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Mohamed Benbouziane
Abu Bakr Belkaid University
Economics, Econometrics & Finance

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Austerity in Time of Crisis: A Solution or a Dangerous Idea? Evidence from Algeria Hadjer Boulila; Mohamed Benbouziane
ETIKONOMI Vol 17, No 1 (2018)
Publisher : Faculty of Economic and Business

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (437.76 KB) | DOI: 10.15408/etk.v17i1.6799

Abstract

Our study is aimed to investigate the effect of austerity measures on the economic growth. Besides that, this research wants to examine whether austerity is the solution of the current oil crisis in Algeria or not. To achieve this aim we have used a Non-Linear Autoregressive Lag Distributed model (NARDL) to illustrate the negative and positive changes in austerity measures and their effects on gross domestic product. The findings of our estimation provides that neither increasing taxes cuts nor reducing expenditures is a solution for the crisis, that what confirms empirically what Keynesian economists approve. Therefore, Algeria’s authorities must quickly find other solution rather than austerity policies.DOI: 10.15408/etk.v17i1.6799
Co-Authors Hadjer Boulila