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Theoretical and Applied Economics
No. 8 / 2008 (525)

Tax Politcy and Social Output: The UE Case

Ioan Talpos
Bogdan Dima
Mihai Ioan Mutascu
Cosmin Eugen Enache
Universitatea de Vest, Timisoara

Abstract. The aim of this paper is to emphasize how the correlations between fiscal policy and economic growth are manifesting in the UE case. After theoretical framework, the paper is organized as follows: Section 2 tries to provide a model at micro-economic level for the interconnections between fiscal policy and economic growth and Section 3 looks for same empirical evidences for the EU-25 case. Finally, some conclusions are drawn and some limits of the proposed analysis are derived in Section 4.

Keywords: fiscal policy; economic growth; effects; European Union

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