POLITICS AND INTERJURISDICTIONAL TRANSFERS: THE ROMANIAN CASE

this paper represents a continuation of a previous paper where we demonstrated the “abnormal” behavior that local authority from Romania is manifesting regarding the subventions received from the central budget. In accord with public choice theory, exist an “affinity” of a social group - local communities in this case - for a certain political party or political coalition, in which case can expect that the distribution of public funds, having the nature of transfers given by the central budget to local budgets, to be impregnated with a considerable “political color”. This paper is trying to establish, in Romania, quantitative and qualitative, the modality of distributing the central public funds to local authorities under the political impact.politics, regional communities, interjurisdictional transfers

THE FISCAL POLICY AND THE STABILITY OF THE NOMINAL SECTOR: THE ROMANIAN CASE

The fiscal policies in the contemporaneous economic systems heavy influence both the real and nominal sectors. These effects could be located at the primary distribution of the social resources as will as at level their redistribution one. The aims of this paper are: (1) to review the literature of the main conceptual frameworks which link the fiscal policy and the dynamic of real sector, especially on the inflation side (2) to advance an empirical analyze of these link for the Romanian case and (3) to draw some conclusion about desirable framework of the fiscal policy for the current period in the perspective of Romanian access to European Union.Impact, inflation, fiscal policy, econometric analyze, fiscal deficit, budgetary sold

The Fiscal Policy and the Stability of the nominal Sector: The Romanian Case (revisited version)

The fiscal policies in the contemporaneous economic systems heavy influence both the real and nominal sectors. These effects could be located at the primary distribution of the social resources as will as at level their redistribution one. The aims of this paper are: (1) to review the literature of the main conceptual frameworks which link the fiscal policy and the dynamic of real sector, especially on the inflation side (2) to advance an empirical analyze of these link for the Romanian case and (3) to draw some conclusion about desirable framework of the fiscal policy for the current period in the perspective of Romanian access to European Union.Impact, inflation, fiscal policy, econometric analyze, fiscal deficit, budgetary sold

TAXES AND ECONOMIC GROWTH IN ROMANIA. A VAR APPROACH

The paper analyzes the relationship between taxes and economic growth in the case ofRomania in the period January 1999 - March 2010, using an unrestricted Vector AutoregressionModel (VAR) based on the rate of dynamic taxation’s level and the rate of dynamic economic growth.The relationship is questioned in both directions, namely with reference to the manner in which taxesaffect economic growth, but also in terms of the influence that economic growth exerts on taxes in thecase of Romania for the mentioned period. The results show that tax policy in Romania cannot be takento extremes, and should be very carefully implemented because a large amount of factors can influencethe resultstax, growth, VAR analysis, impulse functions, effects

AGENCY, ASSOCIATIONS AND CULTURE: A THALE OF STATE AND SOCIETY

The way in which the social subjects take decisions, the interactions established between these, the web of social institutions and rules, the architecture of the power relationships between the various “points of social coagulation” have as a foundation a complex set of determinants, in which the “pure” economic factors have an important, but not unique role. Thus, this paper intends to draft a possible analytical framework, capable of allowing the stress of some existing connections between the cultural variables, the social actions and the role of the public power. Heavy indebted to OLSON and NOZICK, the starting point is made out by a version of the mandate theory, within the way in which society, as a whole, as well as its individual components, delegates a certain set of social responsibilities to the public authorities, based on some social utility functions, which include the characteristics of the dominant cultural model. Part I of the paper deals with the elements of the theoretical foundation, elements resumed by a set of critical postulates and a special definition of state as the dominant agency in a social space and also of the negotiation/parallel associations. Part II is an attempt to examine some empirical evidences in the favor of some results derived from this foundation. The main conclusion of the paper could be resumed by the idea that trying to describe the interactions between state and society without taking into the account the characteristics of the cultural paradigm is equivalent to talk about Hamlet without mentioning the prince of Denmark.agency, negotiation/parallel associations, cultural paradigm

A NEW APPROACH OF THE BUDGET DEFICIT: AN EMPIRICAL ANALYSIS

Economic policies and, particularly, fiscal policies are not designed and implemented in an “empty space”: the structural characteristics of the economic systems, the institutional architecture of societies, the cultural paradigm and the power relations between different social groups, define the borders of these policies. This paper tries to deal with these borders, to describe their nature and the implications of their existence to the fiscal policies’ quality and impact at a theoretical level as well as at an empirical one. The main results of the proposed analysis support the ideas that the mentioned variables matters both for the social mandate entrusted by the society to the state and thus to role and functions of the state and for the economic growth as a support of the resources collected at distributed by the public authorities.budget deficit, structural characteristics, economic freedom, institutions, cultural paradigm, political freedom

Empirical Evidencies for the Budget Deficits Co-Integration in the Old European Union Members: Are there any Interlinkages in Fiscal Policies?

In the last years, the fiscal harmonization among the European Union members has become a pillar of economic integration and of fiscal and financial stability in the European area. The institutional changes, the semi-failure of the “old” Stability and Growth Pact as well as the recent waves of enlargements all these were put a greater emphasis on this issue inducing a higher pressure for fiscal discipline. In this context, the objective of the paper is to examines recent empirical evidences for bilateral and multilateral integration between fiscal policies, as this are synthesised by budget deficits, of old European Union members in the framework of the Johansen co-integration procedure with a preliminary appliance of the principal component analysis. The study finds that the dynamic of European fiscal policies takes place under the impact of some common driving forces which leads to a differentiate behaviour of two sub regional-groups individualized by the budget deficit series evolutionary patterns. Overall, it concludes that there could be find empirical evidences to support the thesis that a process of fiscal integration is currently running at least at the level of old European Union countries.Fiscal policies in E.U., budget deficits, co-integration, Johansen Test

A VAR analysis of FDI and wages: The Romania's case

According to Lall (1997), the FDI are strongly interconnected with a series of variables, such as: economic conditions (markets, natural resources, competitiveness), host country policies (macro policies, private sector, trade and industry, FDI policies), as well as MNE strategy (risk perception, location, sourcing of products/inputs, integration transfer). Recent studies have shown that the relationship FDI-Wages is significant and the two variables have one on one influence. More precisely, the low wages have the role to attract FDI and the high volume of FDI generates the increase of the wages on the destination's country labor market. Also, the FDI augmentations determine inequalities on the structure of the wages. The paper analyses the behavior of the relationships between the volume of FDI and the level of wages, in Romania, using an unrestricted vector autoregressive model (Unrestricted VAR). Based on the impulse functions generated by the model, some principal conclusions have resulted: (1) The impact of the FDI on the wages is not uniform during the year, depending usually on the FDI flow and also on the self-regulation way and reaction of the wages on the labor market; (2) The impact of the wages on the FDI is temporally sinuous in short term. In this situation, the FDI flow does not depend entirely on the signals received by investors regarding the level of wages in the destination country

A cultural model of performance at the central government level

The paper intends to draw a possible framework for evaluating the performance of the administration at the central government level. We propose a simple pool-data model in which we tried to make a connection between main macroeconomic variables that are in part the result of government actions in the pursuit of its social end economic objectives and some variables that are reflecting the social-cultural-political dimensions of government decisions.Performance, efficiency, government, culture, politics

THE CONNECTION BETWEEN RESOURCES AND ALLOCATIONS. THE BEHAVIOUR OF PUBLIC CENTRAL ADMINISTRATION: THE ROUMANIAN CASE

The aim of this paper is to emphasize how the correlations between public resources flows and their allocations are manifesting. The results obtained suggest the existence of some “fast” adjustment processes between them, inducted by the intrinsic characteristics of the fiscal policy, and also by the specific behaviour of Romanian public authorities, particularities traced by the way of adoption and application of the public decision.public revenues, public expenditures, public decision, impulse function