Original scientific paper
https://doi.org/10.1080/1331677X.2015.1106330
Discretionary vs nondiscretionary in fiscal mechanism – nonautomatic fiscal stabilisers vs automatic fiscal stabilisers
Vasile Brătian
Amelia Bucur
Camelia Oprean
orcid.org/0000-0003-3492-2401
Cristina Tănăsescu
Abstract
The goal of the present study is to increase the intelligibility of
macroeconomic phenomena triggered by governmental intervention
in economy by means of fiscal policies. During cyclical movements,
fiscal policy can play an important role in order to help stabilise the
economy. But discretionary policy usually implies implementation lags
and is not automatically reversed when economic conditions change.
In contrast, automatic fiscal stabilisers (SFA) ensure a prompter, and
self-correcting fiscal response. The present study aims to tackle the
topic of discretionary vs nondiscretionary characteristic of fiscal
stabilisers (SF). In this context, the scope of the research undertaking
is to launch a scientific debate over the definitions of the concepts
of non-automatic fiscal stabilisers (SfnA) and SFAs. We describe how
we can quantify the discretionary and non-discretionary character of
the fiscal policy, by the analysis of the structure of the conventional
budget balance (SBc), budget balance associated with the current
GDP. In the final part of this article, we propose a quantitative
equilibrium model for establishing the mathematical prerequisites
for an SF to become automatic. Likewise, on the basis of the proposed
mathematical model we have performed a qualitative analysis of the
influence factors.
Keywords
Fiscal policy; fiscal mechanism; non-automatic fiscal stabilisers (SfnA); automatic fiscal stabilisers (SFA)
Hrčak ID:
171707
URI
Publication date:
22.12.2016.
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