20 Years of Dollarization in Ecuador: A Synthetic Control Analysis

35 Pages Posted: 22 Sep 2020

See all articles by Nicolas Cachanosky

Nicolas Cachanosky

Metropolitan State University of Denver; American Institute for Economic Research

John Ramseur

Metropolitan State University of Denver - Department of Economics

Date Written: August 20, 2020

Abstract

This paper uses a Synthetic Control Analysis to examine the economic effectiveness of dollarization in Ecuador. We address common concerns surrounding the adoption of dollarization as a policy and provide several solutions to those concerns. We find that dollarization resulted in significant higher levels of income without clear evidence of worsening in social health variables such as infant mortality, poverty, and income distribution.

Keywords: Ecuador, dollarization, synthetic control analysis

JEL Classification: E42; E50; O43

Suggested Citation

Cachanosky, Nicolas and Ramseur, John, 20 Years of Dollarization in Ecuador: A Synthetic Control Analysis (August 20, 2020). AIER Sound Money Project Working Paper No. 2020-16, Available at SSRN: https://ssrn.com/abstract=3678055 or http://dx.doi.org/10.2139/ssrn.3678055

Nicolas Cachanosky (Contact Author)

Metropolitan State University of Denver ( email )

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Denver, CO 80217
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HOME PAGE: http://www.ncachanosky.edu

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
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John Ramseur

Metropolitan State University of Denver - Department of Economics ( email )

890 Auraria Pkwy
Denver, CO 80204
United States

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