What role can better quality of public finances play in supporting Europe's long-term economic growth prospects? This question was at the centre of the 2008 European Commission workshop on public finances. It was largely motivated by the pressures put on European economies and their budgets from...

This paper investigates the impact of fiscal policy on profits using panel data for 19 high-income OECD countries during the period 1975-1999. We estimate a profit equation in which profits depend on a set of fiscal variables. Our empirical method is based on a consistent treatment of the...