MODEL AND RESULTS OF A STRESS TEST ON PUBLIC FINANCE – ANALYSIS AND COMPARISON WITH THE MODEL OF THE MINISTRY OF FINANCE
Authors
Keywords
public finance, output gap, cyclically-adjusted budget balance, stress test, impulse-response function
The article presents a model for calculating the production gap to obtain the cyclically-adjusted budget balance (CAB), which is then used to conduct a stress test with the production gap values to track the reaction of CAB in terms of the Impulse-Response Function in EViews.
JEL: H62, H68, Ñ52, Ñ58Pages: 20
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