THE IMPACT OF FISCAL AND BUDGETARY POLICIES ON THE UNEMPLOYMENT RATE IN THE EU MEMBER STATES
The tax system is one of the main tools by which a State exercises sovereignty through the collection, allocation and redistribution of revenues in a given territory. This paper aims to highlight how the characteristics of tax systems, in the Member States of the European Union, affect the unemplo...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Academica Brâncuşi
2015-03-01
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| Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
| Subjects: | |
| Online Access: | http://www.utgjiu.ro/revista/ec/pdf/2015-01.Volumul%202/32_Dronca,%20Arjocu.pdf |
| Summary: | The tax system is one of the main tools by which a State exercises sovereignty through the collection,
allocation and redistribution of revenues in a given territory. This paper aims to highlight how the characteristics of
tax systems, in the Member States of the European Union, affect the unemployment rate.
To achieve this goal, indicators for the 28 Member States of the European Union for the period 2004-2012
where used in the study. Starting with an analysis of panel data models, developed using a range of indicators specific
for tax systems (budget revenues, budget expenditures, public investment, direct taxes, indirect taxes and social
contributions),as exogenous variables and the unemployment rate, as an endogenous variable. The results show that
the fiscal and budgetary policies of EU Member States can play a positive role in reducing unemployment, provided
that their application and use will meet certain standards and performance criteria and do not harm business. |
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| ISSN: | 1844-7007 1844-7007 |