6533b7d7fe1ef96bd1268435
RESEARCH PRODUCT
The effects of fiscal policy shocks on the business environment
Alina Daniela VodăDănuț Dumitru DumitrașcuGabriela Dobrotasubject
Economics and Econometricsautoregressive distributed lag modelHF5001-6182business environmentMonetary economicsFiscal policyBusiness environmentconvergence ratesEconomicsBusiness Management and Accounting (miscellaneous)Businessmacroeconomic variablesimpulse response functionfiscal policydescription
Fiscal policy influences economic conditions through public spending and taxes, generating positive or negative impulses, both on short and long term. The present research focuses on analysing the effects of the discretionary changes in the fiscal policy in seven post-communist countries of the European Union during the period 2000–2018. The autoregressive distributed lag model (ARDL) has been applied in order to obtain the convergence rates to equilibrium with a clear analysis of the periods needed to achieve the long-run fiscal sustainability. Also, the error correction vector model (VECM), which is based on the autoregressive vector (VAR) model, has been used in the second part of the analysis focusing on the Cholesky factorization of innovations. Impulse-response functions aiming to estimate the response of government expenditures to the shock produced by three macroeconomic variables have been identified.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2021-08-25 | Journal of Business Economics and Management |