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Ciklicki prilagodeni proracunski saldo: primjer Hrvatske

Author

Listed:
  • Sandra Svaljek

    (The Institute of Economics, Zagreb)

  • Maruska Vizek

    (The Institute of Economics, Zagreb)

  • Andrea Mervar

    (The Institute of Economics, Zagreb)

Abstract

Cyclically adjusted government budget balance has often been used in the evaluation of fiscal stance. It indicates how much room fiscal authorities have to act anticyclically. The main idea is to separate temporary (cyclical) effects on the budget from those caused by discretionary measures of fiscal authorities. In this paper, after reviewing the concept, its applications and various methodological approaches, the size of cyclically adjusted budget balance is estimated in the case of Croatia for the period 1995:1q-2008:3q. Thereby, the ECB methodology is implemented and it is assumed that cyclically sensitive budget elements include income tax, profit tax, VAT, excise duties, social security contributions and unemployment benefits. The elasticities of cyclically sensitive budget components, with respect to their macroeconomic bases, are calculated with an error-correction model. The results of the exercise indicate that both periods of pro- and anticyclical fiscal policies have been present in the analyzed period with the restrictive and procyclical policy prevailing in the recent years.

Suggested Citation

  • Sandra Svaljek & Maruska Vizek & Andrea Mervar, 2009. "Ciklicki prilagodeni proracunski saldo: primjer Hrvatske," Working Papers 0901, The Institute of Economics, Zagreb.
    • Handle: RePEc:iez:wpaper:0901
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    File URL: https://hrcak.srce.hr/file/106603
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    Cited by:

    1. Hrvoje Simovic & Milan Deskar-Skrbic, 2013. "Dynamic effects of fiscal policy and fiscal multipliers in Croatia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 31(1), pages 55-78.

    More about this item

    Keywords

    fiscal policy; government budget; cyclical adjustment; Croatia;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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