Fiscal Policy and Economic Growth - the Crisis Aftermath
Fiscal Policy and Economic Growth - the Crisis Aftermath

Summary/Abstract: The purpose of this study is to analyze the effectiveness of government spending and net taxes in Bulgaria for the period after the recent crisis. An empirical evaluation is based on two approaches. First, the ARDL analysis based on the Index of industrial production monthly data shows that the long term multiplier effects are valued 1.35 for spending, and close to 0.7 for net taxes. Second, using SVAR robust check based on GDP data the estimated values of the first-year multipliers are respectively 0.5 and 0.2 while the cumulative impact effect reaches up to 0.8 and 0.4.

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