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Economic Growth and the Expanding Public Sector: A Reexamination

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  • Conte, Michael A
  • Darrat, Ali F
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    Abstract

    Utilizing a Granger causality approach, the authors test whether there has been a causal rela tion between public sector growth and real economic growth rates for the OECD countries. Special emphasis is laid on feedback effects from economic growth to government growth that result from macroeconomic policy. The authors find that government growth has had mixed effects on economic growth rates, positive for some countries and negative f or others. However, for the majority of the OECD countries, there was no discernable impact of government growth on the rate of real econo mic growth. Copyright 1988 by MIT Press.

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    Bibliographic Info

    Article provided by MIT Press in its journal Review of Economics & Statistics.

    Volume (Year): 70 (1988)
    Issue (Month): 2 (May)
    Pages: 322-30

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    Handle: RePEc:tpr:restat:v:70:y:1988:i:2:p:322-30

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    Web page: http://mitpress.mit.edu/journals/

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    Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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    Cited by:
    1. Nauro F. Campos & Jeffrey B. Nugent, 2001. "Who Is Afraid Of Political Instability?," Development and Comp Systems 0012016, EconWPA.
    2. Burton A. Abrams & Siyan Wang, 2007. "Government Outlays, Economic Growth and Unemployment: A VAR Model," Working Papers 07-13, University of Delaware, Department of Economics.
    3. Folster, Stefan & Henrekson, Magnus, 1999. "Growth and the public sector: a critique of the critics," European Journal of Political Economy, Elsevier, vol. 15(2), pages 337-358, June.
    4. Jan Hanousek & Nauro F. Campos & Randall K. Filer, 2001. "Do Stock Markets Promote Economic Growth?," Finance 0012006, EconWPA.
    5. Campos, Nauro F & Nugent, Jeffrey B, 2000. "Investment and Instability," CEPR Discussion Papers 2609, C.E.P.R. Discussion Papers.
    6. Korpi, Walter, 1992. "Welfare State Development in Europe since 1930: Ireland in a Comparative Perspective," Research Series, Economic and Social Research Institute (ESRI), number GL23.
    7. Ohlsson, H. & Agell, J. & Lindh, T., 1995. "Growth and the Public Sector: A Critical Review Essay," Papers 1995-09, Uppsala - Working Paper Series.
    8. Federico Guerrero & Elliott Parker, 2007. "The Effect of Federal Government Size on Long-Term Economic Growth in the United States, 1792-2004," Working Papers 07-002, University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics.
    9. Dudley, Leonard & Montmarquette, Claude, 1999. "Le secteur public : moteur de croissance ou obstruction à l’industrie?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 75(1), pages 357-377, mars-juin.

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