This empirical paper uses annual data for Greece 1960–2000 to study the link between fiscal policy and economic growth. Our regression analysis implies that, although a smaller public sector can be good for growth, it is necessary to look beyond size; the composition and quality/efficiency of the public sector are equally important. The policy lesson is that a smaller government share in GDP, a reallocation of funds away from the wage bill to public investment, and an improvement in government quality/efficiency can become engines of long-term growth. Copyright Springer Science+Business Media, LLC 2007
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Article provided by Springer in its journal Public Choice.
Volume (Year): 131 (2007) Issue (Month): 1 (April) Pages: 157-175 Download reference. The following formats are available: HTML,
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