tailieunhanh - The effect of government spending on macroeconomic stability

The present study aims at investigating the effect of government spending on the stability of macro-economy for the time interval 1979-2011 using the Johansen-Juselius method. | The effect of government spending on macroeconomic stability Accounting 2 2016 31 36 Contents lists available at GrowingScience Accounting homepage ac The effect of government spending on macroeconomic stability Keyvan Karimia Rahebe Ghasemzadeb Payam Khodaeia and Payam Abdic a Department of Accounting Shahindezh Branch Islamic Azad University Shahindezh Iran b Department of Computer Science Shahindezh Branch Islamic Azad University Shahindezh Iran c Department of Management Shahindezh Branch Islamic Azad University Shahindezh Iran CHRONICLE ABSTRACT Article history Macroeconomic stability plays essential role on the performance of governments and attaining Received June 5 2015 economic development. Therefore governments can displace the demand curve and achieve Received in revised format different goals such as economic development and growth by considering financial August 16 2015 instruments which are available for them. Thus the present study aims at investigating the Accepted December 21 2015 Available online effect of government spending on the stability of macro-economy for the time interval 1979- December 22 2015 2011 using the Johansen-Juselius method. The results indicate that the variables of goods price Keywords index and services as well as government investment spending had positive effects and Macro-economy stability variables of exchange free rate government consumption spending and government tax The Johansen-Juselius method revenues had negative effects on economic development. Government spending 2016 Growing Science Ltd. All rights reserved. 1. Introduction The necessity and significance of macroeconomic stability has been the focus of several economists after the presentation of a report by the World Bank in 1991. Macroeconomic stability has important signs on the orientation of macroeconomic policies monetary and financial credit of a country for economic agents. Particularly the success of all programs of .