<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The paper evaluates the size of the cyclical and structural components of the fiscal deficit of the Republic of Serbia for the period from the first quarter of 2002 to the second quarter of 2014. The method of the European Central Bank was used, where it is assumed that cyclically sensitive elements of state are budget income tax, profit tax, value added tax on the value, excises, social security contributions and unemployment benefits. Elasticity of cyclically sensitive elements relative to their macroeconomic bases are estimated using the VEC model with error correction. The results suggest that automatic stabilizers generally played a more prominent role than consistent countercyclical discretionary fiscal policy, which means that the discretionary measures were late or were not well targeted.</p></abstract>

The paper evaluates the size of the cyclical and structural components of the fiscal deficit of the Republic of Serbia for the period from the first quarter of 2002 to the second quarter of 2014. The method of the European Central Bank was used, where it is assumed that cyclically sensitive elements of state are budget income tax, profit tax, value added tax on the value, excises, social security contributions and unemployment benefits. Elasticity of cyclically sensitive elements relative to their macroeconomic bases are estimated using the VEC model with error correction. The results suggest that automatic stabilizers generally played a more prominent role than consistent countercyclical discretionary fiscal policy, which means that the discretionary measures were late or were not well targeted.

Empirical Evaluation of the Fiscal Position in Serbia

University of Nis, Faculty of Economics, Republic of Serbia

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Empirical Evaluation of the Fiscal Position in Serbia"}

The paper evaluates the size of the cyclical and structural components of the fiscal deficit of the Republic of Serbia for the period from the first quarter of...

Empirical Evaluation of the Fiscal Position in Serbia

Published Online: Jul 26, 2016

Page range: 217 - 232

Received: Jan 26, 2016

Accepted: May 18, 2016

DOI: https://doi.org/10.1515/ethemes-2016-0011

Keywords
cyclic deficit, structural deficit, GDP

© 2016

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Empirical Evaluation of the Fiscal Position in Serbia

Published Online: Jul 26, 2016

Page range: 217 - 232

Received: Jan 26, 2016

Accepted: May 18, 2016

DOI: https://doi.org/10.1515/ethemes-2016-0011

Keywordscyclic deficit, structural deficit, GDP

© 2016

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
cyclic deficit, structural deficit, GDP