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The Analysis of Fiscal Policy Shocks’ Transmission in Morocco

Author

Listed:
  • Hicham BADDI

    (PhD researchers, Department of economics, University Mohammed V, Rabat-Agdal, Morocco.)

  • Kamal LAHLOU

    (PhD researchers, Department of economics, University Mohammed V, Rabat-Agdal, Morocco.)

Abstract

The issue of assessing the effects of fiscal shocks on macroeconomic variables, in particular on GDP has been the subject of many theoretical and empirical studies in the last decade. All these studies have used three approaches to analyze this question. The first is narrative, the second is based on the structural VAR and the third is based on DSGE models. Indeed, their results confirm the hypothesis that fiscal policy has a positive effect on economic activity. The purpose of this paper is to analyze the impact of fiscal shocks on economic activity in Morocco. The results of this assessment have found a positive impact of expansionary fiscal policy on economic growth and consumer spending in Morocco.

Suggested Citation

  • Hicham BADDI & Kamal LAHLOU, 2013. "The Analysis of Fiscal Policy Shocks’ Transmission in Morocco," International Journal of Business and Social Research, LAR Center Press, vol. 3(10), pages 1-12, October.
    • Handle: RePEc:lrc:larijb:v:3:y:2013:i:10:p:1-12
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    References listed on IDEAS

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    2. Muhsin Ali & Karim Khan, 2020. "Volatility in Discretionary Public Spending and Economic Growth: A Cross Country Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(1), pages 45-68.

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    Keywords

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    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H - Public Economics

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