Naslov
Impact of public debt sustainability on fiscal policy in Croatia

Autori
Šimović, Hrvoje

Izvornik
Acta oeconomica (0001-6373) 68 (2018), 2; 231-244

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
public debt ; fiscal policy ; Croatia

Sažetak
This paper analyses the impact of public debt level and (un)sustainability on fiscal policy in Croatia in 2001-15 period. A switching regression approach is used to distinguish different regimes when government spending, i.e. fiscal policy has more or less impact on economic growth, regarding different cycle. In the second part, the structural VAR model is used to analyze the dynamic effects of government spending on domestic demand in Croatia. To observe the public debt effects on a fiscal policy, a “closed” model is compared with an “extended” model which includes debt- to-GDP indicator. Results show a negative impact of recession on public debt sustainability and confirm the main thesis that public debt level significantly affects and reduces the effectiveness of fiscal policy in Croatia.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA