IDEAS home Printed from https://ideas.repec.org/a/agr/journl/v3(520)y2008i3(520)p13-28.html
   My bibliography  Save this article

The Estimation of the Structural Budgetary Deficit for Romania in the Context of Accession to the Euro Zone

Author

Listed:
  • Aura-Gabriela Socol
  • Bogdan Chiriacescu

    (Academy of Economic Studies, Bucharest)

Abstract

Romania is preparing to enter a superior stage of integration - the admission in the euro zone. In this context, the study estimates the structural budgetary deficit, considering it as being one of the most relevant indicators to evaluate the performance of the fiscal management, as well as the degree to which the Romanian fiscal policy is ready to act as a single instrument capable of stabilizing the national economy after the Euro zone admission. The paper is structured as follows: (i) estimating the potential GDP and the output gap by the production function approach and by using the Hodrick-Prescott filter; (ii) estimating the budgetary cyclical deficit based on the sensitivity of the deficit (using the elasticities of government revenues and expenditures in relation to GDP) and the level of the output gap and, afterwards, the structural budgetary component; (iii) conclusions and recommendations.

Suggested Citation

  • Aura-Gabriela Socol & Bogdan Chiriacescu, 2008. "The Estimation of the Structural Budgetary Deficit for Romania in the Context of Accession to the Euro Zone," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 3(3(520)), pages 13-28, March.
    • Handle: RePEc:agr:journl:v:3(520):y:2008:i:3(520):p:13-28
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/290.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=290&rid=35
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:3(520):y:2008:i:3(520):p:13-28. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.