The Effects of Government Expenditure on the Output: A Real Business Cycle Analysis for the Romanian Economy

Radu Ștefan-Constantin ()
Additional contact information
Radu Ștefan-Constantin: National Institute of Economic Research, Romania

Studia Universitatis Babeș-Bolyai Oeconomica, 2023, vol. 68, issue 2, 55-72

Abstract: One of the most researched topics in macroeconomics is the development and implementation of Real Business Cycle models. This article presents a small Real Business Cycle model, which is built for the Romanian economy, with data from the 2nd quarter of 1995 through the 3rd quarter of 2022. The main aim of this analysis is to assess the historical influence of exogenous and government spending shocks on economic growth. In order to obtain accurate results, we implemented a Bayesian estimation technique for calculating the parameters of the model. The main findings indicate the significant exogenous shocks effect on the Romanian economy, and the way in which government spending had a positive effect on increasing economic growth for the period between the 1st quarter 2000 and the 3rd quarter of 2022.

Keywords: economic growth; real business cycle model; Romanian economy (search for similar items in EconPapers)
JEL-codes: E32 E60 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/subboec-2023-0009 (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:vrs:subboe:v:68:y:2023:i:2:p:55-72:n:1

DOI: 10.2478/subboec-2023-0009

Access Statistics for this article

Studia Universitatis Babeș-Bolyai Oeconomica is currently edited by Dumitru Matis

More articles in Studia Universitatis Babeș-Bolyai Oeconomica from Sciendo
Bibliographic data for series maintained by Peter Golla ().