Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/54617
Authors: 
Vladimirov, Vladimir
Neicheva, Maria
Year of Publication: 
2008
Citation: 
[Journal:] IBSU Scientific Journal (IBSUSJ) [ISSN:] 1512-3731 [Volume:] 2 [Year:] 2008 [Issue:] 1 [Pages:] 7-22
Abstract: 
The study sheds light on the stabilizing role of government budget. It finds that in Bulgaria both taxes and government spending are negatively related to the real growth rate. This leads to the conclusion that budgetary expenditure influence output in a non-Keynesian fashion. The size of discretionary fiscal impulse is the main determinant of the non-Keynesian outcome. The results imply that although the balanced budget ensures the sustainability of public finances, it does not guarantee a growth-stimulating effect in case of a large government sector. Abstention from an active fiscal policy would allow the automatic stabilizers to operate freely and to counteract the negative shocks to the economy.
Subjects: 
government budget
stabilizing fiscal policy
Keynesian
non-Keynesian effects
Document Type: 
Article
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