Macroeconomic Effects of Fiscal Policy in Morocco: An Approach to Structural VAR

Tlaytmaste Bahaddi and Mohamed Karim

Applied Economics and Finance, 2018, vol. 5, issue 1, 75-80

Abstract: This article evaluates the short-term macroeconomic effectiveness of a structural rise in public spending in Morocco through a Structural Vector Autoregressive Model (SVAR) inspired by the approach of Blanchard and Perotti (2002). The response of the real economic activity following a structural rise of the public spending is small and significant only in the very short term. The evaluation of transmission channels reveals, moreover, a deterioration of the trade balance and a depreciation of the real effective exchange rate. Finally, the results of the estimation concluded that discretionary fiscal shocks have a Keynesian effect on the level of activity.

Keywords: fiscal policy; real economic activity; VAR structural (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:rfa:aefjnl:v:5:y:2018:i:1:p:75-80

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