Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/17733
Authors: 
Heitger, Bernhard
Year of Publication: 
2001
Series/Report no.: 
Kiel Working Paper 1034
Abstract: 
This paper investigates the relationship between the size of government and economic growth in OECD countries in 1960?2000. The underlying idea is that government expenditures on public goods basically have a positive effect on growth, but this growth effect tends to decline or even reverse when government is overdoing, e.g. by increasing expenditures in such a way that it ultimately also provides private goods. Empirical analyses based on panel estimates for 21 OECD countries support this hypothesis: Total government expenditures as well as expenditures by type indicate a significant negative impact on economic growth (excepting transfers and public investments).
Subjects: 
Government expenditure
taxation and economic growth
JEL: 
H1
H2
O4
Document Type: 
Working Paper

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