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Fiscal Policy Effectiveness in the Tunisian Economy

Slah Slimani
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Slah Slimani: University of Tunis El Manar, Tunisia

International Journal of Sustainable Economies Management (IJSEM), 2021, vol. 10, issue 4, 21-38

Abstract: Based on Blanchard and Perotti, Perotti, and Biau and Girard approaches, this paper evaluates the fiscal policy's effectiveness in Tunisia using Structural VAR model. The results show the short-run macroeconomic efficiency of a structural increase in public spending in Tunisia with a fiscal multiplier close to 1,806, in line with Keynesian's models. However, the estimated effect of a structural increase in tax revenues on activity is non-Keynesian. This is explained by the presence of a voracity effect in the case of the Tunisian economy.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:igg:jsem00:v:10:y:2021:i:4:p:21-38

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