Growth and the Welfare State in the EU: A causality analysis
AbstractIn this paper, we test for causality between GDP growth and social protection expenditure in the European Union. To that end, we apply Hsiao's (1981) sequential procedure to data for twelve EU countries along the 1970-94 period. Our results suggest that, for Belgium, Germany, Ireland, Luxembourg, the Netherlands, Portugal, and Spain, causality runs only from social protection growth to GDP growth, while for Denmark, France, Greece, Italy, and the United Kingdom, no causality is found between social protection growth and GDP growth. Copyright 2001 by Kluwer Academic Publishers
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Bibliographic InfoPaper provided by FEDEA in its series Working Papers with number 98-12.
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- Herce, Jose A & Sosvilla-Rivero, Simon & de Lucio, Juan Jose, 2001. " Growth and the Welfare State in the EU: A Causality Analysis," Public Choice, Springer, vol. 109(1-2), pages 55-68, October.
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- Sergio Beraldo & Daniel Montolio Estivill & Gilberto Turati, 2005. "Healthy, Educated and Wealthy: Is the Welfare State Really Harmful for Growth?," Working Papers in Economics 127, Universitat de Barcelona. Espai de Recerca en Economia.
- Simón Sosvilla-Rivero & José Antonio Herce & Juan-José De Lucio, 2003.
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Economics Working Papers
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