This paper develops an endogenous growth model of the influence of public investment, public transfers, and distortionary taxation on the rate of economic growth. The growth-enhancing effects of investment in public capital and transfer payments are modeled, as is the growth-inhibiting influence...

A number of cross-country comparisons do not find a robust negative relationship between government size and economic growth. In part this may reflect the prediction in economic theory that a negative relationship should exist primarily for rich countries with large public sectors. In this paper...

The relationship between government spending and economic growth is an important and controversial issue in modern societies. In this paper, the correlation between economic growth and government expenditure is studied. The analysis is based on data for the European Union countries and panel...

Using a simple stochastic growth model that nests both exogenous and endogenous growth, this paper shows that the growth rate should be mean stationary if growth is exogenous and difference stationary if growth is endogenous and any variable affecting the investment rate is difference...

In Jordan, a system of general food subsidies became untenable in budgetary terms, with a sharp devaluation of the dinar in the late 1980s. A shift from a general subsidy system to limited rations would greatly reduce budgetary costs and minimize adverse effects on the poor. To reduce subsidies,...