I am currently working on fiscal policy in a developing economy of Nigeria. I have seen many authors proxy fiscal policy with either government expenditure and revenue and public debt. some authors used aggregated data while others used disaggregated data. I am not all that comfortable with these approach since fiscal policy has to with delibrate action of government to influence the economy towards a given direction. Government might decide to spend big or cuts tax, leading to deficit, they may also plan to spend small or raises tax, indicating a surplus. I used dummy variable to separate these two fiscal plans by the government and used their effects to capture the fiscal policy impact on growth. My problem now is how to specify my ARDL models using these dummy variable to capture the fiscal policy? Also will i still need to include any other fiscal variables such as government expenditure, taxation, government debt in this model? And if at all i will need to include any or all of these, how should they enter the ARDL models?

Your expertism will make the current work more informative and scholastic.