On Explaining the Differences in Economic Growth Rates in OECD Countries
In this study, we examine the role played by fiscal policy in explaining the differences in economic growth rates of the nineteen OECD countries over the 1971-1999 period. We model the impact of government spending variables (which can be taken as indicators of the size of government) on economic growth via their impact on total factor productivity, and estimate the model using the random coefficients approach. Our results indicate that total factor productivity growth is impacted adversely by the size of government, when total government outlays (relative to GDP) are used to measure government size. On the other hand, if we measure government size in terms of the growth of government consumption, the impact is unambiguously positive. The difference is likely due to the fact that government transfers were the reason behind the sharp upward trend in fiscal deficits over this period, resulting in high taxation levels. In both cases, the evidence is not strong enough to suggest a monotonic relationship between the magnitude of this impact and government size.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 6 (2003)
Issue (Month): 2 (Winter)
|Contact details of provider:|| Web page: http://www.ekonomia.ucy.ac.cy/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ekn:ekonom:v:6:y:2003:i:2:p:147-159. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Managing Editor)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.