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Fiscal Policy Effectiveness in the Tunisian Economy

Fiscal Policy Effectiveness in the Tunisian Economy

Slah Slimani
Copyright: © 2023 |Pages: 19
ISBN13: 9781668474600|ISBN10: 1668474603|EISBN13: 9781668474617
DOI: 10.4018/978-1-6684-7460-0.ch062
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MLA

Slimani, Slah. "Fiscal Policy Effectiveness in the Tunisian Economy." Research Anthology on Macroeconomics and the Achievement of Global Stability, edited by Information Resources Management Association, IGI Global, 2023, pp. 1151-1169. https://doi.org/10.4018/978-1-6684-7460-0.ch062

APA

Slimani, S. (2023). Fiscal Policy Effectiveness in the Tunisian Economy. In I. Management Association (Ed.), Research Anthology on Macroeconomics and the Achievement of Global Stability (pp. 1151-1169). IGI Global. https://doi.org/10.4018/978-1-6684-7460-0.ch062

Chicago

Slimani, Slah. "Fiscal Policy Effectiveness in the Tunisian Economy." In Research Anthology on Macroeconomics and the Achievement of Global Stability, edited by Information Resources Management Association, 1151-1169. Hershey, PA: IGI Global, 2023. https://doi.org/10.4018/978-1-6684-7460-0.ch062

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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.

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