IDEAS home Printed from https://ideas.repec.org/a/ren/journl/v14y2022i3p343-366.html
   My bibliography  Save this article

The Welfare State and Economic Growth – Econometric Evidence from Germany

Author

Listed:
  • Richard Reichel

    ("FOM University of Applied Sciences, University of Erlangen-Nuremberg")

Abstract

"This paper attempts to analyze the growth effects of social security expenditures in Germany from a time series perspective. Therefore, a regression model based on standard determinants of growth is specified and estimated as a vector error correction model. Results show that there is a bidirectional relationship between growth and social security expenditures. In the short run, social security expenditures and growth rates are inversely related. Lower or even negative growth rates cause higher expenditures of the welfare state. In the long run, there is also an inverse relationship, but the direction of causality changes. Higher social security spending triggers lower growth rates. Robustness tests confirm the stability of the results."

Suggested Citation

  • Richard Reichel, 2022. "The Welfare State and Economic Growth – Econometric Evidence from Germany," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 14(3), pages 343-366, October.
    • Handle: RePEc:ren:journl:v:14:y:2022:i:3:p:343-366
    DOI: https://doi.org/10.15353/rea.v14i3.1973
    as

    Download full text from publisher

    File URL: https://openjournals.uwaterloo.ca/index.php/rofea/article/view/1973/5566
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.15353/rea.v14i3.1973?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Economic Growth; Welfare State; Social Security;
    All these keywords.

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ren:journl:v:14:y:2022:i:3:p:343-366. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Jerzy (Jurek) Konieczny (email available below). General contact details of provider: http://www.rcfea.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.