The Armey Curve in Bulgaria (2000-18) – Theoretical Considerations and Empirical Results

Artikel

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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Theoretical and Practical Research in Economic Fields ; ISSN: 2068-7710 ; Volume: 11 ; Year: 2020 ; Issue: 1(21) ; Pages: 19-24 ; Craiova: ASERS

Klassifikation und Themen

• Klassifikation: Wirtschaft ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Investment; Capital; Intangible Capital; Capacity
• Thema: Armey curve ; GDP growth ; government purchases ; Bulgaria

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Vasilev, Aleksandar
• Ereignis: Veröffentlichung
• (wer): ASERS
• (wo): Craiova
• (wann): 2020

Weitere Informationen

• DOI: doi:10.14505/tpref.v11.1(21).02
• Handle: http://hdl.handle.net/10419/222007
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ