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Fiscal policy and the Ricardian equivalence: Empirical evidence from Morocco

Journal of Economics Library

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Title Fiscal policy and the Ricardian equivalence: Empirical evidence from Morocco
 
Creator MARZOUK, Mouna;

Mohammed V University of Rabat, Faculty of Economics & Law, Agdal Applied Economics Lab., Morocco.

+212669-777757 m.marzouk@dgi.gov.ma // orcid.org/0000-0002-9733-9806
OUKHALLOU, Youssef;

Corresponding author. Mohammed V University of Rabat, Faculty of Economics & Law, Agdal Applied Economics Lab., Morocco.

+212661-710495 youssef.oukhallou@africaneconomists.org  // orcid.org/0000-0001-5816-1198
 
Subject Fiscal deficit; National savings; Ricardian equivalence; SVAR model.
H31; E21; E62.
 
Description Abstract. This paper empirically investigates the validity of the Ricardian equivalence hypothesis in Morocco, based on recent data (1980-2016) that encompasses interesting episodes of demand-oriented expansionary government policy during the second half of the 2000s, followed by significant restrictive fiscal measures starting from 2012. We use the SVAR methodology, which enables us to make the difference between the dynamics of savings and the budget deficit by separating them into two types of shocks. Our results suggest that the equivalence is verified in the Moroccan macroeconomic framework. The paper concludes that national savings offset up to 76% of fiscal deficit shocks.Keywords. Fiscal deficit, National savings, Ricardian equivalence, SVAR model.JEL. H31, E21, E62.
 
Publisher Journal of Economics Library
 
Contributor —
 
Date 2017-09-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEL/article/view/1397
10.1453/jel.v4i3.1397
 
Source Journal of Economics Library; Vol 4, No 3 (2017): September; 372-381
2149-2379
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEL/article/view/1397/1412
 
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