Analysing the effects of fiscal policy shocks in the South African economy

Content Provider	Semantic Scholar
Author	Jooste, Charl Liu, Guangling Naraidoo, Ruthira
Copyright Year	2013
Abstract	This paper is the first one to analyse the effect of aggregate government spending and taxes on output for South Africa using three types of a calibrated DSGE model and more data driven models such as a structural vector error correction model (SVECM) and a time-varying parameter VAR (TVP-VAR) to capture possible asymmetries and time variation of fiscal impulses. The impulse responses indicate first, that increases in government expenditure have a positive impact, albeit (at times) less than unity, on GDP in the short run; second, over the long run, the impact of government expenditure on GDP is insignificant; and third, increases in taxes decreases GDP over the short run, while having negligible effects over longer horizons.
Starting Page	215
Ending Page	224
Page Count	10
File Format	PDF HTM / HTML
DOI	10.1016/j.econmod.2013.02.011
Volume Number	32
Alternate Webpage(s)	https://econrsa.org/system/files/publications/working_papers/working_paper_351.pdf
Alternate Webpage(s)	https://doi.org/10.1016/j.econmod.2013.02.011
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article