The political economy of the fiscal deficit in nineteenthcentury Chile

This report examines the rise of fiscal deficits in 19th-century Chile, attributing it to increased political instability.

(Generated with the help of GPT-4)

The research method involves historical analysis of Chile's fiscal spending and revenues between 1833 and 1891, utilizing the Bai-Perron test to identify structural breaks in the Chilean fiscal deficit series and examining political and economic events to understand their impact on fiscal policy.

(Generated with the help of GPT-4)

The report explores the fiscal deficit trend in 19th-century Chile, suggesting political turmoil as a key factor, particularly from the 1860s onward, which led to a departure from earlier economic stability and alignment of taxes with spending.

(Generated with the help of GPT-4)

Categories: Chile geographic scope | English publication language | budget deficits | civil war | economic history | fiscal policy | political instability | political realignment | public spending | tax smoothing | tax tilting | war financing