THE IMPACT OF FISCAL POLICY ON ECONOMY GROWTH
THE IMPACT OF FISCAL POLICY ON ECONOMY GROWTH
Author(s): Iulia ROȘOIUSubject(s): Social Sciences, Economy, National Economy, Business Economy / Management, Micro-Economics, Sociology, Applied Sociology, Evaluation research, Social development, Policy, planning, forecast and speculation, Economic development, Financial Markets, Public Finances, Globalization, Socio-Economic Research
Published by: Fundatia Română pentru Inteligenta Afacerii
Keywords: Fiscal shock; Revenues structure; Simple VAR model; Structural VAR model;
Summary/Abstract: The purpose of this article is to analyze the impact of the fiscal shocks on the economic growth in Romania. Firstly, the article considers the total fiscal shock by using total government revenues and then it studies their structure. Three categories of revenues are used: distortionary taxation, non-distortionary taxation and other revenues. The first estimation is done by using a simple Vector Autoregressive model and the second is based on a Structural Vector Autoregressive model. The results indicate a positive impact if total revenues increase and a negative one when the groups of taxation are considered individually. Among the revenues’ categories, the most significant impact is obtained for distortionary taxation and other revenues.
Journal: SEA – Practical Application of Science
- Issue Year: VII/2019
- Issue No: 20
- Page Range: 109-115
- Page Count: 6
- Language: English