Afonso, António; Tovar-Valles, João - ISEG - School of Economics and Management, Department … - 2011
We construct a growth model with an explicit government role, where more government resources reduce the optimal level …-2008, we use different proxies for government size and institutional quality. Our results, consistent with the presented growth … model, show a negative effect of the size of government on growth. Similarly, institutional quality has a positive impact on …