EFZG working paper series, No. 06, 2014.
Ostalo
Possibilities and Limitations of Fiscal Policy in Croatia
Hrvoje Šimović
orcid.org/0000-0002-4040-0899
; Ekonomski fakultet - Zagreb
Tomislav Ćorić
; Ekonomski fakultet - Zagreb
Milan Deskar-Škrbić
orcid.org/0000-0002-7611-2071
Sažetak
This paper analyzes the possibilities and limitations of fiscal policy in Croatia. Firstly, we analyze important limitations of fiscal policy such as lack of coordination of fiscal and monetary policy, inadequate budget planning, increasing tax pressure, the size and structure of public expenditures and deficit financing problems. In the central part of the analysis we empirically estimate the possibilities of stabilizing role of fiscal policy by analyzing the impact of general government revenues and expenditures on GDP growth. For this purpose we develop a structural VAR model to evaluate the impact of various components of public expenditures and revenues on economic growth in Croatia. Further, fiscal policy possibilities are synthesized through the proposed measures of so-called “smart fiscal consolidation” which is the foundation for achieving the stabilizing role of fiscal policy.
Ključne riječi
Fiscal policy; expenditure multipliers; tax multipliers; economic growth; smart fiscal consolidation; Croatia
Hrčak ID:
136626
URI
Datum izdavanja:
11.11.2014.
Posjeta: 3.826 *