Panzaru, Ciprian; Belea, Sorin; Jianu, Laura - In: Economies : open access journal 13 (2025) 7, pp. 1-19
This study develops a dynamic IS-LM macroeconomic model that incorporates delayed taxation and a memory-dependent income effect, and calibrates it to quarterly data for Romania (2000-2023). Within this framework, fiscal policy lags are modelled using a "memory" income variable that weights past...