Effects of Fiscal Policy in Romania. The results of an empirical study based on a VAR type model

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 variables that we have included in our study are: private consumption, governmental debt, gross fixed capital formation, inflation, ROBOR interest rate, governmental consumption and gross domestic product. We have identified the effects of fiscal policy in Romania on the size of GDP after using the impulse function for the VAR type model.