Investigating Causal Relations between Public Spending and Economic Growth in Europe
The link between economic growth and the size of the public sector has fueled one of the most wide-ranging debates in economic literature and the empirical evidence is far from conclusive. With dierent techniques that encompass both country-to-country causality analysis with VAR models and standard...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universidad de Huelva
2019-02-01
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| Series: | Revista de Economía Mundial |
| Subjects: | |
| Online Access: | https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/3904 |
| _version_ | 1797267315014762496 |
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| author | Mª Dolores Gadea Rivas Eduardo Bandres Moline |
| author_facet | Mª Dolores Gadea Rivas Eduardo Bandres Moline |
| author_sort | Mª Dolores Gadea Rivas |
| collection | DOAJ |
| description | The link between economic growth and the size of the public sector has fueled one of the most wide-ranging debates in economic literature and the empirical evidence is far from
conclusive. With dierent techniques that encompass both country-to-country causality analysis with VAR models and standard and grouped panels, we study this relationship for
a sample of 25 countries from the 1960s to the present. Our contribution is fundamentally methodological, overcoming several pitfalls of the previous literature, namely, endogeneity, dynamic eects and common patterns. The results do not support the fulllment of the Wagner's Law and a negative eect of public size on economic growth is highlighted. |
| first_indexed | 2024-04-25T01:14:38Z |
| format | Article |
| id | doaj.art-4d1bda00685342bd9a61ea90d5640426 |
| institution | Directory Open Access Journal |
| issn | 1576-0162 2340-4264 |
| language | English |
| last_indexed | 2024-04-25T01:14:38Z |
| publishDate | 2019-02-01 |
| publisher | Universidad de Huelva |
| record_format | Article |
| series | Revista de Economía Mundial |
| spelling | doaj.art-4d1bda00685342bd9a61ea90d56404262024-03-09T11:50:20ZengUniversidad de HuelvaRevista de Economía Mundial1576-01622340-42642019-02-015110.33776/rem.v0i51.3904Investigating Causal Relations between Public Spending and Economic Growth in EuropeMª Dolores Gadea Rivas0Eduardo Bandres Moline1U. de ZaragozaU. ZaragozaThe link between economic growth and the size of the public sector has fueled one of the most wide-ranging debates in economic literature and the empirical evidence is far from conclusive. With dierent techniques that encompass both country-to-country causality analysis with VAR models and standard and grouped panels, we study this relationship for a sample of 25 countries from the 1960s to the present. Our contribution is fundamentally methodological, overcoming several pitfalls of the previous literature, namely, endogeneity, dynamic eects and common patterns. The results do not support the fulllment of the Wagner's Law and a negative eect of public size on economic growth is highlighted.https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/3904Economic growthpublic sectorVAR modelpanel analysis. |
| spellingShingle | Mª Dolores Gadea Rivas Eduardo Bandres Moline Investigating Causal Relations between Public Spending and Economic Growth in Europe Revista de Economía Mundial Economic growth public sector VAR model panel analysis. |
| title | Investigating Causal Relations between Public Spending and Economic Growth in Europe |
| title_full | Investigating Causal Relations between Public Spending and Economic Growth in Europe |
| title_fullStr | Investigating Causal Relations between Public Spending and Economic Growth in Europe |
| title_full_unstemmed | Investigating Causal Relations between Public Spending and Economic Growth in Europe |
| title_short | Investigating Causal Relations between Public Spending and Economic Growth in Europe |
| title_sort | investigating causal relations between public spending and economic growth in europe |
| topic | Economic growth public sector VAR model panel analysis. |
| url | https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/3904 |
| work_keys_str_mv | AT madoloresgadearivas investigatingcausalrelationsbetweenpublicspendingandeconomicgrowthineurope AT eduardobandresmoline investigatingcausalrelationsbetweenpublicspendingandeconomicgrowthineurope |