Fiscal Composition of Government and Economic Growth
| Authors | |
|---|---|
| Year of publication | 2017 |
| Type | Article in Proceedings |
| Conference | Hradec Economic Days 2017 |
| MU Faculty or unit | |
| Citation | |
| Web | http://fim2.uhk.cz/hed/images/KOMPLET_en_17.pdf |
| Field | Economy |
| Keywords | economic growth; panel data; scope of government |
| Description | Many developed countries have an extensive government sector, which can lead to negative ramifications to the economic subjects and overall macroeconomic stability. Aim of this paper is therefore to evaluate possible effects of scope of the government to economic growth. Fiscal composition of government sector is represented by both revenue and expenditure side. Fixed-effect panel estimator was used as a tool of an analysis. Annual data and five-year averages from 31 OECD countries were used to detect both short and long-term effects of government size in period from 1995 to 2014. Results are indicated a statistically significant negative correlation between economic growth and change of total revenues. There were also no significant results for change of government expenditures. |
| Related projects: |