In this paper, we compare growth and welfare effects of various budget rules within an endogenous growth model with productive public capital, utility enhancing public consumption and public debt. We find that a fixed deficit regime does not affect the long run growth rate compared to a balanced...

This paper explores the factors behind the time path of real spending and revenue in the West German states from 1975 to 2004. The empirical approach stresses robustness and takes into account a large set of economic and political variables. Our results suggest that common economic factors and,...

This paper studies the determinants of economic growth and the role of the public budget in European Union (EU) member states in Central and Eastern Europe, that joined the European Union in 2004, with a balanced data set from 1996 until 2012. A special focus is set on the relationship between...

Most parts of the Euro area have seen seven years of deep economic crisis. The strategy of tightening the fiscal constraints of the SGP has driven many member states into austerity. In contrast, the golden rule of public investment proposed in this study would be one important element of the...

This paper explores the factors behind the time path of real spending and revenue in the West German states from 1975 to 2004. The empirical approach stresses robustness and takes into account a large set of economic and political variables. Our results suggest that common economic factors and,...

This article empirically examines the fiscal policy elements affecting economic growth in 27 European countries and Switzerland (Without the United Kingdom). The research objective is to estimate the impact of macroeconomic variables such as tax revenue, government expenditure and public debt on...

In this paper, we compare growth and welfare effects of various budget rules within an endogenous growth model with productive public capital, utility enhancing public consumption and public debt. We find that a fixed deficit regime does not affect the long run growth rate compared to a balanced...

Private investment is the principal transmission channel through which fiscal policy affects growth in high-income countries. In low-income countries, governance and also other considerations suggest that the primary channel is factor productivity. Empirical results reported in this paper...

The effect of public investment on economic growth is a crucial public policy issue. Empirical research into this question was stimulated by Aschauer (1989), who suggested that public capital has a powerful impact on the productivity of private capital.Aschauer's results were controversial and...

In this paper we analyze the influence of several types of fiscal policies on the process of economic growth, namely on the rate of growth of consumption.We formulate and analyze two types of economic growth models. The first refers to the way in which a consumer-producer agent takes decisions...