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La calidad del gasto público y su influencia en el desarrollo económico: una validación empírica para los países de la OCDE 1970-2005

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  • Guillem López Casasnovas

    () (Universidad Pompeu Fabra)

Abstract

The assessment on the relevance of public spending on economic growth has deserved an important attention in the economic literature. However its empirical approach by testing the effects by an aggregate production function may mislead the results since the composition of public expenditure, more than its level, is crucial. In this paper, after surveying of the current state of affairs on the topic, we estimate for the OECD countries, and a period which extends from 1970 to 2005, a panel data regression on the level of growth and its rate, and on some proxy for the income inequality. We take as regressors the detailed composition of public expenditure according to functional categories (health, education, economic services…) and its economic classification (public consumption versus transfers –as a proxy of in-kind versus money transfers–; public production –chapter 1– against purchases and contracting out –chapter 2–, current versus capital expenditure).

Suggested Citation

  • Guillem López Casasnovas, 2010. "La calidad del gasto público y su influencia en el desarrollo económico: una validación empírica para los países de la OCDE 1970-2005," Hacienda Pública Española, IEF, vol. 193(2), pages 9-48, June.
  • Handle: RePEc:hpe:journl:y:2010:v:193:i:2:p:9-48
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    References listed on IDEAS

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    1. Karl Aiginger & Martin Falk, 2005. "Explaining Differences in Economic Growth among OECD Countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 19-43, March.
    2. Ivan Tchakarov & Roland Straub, 2007. "Assessing the Impact of a Change in the Composition of Public Spending; A DSGE Approach," IMF Working Papers 07/168, International Monetary Fund.
    3. Gupta, Sanjeev & Clements, Benedict & Baldacci, Emanuele & Mulas-Granados, Carlos, 2005. "Fiscal policy, expenditure composition, and growth in low-income countries," Journal of International Money and Finance, Elsevier, vol. 24(3), pages 441-463, April.
    4. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    5. Straub, Roland & Tchakarov, Ivan, 2007. "Assessing the impact of a change in the composition of public spending: a DSGE approach," Working Paper Series 795, European Central Bank.
    6. De Ãvila, Diego Romero & Strauch, Rolf, 2003. "Public finances and long-term growth in Europe - evidence from a panel data analysis," Working Paper Series 246, European Central Bank.
    7. Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December.
    8. Devarajan, Shantayanan & Swaroop, Vinaya & Heng-fu, Zou, 1996. "The composition of public expenditure and economic growth," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 313-344, April.
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    Cited by:

    1. Andrés Navarro-Galera & Mercedes Ruiz-Lozano & Pilar Tirado-Valencia & Araceli de los Ríos-Berjillos, 2017. "Promoting Sustainability Transparency in European Local Governments: An Empirical Analysis Based on Administrative Cultures," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-20, March.

    More about this item

    Keywords

    composition of public expenditure; economic growth; public finances; efficiency; OECD.;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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