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An Exploration into the Effects of Fiscal Variables on Regional Growth

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This paper explores the effects of several fiscal variables on regional economic growth in Spain over period 1965-1997. Panel estimates are provided for this sample. The results show that public consumption affects negatively growth, public investment exerts a positive (but non significant) effect on growth rate and public deficit reduces private investment and hence economic growth. The effects of taxes and social benefits seem not to be beneficial for regional growth. Alternative estimates to deal with specification problems are considered.

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  • Diego Martínez López, 2003. "An Exploration into the Effects of Fiscal Variables on Regional Growth," Economic Working Papers at Centro de Estudios Andaluces E2003/46, Centro de Estudios Andaluces.
    • Handle: RePEc:cea:doctra:e2003_46
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    More about this item

    Keywords

    Economic growth; fiscal policy; regional economics.;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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