Fiscal Reaction Function: An Empirical Model for Bulgaria

Ivailo Beev () and Ivan Todorov ()
Additional contact information
Ivailo Beev: University of National and World Economy, Sofia, Bulgaria
Ivan Todorov: University of National and World Economy, Sofia, Bulgaria

Nauchni trudove, 2019, issue 5, 187-201

Abstract: The study presents the systematic response of fiscal policy to public debt developments, aiming to reveal its crucial importance in determining whether the debt-to-GDP dynamics leads to a desired equilibrium or not. On this basis, we will show that the values of the debt-to-GDP ratio in Bulgaria close to 55-60% are an acceptable boundary where debt can be considered as manageable and sustainable. These calculations contribute as they give new directional ideas when measuring the fiscal effects of fiscal policy, they can also serve as an anchor for various stress testing scenarios as well as an analysis of the social expenditures outweighing in the future.

Keywords: fiscal reaction function, public debt; deficits (search for similar items in EconPapers)
JEL-codes: H62 H63 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://unwe-research-papers.org/bg/journalissues/article/10212 (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:nwe:natrud:y:2019:i:5:p:187-201

Access Statistics for this article

More articles in Nauchni trudove from University of National and World Economy, Sofia, Bulgaria Contact information at EDIRC.
Bibliographic data for series maintained by Vanya Lazarova ().