@article{FetoJayamohanVilks2021,
  author    = {Adem Feto and M.K. Jayamohan and Arnis Vilks},
  title     = {The effects of fiscal policy shocks on macroeconomic variables in developing countries},
  series   = {African Journal of Business \& Economic Research : AJBER},
  volume    = {16},
  number    = {1},
  issn      = {1750-4554},
  doi       = {10.31920/1750-4562/2021/v16n1a1},
  pages     = {9 -- 28},
  year      = {2021},
  abstract  = {Stabilization of the economy through fiscal policies has been a broadly discussed subject over many decades. It gained momentum again after the 2008 global recession and is of utmost interest with regard to the COVID-19 crisis. The purpose of this paper is to examine the effects of fiscal policy on output and inflation. The data used to conduct the meta-analysis consist of empirical and calibrated fiscal impulse values of Dynamic Stochastic General Equilibrium studies and databases. An increase in fiscal policy shock by one percent leads to a one-period rise in output and inflation by 0.104 and 0.03 percent. Studies that employ the Bayesian method deliver higher effect. The interaction of fiscal impulse and interest jointly affect the output. Fiscal policy intervention in investment has more effect on growth than inflation-friendly government consumption. This study would help policy makers design stabilization strategies, and researchers to further investigate the subject matter and reconcile the contradictory conclusions of previous studies.},
  language  = {en}
}