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This paper investigates the relationship between the size of government and economic growth in OECD countries in 1960?2000. The underlying idea is that government expenditures on public goods basically have a positive effect on growth, but this growth effect tends to decline or even reverse when...
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inequality. An estimated baseline convergence model captures the long-term effect of human capital and total investment on … certain public spending items (public investment and education) boost potential growth, while others (pensions and public …
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This paper reviews the key issues concerning the impact of public spending and taxation on long-run growth and inequality and takes stock of existing theoretical and empirical studies. Overall, the evidence highlights that the size of the government matters for long-term growth as a too large...
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