The Distributional Effects of Fiscal Policy on Consumption and Employment in Nigeria: A Bayesian DSGE Approach
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Date
2019-03
Authors
Evans, O.
Nwaogwugwu, I.C.
Odior, E.S.O.
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Economic and Policy Analysis
Abstract
This study investigates the distributional effects of fiscal policy on consumption and employment in Nigeria using a Bayesian DSGE approach for the period 1981-2017. The empirical results show that government spending has higher positive effects on the employment and consequently the consumption of poor households. Also, government transfers have higher positive effects on the consumption of poor households. The study also shows that public investment has higher positive effects on the employment of poor households, but higher positive effects on the consumption of rich households. Consumption tax, capital tax and labor tax have higher effects on the consumption of the rich than of the poor households, but almost equal effects on the employment of both households.
Description
Keywords
Distributional Effects , Fiscal Policy , Consumption , Employment
Citation
Evans O., C. I. Nwaogwugwu & E.S. Odior, (2019), The Distributional Effects of Fiscal on Consumption and Employment in Nigeria: A Bayesian DSGE Approach, Journal of Economic and Policy Analysis, Department of Economics, University of Lagos, Vol. 4, No. 1, Pp, 77 – 92