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Heterogeneity Of Fiscal Policies

Author

Listed:
  • VODĂ Alina Daniela

    (Department of Doctoral Studies, Faculty of Economic Sciences, Lucian Blaga University, Sibiu, Romania)

  • DOBROTĂ Gabriela

    (Faculty of Economic Sciences, Constantin Brâncuși University, Târgu Jiu, Romania)

  • CRISTEA Loredana Andreea

    (Department of Doctoral Studies, Faculty of Economic Sciences, Lucian Blaga University, Sibiu, Romania)

Abstract

Understanding the functionality of fiscal policies, as well as its fundamental role in economic balancing, these are important aspects in terms of protecting and developing the business environment with obvious effects on social life. This study delves into the heterogeneity of fiscal policies to create a delimiting framework for them. The two types of fiscal policies, the discretionary or deliberative fiscal policy and the fiscal policy that act as an automatic stabilizer, were debated and detailed. The characteristics of the two types of policies are offered the way of using government revenues and expenditures as fiscal instruments. Thus, deliberative fiscal policies use instruments in directions strictly defined by the government in the sense of economic expansion or coercion. In contrast, fiscal policies that act as an automatic stabilizer do not require government intervention, acting by increasing the number of payments in times of recession and reducing them in times of economic expansion. Automatic stabilizers operate on the basis of state regulations, although their nature, size and effect have not yet been well defined in the empirical literature. The overall picture obtained in this study by researching the types of fiscal policies has allowed us to understand their functionality and the effects they can produce in the economy.

Suggested Citation

  • VODĂ Alina Daniela & DOBROTĂ Gabriela & CRISTEA Loredana Andreea, 2020. "Heterogeneity Of Fiscal Policies," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 257-264, December.
    • Handle: RePEc:ora:journl:v:1:y:2020:i:2:p:257-264
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    References listed on IDEAS

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    More about this item

    Keywords

    discretionary fiscal policy; automatic stabilizer; expansionary fiscal policy; contractionary fiscal policy;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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