Fiscal policy and the Ricardian equivalence: Empirical evidence from Morocco
Mouna Marzouk () and
Youssef Oukhallou ()
Additional contact information
Mouna Marzouk: Mohammed V University of Rabat, Faculty of Economics & Law, Applied Economics Lab., Morocco.
Youssef Oukhallou: Mohammed V University of Rabat, Faculty of Economics & Law, Applied Economics Lab., Morocco.
Journal of Economics Library, 2017, vol. 4, issue 3, 372-381
This paper empirically investigates the validity of the Ricardian equivalence hypothesis in Morocco, based on recent data (1980-2016) that encompasses interesting episodes of demand-oriented expansionary government policy during the second half of the 2000s, followed by significant restrictive fiscal measures starting from 2012. We use the SVAR methodology, which enables us to make the difference between the dynamics of savings and the budget deficit by separating them into two types of shocks. Our results suggest that the equivalence is verified in the Moroccan macroeconomic framework. The paper concludes that national savings offset up to 76% of fiscal deficit shocks.
Keywords: Fiscal deficit; National savings; Ricardian equivalence; SVAR model. (search for similar items in EconPapers)
JEL-codes: E21 E62 H31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ksp:journ5:v:4:y:2017:i:3:p:372-381
Access Statistics for this article
Journal of Economics Library is currently edited by Bilal KARGI
More articles in Journal of Economics Library from KSP Journals Istanbul, Turkey.
Bibliographic data for series maintained by Bilal KARGI ().