THE IMPACT OF FISCAL POLICY ON ECONOMY GROWTH

摘要

The purpose of this article is to analyze the impact of the fiscal shocks on the economic growth in Romania. Firstly, the article considers the total fiscal shock by using total government revenues and then it studies their structure. Three categories of revenues are used: distortionary taxation, non-distortionary taxation and other revenues. The first estimation is done by using a simple Vector Autoregressive model and the second is based on a Structural Vector Autoregressive model. The results indicate a positive impact if total revenues increase and a negative one when the groups of taxation are considered individually. Among the revenues’ categories, the most significant impact is obtained for distortionary taxation and other revenues.