Preliminary communication

https://doi.org/10.18045/zbefri.2018.1.287

Austerity policies, economic growth and fiscal balance: lessons from Slovenia

Petra Došenović Bonča ; Faculty of Economics, University of Ljubljana, Ljubljana, Slovenia
Maks Tajnikar ; aculty of Economics, University of Ljubljana, Ljubljana, Slovenia

Abstract

The authors investigate the impact of austerity policies by empirically analysing the crowding out eJect, the Ricardian equivalence principle, and the eJect of domestic competitiveness on economic growth in Slovenia. Using the narrative method, the authors researched determinants of economic growth and the impact of fiscal policies on the empirical relationship between state debt and economic growth. The authors show that Slovenia has executed austerity measures over short time periods only, and argue that one cannot find convincing evidence that the enacted austerity policy created the theoretically and empirically expected eJects. The authors show that the revival of economic growth was independent of enacted austerity policies. Such economic growth has also benefitted the general budget balance and fiscal position of Slovenia.

Keywords

austerity policy; growth; state debt; Slovenia

Hrčak ID:

202044

URI

https://hrcak.srce.hr/202044

Publication date:

26.6.2018.

Article data in other languages: croatian

Visits: 1.869 *