The aim of this article is to verify the effect of the effective tax burden and the economic growth on government spending in OECD countries for time period 2005 – 2010. From the methodological point of view, we use VAR model and generalized method of moments. The taxation is approximated by...

The article is focused on the mutual relationship among effective tax burden, size of government spending and economic growth. Its aim is to verify the effect of taxation and government spending on economic growth, but also to verify the effect of taxation and economic growth on the size of...