IMPACT OF NFPS CAPITAL EXPENDITURE ON ECONOMIC GROWTH IN BOLIVIA IN YEARS 2006-2016

In recent years, public investment has become considerably more dynamic with the application of the Economic Social Communitarian Productive Model (MESCP) since 2006, which helped reactivate and boost the domestic demand, unlike what happened in previous periods. The scenario simulations based on a Dynamic Stochas-tic General Equilibrium (DSGE) model proposed by the study reveal the importance of capital expenditure in economic growth. The results show that changes in capital spending in the short term persistently boost economic growth and have positive ef-fects on consumption and private investment, dismissing the existence of a possible crowding-out effect in the private sector.