IDEAS home Printed from https://ideas.repec.org/a/alu/journl/v2y2013i15p25.html
   My bibliography  Save this article

The Impact Of Fiscal Policy On Gross Domestic Product In The European Union. A Panel Var Model Aproach

Author

Listed:
  • Ioan Talpos

    (West University of Timisoara Romania)

  • Alexandru Avram

    (West University of Timisoara Romania)

  • Roxana HeteÈ™

    (West University of Timisoara Romania)

Abstract

In our research, we intend to observe the influence of fiscal policy together with theinterest rate and inflation rate on economic growth in the European Union member states.Therefore, our goal is to identify the impact of the main instruments of fiscal policy, using anunrestricted panel VAR model, on the evolution of GDP. In this way we can understand what is theresponse of the GDP of the member states of EU 27 to the evolution of public debt, governmentdeficit, government spending, interest rate and inflation. Using impulse response functions we haveseen that private consumption has a positive influence on GDP, the rise in public debt has anegative influence on the evolution of GDP, government expenditure has an alternating influencethat turns from positive in the first half of the observation period into negative in the second, theinterest rate has a strong negative influence while the inflation rate has a positive influence on theevolution of GDP.

Suggested Citation

  • Ioan Talpos & Alexandru Avram & Roxana HeteÈ™, 2013. "The Impact Of Fiscal Policy On Gross Domestic Product In The European Union. A Panel Var Model Aproach," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-25.
  • Handle: RePEc:alu:journl:v:2:y:2013:i:15:p:25
    as

    Download full text from publisher

    File URL: http://oeconomica.uab.ro/upload/lucrari/1520132/25.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Baum, Anja & Koester, Gerrit B., 2011. "The impact of fiscal policy on economic activity over the business cycle - evidence from a threshold VAR analysis," Discussion Paper Series 1: Economic Studies 2011,03, Deutsche Bundesbank.
    2. Davig, Troy & Leeper, Eric M., 2011. "Monetary-fiscal policy interactions and fiscal stimulus," European Economic Review, Elsevier, vol. 55(2), pages 211-227, February.
    3. William F. Blankenau & Nicole B. Simpson & Marc Tomljanovich, 2007. "Public Education Expenditures, Taxation, and Growth: Linking Data to Theory," American Economic Review, American Economic Association, vol. 97(2), pages 393-397, May.
    4. Nina T Budina & Andrea Schaechter & Anke Weber & Tidiane Kinda, 2012. "Fiscal Rules in Response to the Crisis; Toward the "Next-Generation" Rules: A New Dataset," IMF Working Papers 12/187, International Monetary Fund.
    5. Martin Zagler & Georg Dürnecker, 2003. "Fiscal Policy and Economic Growth," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 397-418, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Florin-Cornel Popovici PhD student & Laura Nasta PhD student, 2015. "Use Of The European Union Financial Resources," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(25), pages 77-82, NOVEMBER.

    More about this item

    Keywords

    monetary policy; fiscal policy; economic growth;

    JEL classification:

    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:alu:journl:v:2:y:2013:i:15:p:25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dan-Constantin Danuletiu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.