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Growth effects of government expenditure and taxation in rich countries: A reply
KTH, School of Architecture and the Built Environment (ABE), Transport and Economics (closed 20110301). (Nationalekonomi)
2006 (English)In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 50, no 1, 219-221 p.Article in journal (Refereed) Published
Abstract [en]

gell et al. (2005) criticise our earlier findings (Folster and Henrekson 2001) of a robust negative relationship between government size and economic growth for an extended sample of rich countries. In this short paper it is argued that their critique is unfounded. Most importantly, the critique does not deal with the main result of the original study, namely that the most complete specifications for assessing the relationship between government expenditure and growth in rich countries are robust even according to stringent extreme bounds criteria.

Place, publisher, year, edition, pages
2006. Vol. 50, no 1, 219-221 p.
Keyword [en]
economic growth, extreme bounds analysis, fiscal policy, government expenditure, public sector, taxation, cross-country regressions, robustness test
National Category
Business Administration
URN: urn:nbn:se:kth:diva-10855DOI: 10.1016/j.euroecorev.2005.02.007ISI: 000234131600010OAI: diva2:228277
QC 20111010Available from: 2009-07-28 Created: 2009-07-28 Last updated: 2011-10-10Bibliographically approved

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