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Peer-reviewed articles in economics, finance, public policy, and sustainable development.

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Theoretical and Applied Economics
No. 2 / 2017 (611), Summer

The role of fiscal policy in the financial crisis. Challenges and solutions

Aura Gabriela SOCOL
The Bucharest University of Economic Studies, Romania
Roxana Mirela FERARU
The Bucharest University of Economic Studies, Romania

Abstract. Since the financial crisis was an economic shock with a considerable unfavorable fiscal component, the prospect of maintaining the sustainability of public finances was a challenge for each country. This study aims to examine the extent to which Central and Eastern European (CEE) countries have been able to acquire or maintain a sustainable fiscal stance both before and during the crisis by empirically estimating three fiscal reaction functions (FRF). Thus, the nature of the fiscal policy promoted within the CEE states, the degree of fiscal sustainability, the persistence of the promoted fiscal behavior and the degree of fiscal discretionism are identified. The results confirm statistically relevant parameters for all three FRFs estimated, indicating the sustainability of public finances in CEE countries, despite the developments implied by the economic crisis.

Keywords: fiscal reaction function, fiscal policy, panel regression, fiscal sustainability, Central and Eastern European countries.

Contents

1

The role of fiscal policy in the financial crisis. Challenges and solutions

Aura Gabriela SOCOL · Roxana Mirela FERARU

2

Using the input-output model in macroeconomic analysis and forecasting studies

Constantin ANGHELACHE · Alexandru MANOLE · Mădălina-Gabriela ANGHEL

3

Panel causality analysis between exchange rates and stock indexes for fragile five

Mehmet PEKKAYA · Ersin AÇIKGÖZ · Veli YILANCI

4

Modeling of stock indices with HMM-SV models

E.B. NKEMNOLE · J.T. WULU

5

The impact of private sector credit on income inequalities in European Union (15 member states)

Ionuţ JIANU

6

Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis

Ceyhun Can OZCAN · Murat ASLAN · Saban NAZLIOGLU

7

The main correlations between the monetary-banking indicators

Mădălina-Gabriela ANGHEL · Constantin ANGHELACHE · Ana CARP

8

Impact of governance on budget deficit in developing countries

Salih BARIŞIK · Abdullah BARIS

9

Private equity market developments in central and Eastern Europe

Mihaela DIACONU

10

Public-Private Partnerships for clean energy investment in developing and emerging economies: Allocating risks and sharing rewards

Hilmar Þór HILMARSSON

11

Science is measurement, yet not all sciences can be evaluated using the same measurement

Vlad NERĂU

12

The effects of real exchange rates and income on the trade balance: A second generation panel data analysis for transition economies and Turkey

Sevgi SEZER

13

Child policy changes and estimation of income distribution effects

Eva MILITARU · Amalia CRISTESCU

14

An enquiry into the dynamics of real oil prices: A state space approach

Jaweriah HAZRANA · Aaisha NAZRANA

15

Wage inequalities in Romania under successive adjustments in minimum wage levels

Mădălina Ecaterina POPESCU · Eva MILITARU

16

An examination of bilateral J-curve: Evidence from Turkey and her 20 major trading partners

Şerife ÖZŞAHİN

17

Do military expenditures converge in NATO countries? Linear and nonlinear unit root test evidence

Selahattin GÜRİŞ · Burak GÜRİŞ · Muhammed TIRAŞOĞLU

18

Impact of GDP and tax revenue on health care financing: An empirical investigation from Indian states

Deepak Kumar BEHERA · Umakant DASH

19

The relation between foreign direct investments and some economic indicators. The case of Romanian economy

Mirela PANAIT · Cătălin VOICA

20

Economic freedom and foreign direct investment in South Asian countries

Sadia IMTIAZ · Malik Fahim BASHIR

21

New software for identification and evaluation of environmental and waste management in the companies

Rodica BUCUROIU · Marius Gabriel PETRESCU

22

An analysis of the effect of monetary policy changes on macroeconomic factors

Moid U. AHMAD · Shamima NASRIN

23

The costs of Brexit for UK economy

Andrei HREBENCIUC