Fiscal Policy Effectiveness in the Tunisian Economy

Slah Slimani ()

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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: 2021-10
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Published in International Journal of Sustainable Economies Management, 2021, 10 (4), pp.21-38. ⟨10.4018/IJSEM.2021100102⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03583560

DOI: 10.4018/IJSEM.2021100102

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