The Analysis of the Effect on the Government Expenditure Under the 12th National and Social Development Plan with Dynamic Stochastic General Equilibrium
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Abstract
This research article aims to (1) study changes of the economic multiplier from the use of government fiscal measures, using a dynamic stochastic general equilibrium model, and (2) analyze the choice of appropriate fiscal measures from the changes of the economic multiplier for stimulate aggregate demand during the 12th National Economic and Social Development Plan of Thailand. The DSGE model was used to examine the data in this study, analyzing secondary data collected from relevant government agencies' online databases between 2017 and 2021, using the DSGE-NK model and Bayesian parameter estimation.
Findings are as follows: The reduction of personal income and corporate taxes is the most effective fiscal measure to intensify household consumption and private investment multipliers in the short, medium, and long run. Thus, the government and relevant agencies should consider reducing personal income and consumption taxes to boost the economy's aggregate demand.
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Academic articles, research articles, and book reviews in the Ph.D. in Social Sciences Journal are author’s opinions, and not the publisher’s, and is not the responsibility of the Ph.D. in Social Sciences Journal Philosophy Association, Ramkhamhaeng University. (In the case that research is done on human, the researcher has to be trained in Ethics for Doing Research on Human Training and has to produce the evidence of the training).
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