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Modeling The Economic Growth In Romania. The Influence Of Fiscal Regimes

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Author Info

  • Altar, Moisa

    ()
    (Academy of Economic Studies, Bucharest;)

  • Necula, Ciprian

    ()
    (Academy of Economic Studies, Bucharest;)

  • Bobeica, Gabriel

    ()
    (Academy of Economic Studies, Bucharest;)

Abstract

Taking into consideration the importance of the sustainability of public finance, in the present study we calibrate and simulate a three-sector Greiner, Semmler and Gong (2004) model for the Romanian economy. The simulations were performed considering three fiscal regimes, defined according to the way the government expenditures were financed. By calibrating the model to the Romanian economy, we determine for each fiscal regime the optimal tax rate, that is the tax that maximizes the long-run growth rate, and we forecast the evolution of the real GDP.

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Bibliographic Info

Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): 5 (2008)
Issue (Month): 4 (December)
Pages: 146-160

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Handle: RePEc:rjr:romjef:v:5:y:2008:i:4:p:146-160

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Related research

Keywords: endogenous economic growth; fiscal regime; three-sector economy; path simulation; public capital; balanced growth path;

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References

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Citations

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Cited by:
  1. Marian Dobranschi, 2010. "The sustainability of public debt in Romania in economic and financial crisis," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 15.
  2. Morar Triandafil, Cristina & Brezeanu, Petre & Huidumac, Catalin & Morar Triandafil, Adrian, 2011. "The Drivers of the CEE Exchange Rate Volatility - Empirical Perspective in the context of the Recent Financial Crisis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 212-229, March.

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