Functional trinity of public finance in an emerging economy

摘要: Two challenges in the literature have inspired this paper. First, highly contradictory puzzle of debates on “public budget–economic growth” correlation, explainable great measure by inadequacy involved modeling tools (assumptions and specifications) with studied samples. Regarding issue, paper proposes three temporal scales analysis: (1) global historical trajectory modern society, concerning which Wagner–Kaldor theorem has a leading explicative position; (2) given structural state–society relationship, for Barro–Armey–Rahn–Scully (BARS), Laffer narrower sense (LINS), public budget balance restriction (BBR) curves are more suited; (3) short–medium horizon, where Keynesian post-Keynesian framework remains relevant. Another starting point refers to second scale. While BARS LINS were extendedly examined, BBR one benefited attention only during last period context sovereign debt crisis. Besides, all these functions separately. Since real economy they interact continuously, we integrate BARS, LINS, into unitary model “compatibility restriction” as technical solution. Data an emergent medium-sized EU country (Romanian case study) illustrate approach.