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The Impact Of Fiscal Policy On Economy Growth

Author

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  • Iulia ROȘOIU

    (Academy of Economic Studies, Bucharest, Romania)

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.

Suggested Citation

  • Iulia ROȘOIU, 2019. "The Impact Of Fiscal Policy On Economy Growth," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 20, pages 109-115, September.
    • Handle: RePEc:cmj:seapas:y:2019:i:20:p:109-115
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    More about this item

    Keywords

    Fiscal shock; Revenues structure; Simple VAR model; Structural VAR model;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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