Determination of the orientation and Fiscal impulse in Nicaragua for the period 1994 - 2016

Abstract

The article presents the estimation of Fiscal Orientation and Fiscal Impulse indicators for Nicaragua. For this, the general methodology proposed by (Heller, 1986) was used to achieve this purpose and the Hodrick-Prescott filter was also used to estimate the Potential GDP and the estimates of structural income and expenditure were calculated by (Morales & Flores , 2017), the data was obtained from the Statistical Yearbook of the Central Bank of Nicaragua. Fiscal policy has been concentrated with an expansive orientation and with a mainly pro-cyclical fiscal impulse, in addition it is inferred that the result of fiscal policy obeys to a structural component of economic activity