Emil Dinga1
Abstract. The paper is a theoretical approach to the general concept of reaction and, as a species of that, of the concept of fiscal reaction. To this end, some formalizations are made to indicate the two targets of the fiscal reaction: an autonomous target and an induced one from the wider economic environment. Further, a typology of the fiscal reaction functions is proposed and examined from the two perspectives: subsistence and sustainability of the fiscal process. In this context, the budget deficit is split into three components, each of them with its own rationale, in order to establish the „true” component obeying the fiscal reaction function
phenomenology.
Keywords: reaction function, responsible public debt, fiscal reaction function, fiscal target, public debt multiplier, ratchet effect,
sustainability.
DOI 10.56082/annalsarscieco.2026.1.27
1 Centre for Financial and Monetary Research „Victor Slăvescu”, Romanian Academy, Romanian House, Building West, Floor 5, Room 5715, Romania, ORCID No. 0000-0002-3750-3248, Academy of Romanian Scientists; Corresponding author, emildinga2004@gmail.com
PUBLISHED in Annals Academy of Romanian Scientists Series on Economy, Law, Sociology, Volume 9 no 1, 2026