EconPapers    
Economics at your fingertips  
 

Functional trinity of public finance in an emerging economy

Emilian Dobrescu ()

Journal of Economic Structures, 2018, vol. 7, issue 1, 1-27

Abstract: Abstract Two challenges in the literature have inspired this paper. First, the highly contradictory puzzle of debates on the “public budget–economic growth” correlation, explainable in great measure by the inadequacy of involved modeling tools (assumptions and specifications) with studied samples. Regarding this issue, the paper proposes three temporal scales of analysis: (1) the global historical trajectory of the modern society, concerning which the Wagner–Kaldor theorem has a leading explicative position; (2) the given structural state–society relationship, for which Barro–Armey–Rahn–Scully (BARS), Laffer in narrower sense (LINS), and the public budget balance restriction (BBR) curves are more suited; and (3) the short–medium horizon, where the Keynesian and post-Keynesian framework remains relevant. Another starting point of this paper refers to the second scale. While the BARS and LINS curves were extendedly examined, the BBR one benefited of attention only during the last period in the context of the sovereign debt crisis. Besides, all these functions were studied separately. Since in the real economy they interact continuously, we integrate BARS, LINS, and BBR curves into a unitary model with a “compatibility restriction” as technical solution. Data for an emergent medium-sized EU country (Romanian case study) illustrate this approach.

Keywords: Public budget; BARS; LINS; BBR; Collinearity; Compatibility restriction; Model simulations (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1186/s40008-018-0117-z Abstract (text/html)

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:spr:jecstr:v:7:y:2018:i:1:d:10.1186_s40008-018-0117-z

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40008

Access Statistics for this article

Journal of Economic Structures is currently edited by Shigemi Kagawa and Kazuhiko Nishimura

More articles in Journal of Economic Structures from Springer, Pan-Pacific Association of Input-Output Studies (PAPAIOS) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-04-09
Handle: RePEc:spr:jecstr:v:7:y:2018:i:1:d:10.1186_s40008-018-0117-z