance; fiscal volatility.

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