Mossadak Anas : Monetary and Fiscal Policy in an Estimated DSGE Model for Morocco (2013)
Monetary and Fiscal Policy in an Estimated DSGE Model for Morocco
By: Mossadak Anas*
Abstract : In this study we estimate a Dynamic Stochastic General Equilibrium (DSGE) model using Bayesian techniques to analyse the effects of monetary and fiscal policy in Morocco. The results suggest that a positive monetary policy shock generates a diminution of consumption, investment, output and inflation. A positive shock on government expenditures produces an increase in output and wage but generates also a decrease in private consumption and investment due to an increase in inflation and interest rate. Finally, a positive shock on capital tax produces a decrease in investment and thus in output. In general, the duration of monetary shock is shorter than fiscal shock; the first vanishes in about 10 quarters and the latter is more persistent and lasts more than 15 quarters.
Keywords : DSGE, NKM, bayesian estimation, monetary policy, fiscal policy, impulses responses.
To cite this article : ANAS, M. (2013). Monetary and Fiscal Policy in an Estimated DSGE Model for Morocco. British Journal of Science, 9(1), 1-17.
Link to download the article : http://www.ajournal.co.uk/
Abstract : In this study we estimate a Dynamic Stochastic General Equilibrium (DSGE) model using Bayesian techniques to analyse the effects of monetary and fiscal policy in Morocco. The results suggest that a positive monetary policy shock generates a diminution of consumption, investment, output and inflation. A positive shock on government expenditures produces an increase in output and wage but generates also a decrease in private consumption and investment due to an increase in inflation and interest rate. Finally, a positive shock on capital tax produces a decrease in investment and thus in output. In general, the duration of monetary shock is shorter than fiscal shock; the first vanishes in about 10 quarters and the latter is more persistent and lasts more than 15 quarters.
Keywords : DSGE, NKM, bayesian estimation, monetary policy, fiscal policy, impulses responses.
To cite this article : ANAS, M. (2013). Monetary and Fiscal Policy in an Estimated DSGE Model for Morocco. British Journal of Science, 9(1), 1-17.
Link to download the article : http://www.ajournal.co.uk/
*PhD researcher , department of economics-University Mohamed V, Rabat-Agdal, E-mail: anas.mossadak@gmail.com