Investigating the Asymmetric Effects of Fiscal Policy on Economic Growth in Iran: A Quantile Regression Approach

Document Type : Original Article


1 PhD in Economics, Faculty of Management and Economics, The Islamic Azad University, Science and Research Branch, Tehran, Iran,

2 Assistant Professor of Economics, Faculty of Management and Economics, Islamic Azad University, Science and Research Branch, Tehran, Iran

3 Professor of Economics, Faculty of Management and Economics, Islamic Azad University, Science and Research Branch, Tehran, Iran

4 Associate Professor of Economics, Faculty of Management and Economics, Islamic Azad University, Science and Research Branch, Tehran, Iran



Monetary and fiscal policies are the most important policy tools that affect economic activities through economic authority decision. The aim of this study is to investigate the asymmetric effects of fiscal policy on economic growth in Iran by quantile regression approach using quarterly data of 1988-2016 period. The results showed that tax, investment and foreign trade had a significant positive effect on economic growth. In the low-quantiles of economic growth, the impact of government spending on economic growth has been positive, but the impact of government spending on economic growth has been negative and significant in high growth rates. Also, the effect of the budget deficit on economic growth at low rates of economic growth has been negative. At high rates of economic growth, this effect has been positive and significant. Also, the results showes that the effects of government deficit and consumption on economic growth were asymmetric. For the other variables symmetric effects were confirmed.


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