Title: DYNAMIC EFFECTS OF FISCAL POLICY SHOCKS ON
OUTPUT IN UGANDA
Authors: Margaret Magumba,
3Happiness Naumanga 1. Uganda Revenue Athorty, Research, Planning and Development
2. Ministry of Finance Georgia
3. Bank of Tanzania
MLA 8 Magumba, Margaret, et al. "DYNAMIC EFFECTS OF FISCAL POLICY SHOCKS ON OUTPUT IN UGANDA." Int. j. of Social Science and Economic Research, vol. 4, no. 2, Feb. 2019, pp. 1233-1255, ijsser.org/more2019.php?id=91. Accessed Feb. 2019.
APA Magumba, M., Mumladze, T., & Naumanga, H. (2019, February). DYNAMIC EFFECTS OF FISCAL POLICY SHOCKS ON OUTPUT IN UGANDA. Int. j. of Social Science and Economic Research, 4(2), 1233-1255. Retrieved from ijsser.org/more2019.php?id=91
Chicago Magumba, Margaret, Tinatin Mumladze, and Happiness Naumanga. "DYNAMIC EFFECTS OF FISCAL POLICY SHOCKS ON OUTPUT IN UGANDA." Int. j. of Social Science and Economic Research 4, no. 2 (February 2019), 1233-1255. Accessed February, 2019. ijsser.org/more2019.php?id=91.
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Abstract: Several studies world over have indicated varying effects of fiscal policy on economic growth in
different countries. In this paper, we sought to establish the dynamic effects of fiscal policy
shocks on output in Uganda, using SVAR analysis. We assumed that the steady state effect of
aggregate demand shocks on output and tax revenue in Uganda is zero and, the contemporaneous
effect of fiscal policy shocks on government spending in Uganda is zero. Our results indicated
that fiscal policy shocks have a positive and permanent effect on output in Uganda and, the same
shocks are the major drivers of variance in Uganda's output. These results ratify Uganda's
choice to use fiscal policy, mainly investment in infrastructure development, as a tool to achieve
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