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Long-run growth and government consumption

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  • Ji Uk Kim

Abstract

This paper tests the null hypothesis implied by exogenous growth that the share of government consumption in output affects the level of output but not its growth rate against the alternative hypothesis implied by endogenous growth that the growth rate is also affected. The results provide evidence that cross-country differences in income per capita result from differences in their public policies, but no evidence that differences in trend growth rates result.

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  • Ji Uk Kim, 2003. "Long-run growth and government consumption," Applied Economics Letters, Taylor & Francis Journals, vol. 10(6), pages 351-354.
    • Handle: RePEc:taf:apeclt:v:10:y:2003:i:6:p:351-354
    DOI: 10.1080/0003684032000066831
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