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Fiscal Policy and Growth Revisited: The Case of The Spanish Regions

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This paper presents an assessment of the effects of fiscal policy on economic growth. Starting from a theoretical model in which only those fiscal policy instruments presumed to strictly influence the production process (i. e., public capital and transfers) are incorporated into the production function, we provide an empirical application for the case of the Spanish regions during the period 1967-1991. The results confirm the positive effect of public investment on growth, together with a positive effect of transfers but only for poorer regions.

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  • Oscar Bajo & Carmen DÌaz Rold·n & Maria Dolores Montavez, 1999. "Fiscal Policy and Growth Revisited: The Case of The Spanish Regions," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 9904, Departamento de Economía - Universidad Pública de Navarra.
  • Handle: RePEc:nav:ecupna:9904
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    Cited by:

    1. Óscar Bajo Rubio & Carmen Díaz Roldán & M.a Dolores Montávez Garcés, "undated". "Optimal Endowments Of Public Investment: An Empirical Analysis For The Spanish Regions," Working Papers 20-02 Classification-JEL , Instituto de Estudios Fiscales.

    More about this item

    Keywords

    Growth; fiscal policy; regions;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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