• Corpus ID: 13335261

Measuring the dynamic Effects of Fiscal Policy shocks in Pakistan

  title={Measuring the dynamic Effects of Fiscal Policy shocks in Pakistan},
  author={Rozina Shaheen},
This preliminary study characterizes the dynamic effects of shocks in government spending and taxes on macroeconomic variables in Pakistan. It employs a five variable structural Vector Auto regression model covering the time period 1973:1-2008:4 for the variables GDP, inflation, the interest rate ,net taxes and government expenditure. The identification of fiscal policy shocks is achieved through two approaches; the recursive approach proposed by Fatas and Mihov (2001), and the structural VAR… 

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