Government size, composition, volatility and economic growth

Arbeitspapier

This paper analyses the effects in terms of size and volatility of government revenue and spending on growth in OECD and EU countries. The results of the paper suggest that both variables are detrimental to growth. In particular, looking more closely at the effect of each component of government revenue and spending, the results point out that i) indirect taxes (size and volatility); ii) social contributions (size and volatility); iii) government consumption (size and volatility); iv) subsidies (size); and v) government investment (volatility) have a sizeable, negative and statistically significant effect on growth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 849

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy ; National Government Expenditures and Related Policies: General ; Economic Growth and Aggregate Productivity: General
• Subject: economic growth ; Fiscal Policy ; fiscal volatility ; government size ; Öffentliche Einnahmen ; Öffentliche Ausgaben ; Staatsquote ; Finanzpolitik ; Wirtschaftswachstum ; EU-Staaten ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Afonso, António ; Furceri, Davide
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/153283
• Last update: 10.03.2025, 11:42 AM CET