To fulfil their tasks, governments rely on public expenditures and taxes. Both influence the incentives and shape the decisions and actions of private economic agents. As governments resort to both instruments simultaneously, their combined theoretical impact on economic performance is a priori...

The EU's Lisbon strategy of 2000 (renewed in 2005) calls for substantial improvements in the quality and sustainability of public finance. In this context, the current study concentrates on the growth potential of public expenditures. National Reform Programs are analyzed in order to draw...

To fulfill their tasks, governments rely on public expenditures and taxes. Both influence the incentives and shape the decisions and actions of private economic agents. As governments resort to both instruments simultaneously, their combined theoretical impact on economic performance is a priori...