The Public Expenditures and Economic Growth: DSGE model for Bosnia and Herzegovina

Nikolina Bošnjak
Additional contact information
Nikolina Bošnjak: Faculty of Economics, University of Rome “La Sapienza”, Italy

European Journal of Marketing and Economics Articles, 2023, vol. 6

Abstract: The DSGE (Dynamic Stochastic General Equilibrium) methodology attempts to explain the behavior of aggregate economic phenomena, such as economic growth, business cycle, and the effects of monetary and fiscal policy, using macroeconomic models derived from microeconomic foundations. DSGE models study the economy evolution (dynamics) over time. They take into consideration the fact that economy may be affected with random (stochastic) shocks. Still, they include all markets in the economy and assume that those markets balance out rapidly (general equilibrium). DSGE models have become the main tool of macroeconomic analysis, and until now, a huge number of different DSGE models have been developed. They are used for forecasting, different economic policies analysis and giving policy advices. Due to data scarcity and lack of knowledge, indevelopment and many other reasnos, until now there was no application of DSGE models to Bosnia and Herzegovina case. That is why we were motivated to calibrate a small size DSGE model for Bosnia and Herzegovina. In this research we will calibrate a small open economy DSGE model for Bosnia and Herzegovina and use its results to give some advices for economic growth of Bosnia and Herzegovina improvement. The special attention will be given to Public expenditures and TFP influence on Bosnian macroeconomic variables.

Keywords: The; Public; Expenditures; and; Economic; Growth:; DSGE; model; for; Bosnia; and; Herzegovina (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://brucol.be/index.php/ejme/article/view/7608 (text/html)
https://brucol.be/files/articles/ejme_v6_i2_23/nikolina.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eur:ejmejr:129

DOI: 10.26417/ejes.v6i1.p68-79

Access Statistics for this article

More articles in European Journal of Marketing and Economics Articles from Revistia Research and Publishing
Bibliographic data for series maintained by Revistia Research and Publishing ().