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Fiscal Responsiveness, Persistence and Discretion: A Case Study of Pakistan

Author

Listed:
  • Syed Ammad

    (Applied Economics Research Centre,University of Karachi)

  • Sabihuddin Butt

    (Applied Economics Research Centre, University of Karachi)

  • Shaista Alam

    (Applied Economics Research Centre, University of Karachi)

Abstract

The main objective of this study is to analyses the fiscal policy conditions in Pakistan; in case of output change ( fiscal responsiveness), effect of last year policy on this year( fiscal persistence) and finally fiscal discretion, through a 2SLS method the study period consist of 1972 to 2010. The main finding of the study is government expenditures are more responsive in case Pakistan which is the main cause of this fiscal imbalances and also indicating an unstable fiscal stance.

Suggested Citation

  • Syed Ammad & Sabihuddin Butt & Shaista Alam, 2012. "Fiscal Responsiveness, Persistence and Discretion: A Case Study of Pakistan," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(45), pages 227-244, September.
    • Handle: RePEc:rej:journl:v:15:y:2012:i:45:p:227-244
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    More about this item

    Keywords

    Efficiency; Optimal Taxation; National Government Expenditures and Related Policies; Pakistan; Fiscal Policy;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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