Capital markets can improve risk sharing and the efficiency with which capital is allocated to the real economy, boosting economic growth and welfare. However, despite these potential benefits, not all countries have well developed capital markets. Moreover, government-led initiatives to develop...

The methodological issues and econometric problems in the empirical assessment of the determinants of growth are systematically reviewed in the first part of the paper by Hiebert, Lamo, de Ávila and Vidal. In the second part, the authors assess empirically the long-run effects of fiscal policy...

The objective of the paper is to point out the impact of public finances in the context of the Lisbon growth strategy. Official communications from the Commission and ECOFIN Council note that public finances can contribute to achieving the goal of higher growth and employment via three...