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Growth and relative living standards - testing Barriers to Riches on post-war panel data

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  • Minford, Patrick

    ()
    (Cardiff Business School)

  • Meenagh, David

    ()
    (Cardiff Business School)

  • Wang, Jiang

Abstract

The effect of business tax and regulation on growth, together with potential effects of government spending on education and R&D, is embodied in a model of a small open economy with growth choices. The structural model is estimated on post-war panel data for 76 countries and the bootstrap is used to produce the model's sampling variation for the analysis of panel regressions of growth. Statistical rejection can occur at either the structural or the growth regression stage. The models featuring government spending on education and R&D are rejected while that with business taxation is accepted.

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Bibliographic Info

Paper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number E2007/12.

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Length: 40 pages
Date of creation: Apr 2007
Date of revision:
Handle: RePEc:cdf:wpaper:2007/12

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Keywords: growth; living standards; business regulation; business taxation; public education; government R&D; structural model; bootstrap testing;

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