Essay on the Assessment of Madagascar’s Fiscal Multiplier

Tojonirina RANAIVOSON, Jean Razafindravonona


This paper investigates the role played by the fiscal authorsity on economic activity. In this respect, we try to assess the value of the fiscal multiplier associated to different type of expenditure such as functioning, wage and capital. In order to capture both the short and long run impact, we perform an ARDL Model on Malagasy budgetary data spanning from the period 1960 to 2019. The results displayed that the error correction term is negative but not significant. In other words, only the short run matter, inferring the absence of a long run relationship.

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ARDL Model, Fiscal Multiplier, Bounds test

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