Article ID Journal Published Year Pages File Type
5068329 European Journal of Political Economy 2010 16 Pages PDF
Abstract

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.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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