Budgetary Policies in Eastern European Countries

AbstractThe article aims to determine the optimal mix of public expenditure and its impact on economic growth for east European countries before and during the economic crisis. In order to achieve our objective we conducted a study on a sample of 5 CEE countries: Bulgaria, Croatia, Hungary, Romania and Slovenia for a 10 years period of time using the BARS curve model. Taking into consideration the fundamental differences between public investment policies pre and during the crisis we split our analysis in two distinct periods of time: 1992-2007 respectively 2008-2012. The results of our study consist in the identifications of optimal points of public expenses for each country in particular considering its specificity