Test de l’effet de stabilisation automatique par la modélisation SVAR sans contrainte de long terme

Testing the Automatic Stabilization Effect: Evidence from SVAR Model without Long-Term Constraint

Hassan Ghassan ()

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this paper is to test the mechanism of automatic stabilization between the dynamics of real GDP-growth and budget deficit by using structural VAR methodology with quarterly macroeconomic data of Moroccan economy. The SVAR model allows us to test and evaluate the extent of those mechanisms. It exhibits also the conjunctural and structural components of budget deficit. From a methodological point of view, we avoid to impose long run constraints to adopt simple and efficient approach linking the short-term parameters. The empirical results show that the mechanisms of automatic stabilizing are checked in our sample. The historical decomposition permits us to determine the orientation of budget policy. This decomposition shows that since the finance crisis in 1983 the government respects in tendency a budgetary rule in the sense that the observed balance reflects automatic stabilization measures both of transitory and permanent nature.

Keywords: Budget deficit; economic growth; automatic stabilizer; SVAR. (search for similar items in EconPapers)
JEL-codes: C5 C52 H3 H6 (search for similar items in EconPapers)
Date: 2003-02-08, Revised 2003-04-02
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/56387/1/MPRA_paper_56387.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:56387

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().