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Impact of Fiscal Policy on the Cumulative Production in the Bulgarian Economy

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  • Maria Neycheva

Abstract

In the contemporary researches on fiscal policy the idea about Nonkeynesian effect is broadly debated. Contrary to the orthodox Keynesian paradigm this theory suggests a stimulating impact of budget consolidations on cumulative activity. The trends towards fiscal restrictions and balanced budget in the Eurozone stimulate the research on Nonkeynesian effects in the European countries. In connection with this the theoretical fundament and the results of the relevant empirical research are presented. A confirmation of the hypothesis for Nonkeynesian impact of the budget policy on the growth of GDP in the Bulgarian economy is sought.

Suggested Citation

  • Maria Neycheva, 2007. "Impact of Fiscal Policy on the Cumulative Production in the Bulgarian Economy," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 82-101.
    • Handle: RePEc:bas:econth:y:2007:i:3:p:82-101
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    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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