Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153283
Authors: 
Afonso, António
Furceri, Davide
Year of Publication: 
2008
Series/Report no.: 
ECB Working Paper 849
Abstract: 
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.
Subjects: 
economic growth
Fiscal Policy
fiscal volatility
government size
JEL: 
E62
H50
O40
Document Type: 
Working Paper

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