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Original scientific paper

Dynamic effects of fiscal policy and fiscal multipliers in Croatia

Hrvoje Šimović orcid id orcid.org/0000-0002-4040-0899 ; Faculty of Economics & Business, University of Zagreb, Zagreb, Croatia
Milan Deskar-Škrbić orcid id orcid.org/0000-0002-7611-2071 ; Arhivanalitika d.o.o., Zagreb, Croatia


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Abstract

The aim of this paper is to analyze the effects of discretionary measures of fiscal policy on the economic activity and to estimate the size of fiscal multipliers in Croatia. Econometric framework is based on the structural VAR model (SVAR), with Blanchard-Perotti identification method that uses information on institutional characteristics of fiscal system. The analysis is conducted on quarterly data for total expenditures and indirect taxes of central, central consolidated and general consolidated government and aggregate demand for the period from 2004-2012. The results show that our initial assumptions about the difference in the size of the multiplier of government expenditures and indirect tax revenues between three levels of government consolidation have been confirmed.

Keywords

Fiscal policy, fiscal multipliers, SVAR, Croatia

Hrčak ID:

104184

URI

https://hrcak.srce.hr/104184

Article data in other languages: croatian

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