Beta
195943

Measuring Fiscal Multipliers in Egypt: Applying the Bucket and SVAR Approaches

Article

Last updated: 03 Jan 2025

Subjects

-

Tags

الاقتصاد

Abstract

Contrary to the Keynesian view, quantifying the fiscal multipliers in Egypt yields small magnitude using empirical and non-empirical approaches. The effectiveness of fiscal policy is analyzed using two approaches. Firstly, the ‘Bucket approach' deduces the size of fiscal multipliers within the framework of several structural factors that are believed to have a significant effect in determining the size of fiscal multiplier. This represents the first such study that applies the "Bucket approach" in the case of Egypt. Secondly, the Structural Vector Auto-Regression (SVAR) approach is estimated over the period (2005/06 – 2017/18) with quarterly data. This high-frequency data enables identifying the SVAR model through imposing the contemporaneous restrictions. The model includes government expenditures, tax revenues, output and interest rate in real terms. The findings of the 'Bucket approach' and SVAR were consistent and confirm a limited Keynesian demand push effect. Government spending proves to be much more effective tool than the tax revenues.

DOI

10.21608/aja.2021.88851.1128

Keywords

Fiscal Multipliers, government expenditures, Tax revenues, Bucket approach, Structural Vector Autoregression (SVAR)

Authors

First Name

Sahar Mohamed

Last Name

Abdel-Haleim

MiddleName

-

Affiliation

الجامعة البريطانية في مصر

Email

sahar.halim@bue.edu.eg

City

القاهرة

Orcid

0000-0002-9914-3268

Volume

44

Article Issue

4

Related Issue

44754

Issue Date

2024-08-01

Receive Date

2021-08-03

Publish Date

2024-08-01

Page Start

349

Page End

366

Print ISSN

1110-5453

Online ISSN

2663-4473

Link

https://aja.journals.ekb.eg/article_195943.html

Detail API

https://aja.journals.ekb.eg/service?article_code=195943

Order

17

Type

بحوث باللغة الإنجلیزیة

Type Code

707

Publication Type

Journal

Publication Title

المجلة العربية للإدارة

Publication Link

https://aja.journals.ekb.eg/

MainTitle

Measuring Fiscal Multipliers in Egypt: Applying the Bucket and SVAR Approaches

Details

Type

Article

Created At

24 Dec 2024