EFFET DE LA POLITIQUE BUDGÉTAIRE SUR LA CONSOMMATION PRIVÉE EN TUNISIE:MODÉLISATION NON-LINÉAIRE
EFFECT OF FISCAL POLICY ON PRIVATE CONSUMPTION IN TUNISIA: MODELING NONLINEAR

Summary/Abstract: This article examines the impact of fiscal policy on private consumption in Tunisia. It shows that the signs and values of fiscal multipliers vary depending on several exogenous macroeconomic variables. The impact of fiscal shock is not reflected in the same way in different regimes. It depends on whether the fiscal regime is characterized by normal or "fiscal stress". The later is marked by high levels of public debt and budget deficits. We provide evidence that private consumption reacts in a non-linear fashion, depending on public and private debt.

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