Fiscal composition and long-term growth

2013/10/25 by António Afonso, João Tovar Jalles · 2 citations
Economics, Econometrics and Finance · #Fiscal Policy and Economic Growth #Fiscal Policies and Political Economy #Economic Growth and Productivity

paper · doi:10.1080/00036846.2013.848030

Abstract

We assess the fiscal composition–growth nexus, using a large country panel, accounting for the usually encountered econometric pitfalls. Our results show that revenues have no significant impact on growth whereas expenditures have negative effects. The same is true for the OECD with the addition that government revenue has a negative impact on growth. From our results, taxes on income are less for growth enhancing, as well as public wages, interest payments, subsidies and government consumption, while spending on education and health boosts growth.

Cited by

• A Panel Data Analysis of Subjective Well-Being Based on Microblog User Information. [europepmc]
• Globalisation, Welfare Models and Social Expenditure in OECD Countries [europepmc]

Related

• The Impact of Government Debt, Expenditure and Taxes on Aggregate Investment and Productivity Growth
• ECONOMIC GROWTH AND INEQUALITY: THE ROLE OF FISCAL POLICIES*
• Fiscal Policy, Profits, and Investment
• The effect of the government's revenue generation on economic growth
• The Robust Relationship between Taxes and U.S. State Income Growth