Fiscal policy and economic growth: empirical evidence from EU countries
"This paper studies whether a reallocation of the components of public spending and revenues can enhance economic growth using data on 14 EU countries during 1990-2006. The results provide support for endogenous growth models. Specifically, the findings are: a) public expenditures on infrastruc...
| Main Author: | |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Munich
2009
MPRA |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19178115124919963979-Fiscal-policy-and-economic-gro.htm |
| _version_ | 1771659895240654851 |
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| author | Benos, Nikos |
| author_facet | Benos, Nikos |
| collection | Library items |
| description | "This paper studies whether a reallocation of the components of public spending and revenues can enhance economic growth using data on 14 EU countries during 1990-2006. The results provide support for endogenous growth models. Specifically, the findings are: a) public expenditures on infrastructure (economic affairs, general public services) and property rights protection (defense, public order-safety) exert a positive impact on growth; b) distortionary taxation depresses growth; c) government expenditures on human capital enhancing activities (education, health, housing-community amenities, environment protection, recreation-culture-religion) and social protection do not have a significant growth effect. However, when coefficient heterogeneity across countries along with non-linearities are taken into account and public expenditures are further disaggregated, we have in addition that government outlays on education, defense and social protection are growth-enhancing. These findings are robust to changes in specification and estimation methodology." |
| format | TEXT |
| geographic | EU countries |
| id | 19178115124919963979_c7df22bcd91d4b659736ad3acdf1d73b |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19178115124919963979_c7df22bcd91d4b659736ad3acdf1d73b |
| is_hierarchy_title | Fiscal policy and economic growth: empirical evidence from EU countries |
| language | English |
| physical | 29 p. Digital |
| publishDate | 2009 |
| publisher | Munich MPRA |
| spellingShingle | Benos, Nikos economic growth fiscal policy public expenditure statistics taxation Fiscal policy and economic growth: empirical evidence from EU countries |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=114663593284 |
| title | Fiscal policy and economic growth: empirical evidence from EU countries |
| topic | economic growth fiscal policy public expenditure statistics taxation |
| url | https://www.labourline.org/KENTIKA-19178115124919963979-Fiscal-policy-and-economic-gro.htm |