Arbeitspapier
The "Armey Curve" in Bulgaria (2000-18): Theoretical Considerations and Empirical Results
In this paper we provide a theoretical basis for the so-called "Armey curve," the inverted U-shape relationship between the level of government purchases and GDP growth, named after Armey (1995). We use an otherwise standard Keynesian model, augmented with a quadratic relationship between investment and lagged government expenditure, which was documented empirically. This modelling approach is a useful shortcut that aims to capture the common link shared by both variables, namely their dependence on the real interest rate, as suggested also by the extended static IS-LM model. This resulting dynamic relationship is a newly-documented stylized fact, at least in Bulgarian data for the period 2000-2018, and the source in the extended Keynesian model that generates an Armey curve for Bulgaria.
- Sprache
-
Englisch
- Klassifikation
-
Wirtschaft
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Investment; Capital; Intangible Capital; Capacity
- Thema
-
Armey curve
GDP growth
government purchases
Bulgaria
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Vasilev, Aleksandar
- Ereignis
-
Veröffentlichung
- (wer)
-
ZBW – Leibniz Information Centre for Economics
- (wo)
-
Kiel, Hamburg
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Vasilev, Aleksandar
- ZBW – Leibniz Information Centre for Economics
Entstanden
- 2019
Ähnliche Objekte (12)
The Armey Curve in Bulgaria (2000-18) – Theoretical Considerations and Empirical Results
VAT Evasion in Bulgaria: A General-Equilibrium Approach
A Real-Business-Cycle model with robots: Lessons for Bulgaria
Are "fair" wages quantitatively important for business cycle fluctuations in Bulgaria?
Business Cycles in Bulgaria and the Baltic Countries: An RBC Approach
Business Cycles in Bulgaria and the Baltic Countries: An RBC Approach
Are "fair" wages quantitatively important for business cycle fluctuations in Bulgaria?
Is military spending quantitatively important for business cycle fluctuations in Bulgaria
The welfare effect of flat income tax reform: the case of Bulgaria
Are habits important for the propagation of business cycle fluctuations in Bulgaria?
Search and matching frictions and business cycle fluctuations in Bulgaria: Technical Appendix
Determining the Investment Impact of Bulgaria’s 2007-08 Income Tax Reforms
The Armey Curve in Bulgaria (2000-18) – Theoretical Considerations and Empirical Results
VAT Evasion in Bulgaria: A General-Equilibrium Approach
A Real-Business-Cycle model with robots: Lessons for Bulgaria
Are "fair" wages quantitatively important for business cycle fluctuations in Bulgaria?
Business Cycles in Bulgaria and the Baltic Countries: An RBC Approach
Business Cycles in Bulgaria and the Baltic Countries: An RBC Approach
Are "fair" wages quantitatively important for business cycle fluctuations in Bulgaria?
Is military spending quantitatively important for business cycle fluctuations in Bulgaria
The welfare effect of flat income tax reform: the case of Bulgaria
Are habits important for the propagation of business cycle fluctuations in Bulgaria?
Search and matching frictions and business cycle fluctuations in Bulgaria: Technical Appendix
Determining the Investment Impact of Bulgaria’s 2007-08 Income Tax Reforms
The Armey Curve in Bulgaria (2000-18) – Theoretical Considerations and Empirical Results
VAT Evasion in Bulgaria: A General-Equilibrium Approach
A Real-Business-Cycle model with robots: Lessons for Bulgaria
Are "fair" wages quantitatively important for business cycle fluctuations in Bulgaria?
Business Cycles in Bulgaria and the Baltic Countries: An RBC Approach
Business Cycles in Bulgaria and the Baltic Countries: An RBC Approach
Are "fair" wages quantitatively important for business cycle fluctuations in Bulgaria?
Is military spending quantitatively important for business cycle fluctuations in Bulgaria
The welfare effect of flat income tax reform: the case of Bulgaria
Are habits important for the propagation of business cycle fluctuations in Bulgaria?
Search and matching frictions and business cycle fluctuations in Bulgaria: Technical Appendix