Orientation of the Fiscal Policy in Tunisia: Structural VAR Analysis

Authors: 
Wissem Khanfir
JEL codes: 
C32 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models, E62 - Fiscal Policy.
Abstract: 
The objective of this paper is to indicate the orientation of fiscal policy in Tunisia, using the structural budget balance, during the period 1972-2014. For this purpose, we estimate a structural VAR model consisting of the fiscal deficit to current GDP ratio and the volume of economic activity represented by the real GDP. We estimate bivariate structural VAR in order to decompose fiscal deficit fluctuations into different disturbances.
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