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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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File URL: http://www.ipe.ro/rjef/rjef4_08/rjef4_08_6.pdf
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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
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ingrid Ott & Stephen Turnovsky, 2005. "Excludable and Non-Excludable Public Inputs: Consequences for Economic Growth," CESifo Working Paper Series 1423, CESifo Group Munich.
  2. Baxter, Marianne & King, Robert G, 1993. "Fiscal Policy in General Equilibrium," American Economic Review, American Economic Association, vol. 83(3), pages 315-34, June.
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  18. Barro, Robert J, 1979. "On the Determination of the Public Debt," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 940-71, October.
  19. Albu, Lucian Liviu, 2006. "Trends in the Interest Rate - Investment - GDP Growth Relationship," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 3(3), pages 5-13, September.
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  24. Kneller, Richard & Bleaney, Michael F. & Gemmell, Norman, 1999. "Fiscal policy and growth: evidence from OECD countries," Journal of Public Economics, Elsevier, vol. 74(2), pages 171-190, November.
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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 - Economic Edition, University "Vasile Alecsandri" 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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