CEU Electronic Theses and Dissertations, 2014
| Author | Szigeti, Zoltán |
|---|---|
| Title | Evaluating the Use of Automatic Stabilization in Hungarian Fiscal Policy |
| Summary | This paper compares the effects of two types of fiscal rules: a fiscal rule that characterizes following Maastricht criteria in Hungary and a rule incorporating a more explicit form of automatic stabilization used in Bulgaria. To draw this comparison, I set up a real business cycle model in which a fraction of households is assumed to be liquidity constrained. I compute impulse responses of key variables to a government spending shock and I also report measures of output and consumption variability implied by the model. In addition, I review some of the empirical evidence on the evolution of fiscal policy variables and macroeconomic aggregates in the recent past in Bulgaria and Hungary. I also discuss differences in the institutional framework behind the budget process of the two countries as these are relevant for the enforceability of fiscal rules. |
| Supervisor | Kónya, István |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2014/szigeti_zoltan.pdf |
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