Public finances and long-term growth in Europe: Evidence from a panel data analysis
This paper addresses the question whether public finance reform can affect trend growth in the EU-15. Focusing on time series patterns, we investigate whether there have been persistent trends in economic growth and fiscal variables over the last 40Â years. In addition, we estimate a distributed lag model, which 1) indicates that government size measured either with total expenditure or revenue shares, government consumption and direct taxation negatively affect growth rates of GDP per capita, while public investment has a positive impact, and 2) provides robust evidence that distortionary taxation affects growth in the medium-term through its impact on the accumulation of private capital.
Year of publication: |
2008
|
---|---|
Authors: | Romero-Ávila, Diego ; Strauch, Rolf |
Published in: |
European Journal of Political Economy. - Elsevier, ISSN 0176-2680. - Vol. 24.2008, 1, p. 172-191
|
Publisher: |
Elsevier |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Public finances and long-term growth in Europe : evidence from a panel data analysis
Romero-Ávila, Diego, (2008)
-
Public finances and long-term growth in Europe : evidence from a panel data analysis
Romero-Ávila, Diego, (2003)
-
Public finances and long-term growth in Europe: Evidence from a panel data analysis
Romero-Ávila, Diego, (2008)
- More ...