6533b857fe1ef96bd12b455f

RESEARCH PRODUCT

Government size, composition, volatility and economic growth

Davide FurceriDavide FurceriAntónio AfonsoAntónio Afonso

subject

Consumption (economics)Economics and EconometricsGovernmentjel:E62Fiscal VolatilitySubsidyMonetary economicsjel:H50Investment (macroeconomics)Fiscal policyGovernment Size Composition Volatility and GrowthFiscal Policyjel:O40economic growth Fiscal Policy fiscal volatility government sizeEconomic GrowthPolitical Science and International RelationsFiscal Policy; Government Size; Fiscal Volatility; Economic Growth.EconomicsGovernment revenueVolatility (finance)Government SizeIndirect tax

description

This paper analyses the effects in terms of size and volatility of government revenue and spending on growth in OECD and EU countries. The results of the paper suggest that both variables are detrimental to growth. In particular, looking more closely at the effect of each component of government revenue and spending, the results point out that i) indirect taxes (size and volatility); ii) social contributions (size and volatility); iii) government consumption (size and volatility); iv) subsidies (size); and v) government investment (volatility) have a sizeable, negative and statistically significant effect on growth. info:eu-repo/semantics/publishedVersion

yearjournalcountryeditionlanguage
2008-01-01European Journal of Political Economy
https://doi.org/10.1016/j.ejpoleco.2010.02.002