University of Tabriz Applied Theories of Economics 2423-6586 9 1 2022 05 22 Applications of fiscal policy with the presence of households with finger consumption using dynamic stochastic general equilibrium model approach Applications of fiscal policy with the presence of households with finger consumption using dynamic stochastic general equilibrium model approach 27 56 13753 10.22034/ecoj.2021.42755.2767 FA Rogaiyeh Tayefeh Jabbari PhD student of Economics, University of Allameh Teymour Mohammadi Associate Professor of Economics, University of Allameh Javid Bahrami Associate Professor of Economics, University of Allameh Journal Article 2020 11 11 This thesis investigates the impact of government spending shocks on macroeconomic variables in Iran, especially on private consumption in the form of a stochastic dynamic general equilibrium (DSGE) model, in a closed economy with non-Ricardian households and a relatively rigorous fiscal policy. The model simulation results show that non-Ricardian households are a stimulus to increase total consumption in response to government spending shocks relative to the baseline without non-Ricardian households. The findings also imply that the positive impulse of government spending in Iran does not allow for the dynamic growth of investment. In other words, The effect of spending shock on the investment is negative, while the employment of non-Ricardian household increased as wage increased, but investment declined. also, fiscal policy has a positive effect on production, although the multiplier is lower than one and will decrease over time. Given that the effect of government spending shocks on private consumption spending is positive. The model results do not follow Ricardian Equivalence Theorem, which is in the form of crowding-in This thesis investigates the impact of government spending shocks on macroeconomic variables in Iran, especially on private consumption in the form of a stochastic dynamic general equilibrium (DSGE) model, in a closed economy with non-Ricardian households and a relatively rigorous fiscal policy. The model simulation results show that non-Ricardian households are a stimulus to increase total consumption in response to government spending shocks relative to the baseline without non-Ricardian households. The findings also imply that the positive impulse of government spending in Iran does not allow for the dynamic growth of investment. In other words, The effect of spending shock on the investment is negative, while the employment of non-Ricardian household increased as wage increased, but investment declined. also, fiscal policy has a positive effect on production, although the multiplier is lower than one and will decrease over time. Given that the effect of government spending shocks on private consumption spending is positive. The model results do not follow Ricardian Equivalence Theorem, which is in the form of crowding-in https://ecoj.tabrizu.ac.ir/article_13753_2c54975f48b23a5f1141bf9b468ca5df.pdf