Document Type : case-study

Authors

• Amirhossein َAfzali ¹
• mohammadraza ghasemi ²

¹ Kharazmi University

² kharazmi University

Abstract

The impact of government spending on GDP is one of the important issues in economic discussions and analysis. The importance of the issue from a theoretical perspective is how the public sector can create stable conditions for economic growth. Unfortunately, there is little information about the effects of these policies and most studies have examined monetary policy; while, the difference of opinion among economists about the effects of monetary policy is greater than the effects of fiscal policy. Delangizan and Khazair (2012) have studied the effects of fiscal policy shocks on Iran's economic growth for the period 1959-2009. In order to extract positive and negative fiscal policy shocks, the Sheng Chen model was used in 2007. The results of this study show that positive and negative shocks to government fiscal policy have completely asymmetric effects only in the area of ​​development budgets, and also that negative (contractionary) shocks have a larger and more reducing effect on economic growth than positive (expansionary) shocks to fiscal policy. (Hedayat Hosseinzadeh 2017)

Keywords

• Total budget
• gross domestic product
• government resources
• government spending
• tax rate
• interest rate

Main Subjects

• Accounting
• Audit