Growth effects of government expenditure and taxation in rich countries
| Autor: | Stefan Fölster, Magnus Henrekson |
|---|---|
| Rok vydání: | 2001 |
| Předmět: |
Economics and Econometrics
Government Heteroscedasticity business.industry jel:E62 Public sector Sample (statistics) Regression analysis jel:H50 Government expenditure jel:H20 Fiscal policy jel:O40 Negative relationship jel:O23 Economic growth extreme bounds analysis government expenditure public sector taxation cross-country regressions panel regressions robustness test Econometrics Economics Extreme bounds analysis Fiscal Policy Taxation Cross-country regressions Panel regressions Robustness test business Finance |
| Zdroj: | European Economic Review. 45:1501-1520 |
| ISSN: | 0014-2921 |
| DOI: | 10.1016/s0014-2921(00)00083-0 |
| Popis: | 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 an econometric panel study is conducted on a sample of rich countries covering the 1970-95 period. Extended extreme bounds analyses are reported based on a regression model that tackles a number of econometric issues. Our general finding is that the more econometric problems are addressed, the more robust the relationship between government size and economic growth appears. Our most complete specifications are robust even according to the stringent extreme bounds criterion. |
| Databáze: | OpenAIRE |
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