We provide a comprehensive survey of the recent literature on the link between productive government expenditure and economic growth. Starting with the seminal paper of Robert Barro (1990) we show that an understanding of the core results of the ensuing contributions can be gained from the study...

This paper investigates the impact of fiscal policy on profits using panel data for 19 high-income OECD countries during the period 1975-1999. We estimate a profit equation in which profits depend on a set of fiscal variables. Our empirical method is based on a consistent treatment of the...

Scholars have been active in investigating causes and consequences of austerity policies. We examine how economists use the term “austerity” in scientific studies and measure austerity in empirical analyses. The sample includes around 3,500 journal articles published in the top 400 journals...

France has a track record of persistent general government deficits, partly reflecting pro-cyclical fiscal policies in upswings. This has resulted in a quadrupling of its public debt-to-GDP ratio since the 1970s to above 80% of GDP. Reducing public debt is crucial because a high level of public...

Fiscal positions of African countries have improved significantly during the past decade. Higher economic growth, better terms of trade, improved donor support notably through debt relief and better control of expenditure contributed to this improvement. But at the same time government revenue...

In this article, our target is to analyze the effects of fiscal policy on GDP in Romania, using a model based on an unrestricted Vector Autoregression Model (VAR). We used in our research the quarterly data taken from the National Statistics Institute reports and Eurostat. The main independent...

The Stipulations of Treaty of Maastricht concerning the Monetary and Economic Union offer a new dimension to the politics of general taxation, by strict limitation of the governments’ possibility on financing the public outgoings by loans. The Accord for Steadiness and Development foresees...

Severely affected by the crisis, considered as the deepest one since the Great Depression between 1929-1933, the European Union’s economy has recorded the sharpest decline in its history starting with the end of 2007. In response to this downturn, interventions included implementing the...

Worldwide, over time, the years of economic crisis were defined by significant increases in the levels of budget deficits. Discussions on sizing budget deficits, financing, especially the volume of public debt became more intense, both politically and academically. The impact of budget deficit...

The goal of this paper is to discuss the joint analyses of fiscal, income and monetary policy in modifying aggregate spending. The paper is focused on the specific characteristics of aggregate demand depending on phases of economic cycle. Through this paper I also intend to emphasize that the...