Saudi Journal of Business and Management Studies (SJBMS)
Volume-2 | Issue-04 | 375-381
Original Research Article
Non-Linear Effects of Government Consumption in Tunisia: Does Fiscal Policy Changes Matter?
Wissem Khanfir
Published : April 29, 2017
Abstract
This study examines non-linear effect of fiscal policy (represented by increases in government consumption)
on private consumption. Actually, it suggests that this effect depends on the nature of fiscal policy changes. Using a STR
(Smooth Transition Regression) model on Tunisia data over the 1975-2010 period, this paper provides evidence that the
expansionary effect of higher government consumption decreases when fiscal policy is expansive.