Estimating the Impact of Government Consumption on Growth: Growth Accounting and Endogenous Growth Models.
Panel data is analyzed on government consumption and C-DP growth in 116 countries, 1950-90. The purported positive impact of government growth on GDP growth is due to simultaneity bias. The negative cross-national correlation between government size and economic growth reflects in part an equilibrium relationship. Growth is a non-monotonic function of government size (measured at current domestic paces). Growth rates are increasing in government consumption expenditures up to a level around 12 percent of GDP.
Year of publication: |
1996
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Authors: | Dowrick, Steve |
Published in: |
Empirical Economics. - Department of Economics and Finance Research and Teaching. - Vol. 21.1996, 1, p. 163-86
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Publisher: |
Department of Economics and Finance Research and Teaching |
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