Synthesis Matrix

Muhammad Ali
Lajvant
Khalil

Tax Govt. Effect on GDP Short run Long run

Revenue/Deficit Spending
Kakar, Z. K. Positive Not in CPI effected Yes. Monetary
(2011). relationship as correlation positively. policy was
Fiscal variables net tax revenue with GDP but found rather
and economic obtained with it does exist. more effective
development growth in GDP but at the cost
of inflation.
Shahid Ali, S. I. Fiscal deficit Monetary The tool of
(March 31-April regarded as policy is a money supply
2, 2009). insignificant. tool for Short suggested.
Whether Fiscal Run and
Stance or preferred
Monetary Policy over fiscal in
is Effective for South Asian
Economic Growth economies.
Najaf, R. ( 2016). Mostly Strong
Impact of Fiscal exogenous correlation
Policy Shocks on shocks among established
the Indian variables. with fiscal tools.
Economy
Attiya Y. Javid, Improvement Only short
M. J. (2010). in terms of run effects
Fiscal Policy and trade leading discussed.
Current Account to a higher
Dynamics in the GDP because
Case of Pakistan of net
exports.
Shaheen, R. CPI increases as A rise in GDP is Multiplier Multiplier effect
(n.d.). Measuring a result of govt. dependent on effect is is negative.
the dynamic implementing expenditure govt. positive. A
Effects of Fiscal taxation. are in expenditure. side effect of
Policy shocks in positive increased
Pakistan. correlation interest rates
with GDP. can be seen.
Mountford, A. Exhibiting post
( 2008). WHAT war long term
ARE THE EFFECTS effects.
OF FISCAL POLICY
SHOCKS?
Jordi Galí, J. D.-S. Expansionary Households
( 2005). fiscal policy to observe a
UNDERSTANDING eradicate phenomenon
THE EFFECTS OF negative effects of offsetting
GOVERNMENT of wealth, wage rates in
SPENDING ON leaving more of future
CONSUMPTION. disposable without
income for asking a
people to proportional
spend. increase in
wage.
Petrotti, R. Tax revenue Negative OECD countries
(2004). raised but the effect of high have been
Estimating the effect on the taxation on found suffering
effects of fiscal intended GDP the effects of
policy in OECD variables fade (consumption fiscal policy and
countries. overtime. and its transmission
investment). mechanism(esp
. in case of
GDP).
Francisco De Tax revenue It may act as a The multiplier Marginal
Castro 2006 raised but stimulant but was found growth
increasing the productivity close to 1. during the
burden doesn’t crashes medium-
help. short run.
Michele Cavallo Raised in the The GDP Short run
short run but couldn’t be changes
distinguished stimulated accessible
from much through IRFs.
consumption.