Public finances and long-term growth in Europe: Evidence from a panel data analysis

European Journal of Political Economy

Volumn 24, Issue 1, 2008, Pages 172-191

  Romero Ávila, Diego ^a   Strauch, Rolf ^b  

^a UNIVERSIDAD PABLO DE OLAVIDE   (Spain)

^b EUROPEAN CENTRAL BANK   (Germany)

Author keywords

Economic growth; Panel cointegration; Public finances

Indexed keywords

EID: 38949183685     PISSN: 01762680     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ejpoleco.2007.06.008     Document Type: Article

References (46)

1. Afonso A. Fiscal sustainability: the unpleasant European case. FinanzArchiv 61 (2005) 19-44
2. Alesina A., Ardagna S., Perotti R., and Schiantarelli F. Fiscal policy, profits, and investment. American Economic Review 92 (2002) 571-589
3. Ardagna S. Fiscal policy in unionized labour markets. Working paper (2006), Harvard University, Cambridge MA
4. Arellano M., and Bond S. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 58 (1991) 277-297
5. Ball L., Elmendorf D.W., and Mankiw N.G. The deficit gamble. Journal of Money, Credit and Banking 30 (1998) 699-720
6. Baltagi B.H., and Kao C. Nonstationary panels, cointegration in panels and dynamic panels: a survey. Working Paper (2000), Syracuse University, Syracuse
7. Baltagi B.H., and Kao C. Nonstationary panels, cointegration in panels and dynamic panels: a survey. In: Baltagi B.H. (Ed). Non-Stationary Panels. Panel Cointegration and Dynamic Panels - Advances in Econometrics vol. 15 (2000), Elsevier Science Inc., Amsterdam 7-51
8. Barro R. Government spending in a simple model of endogenous growth. Journal of Political Economy 98 (1990) 103-125
9. Bassanini A., and Scarpetta S. Does human capital matter for growth in OECD countries? A pooled mean-group approach. Economics Letters 74 (2002) 399-405
10. Belessiotis T. Fiscal revenues and expenditure in the community: Granger-causality among fiscal variables in thirteen member states and implications for fiscal adjustments. Economic Papers vol. 114 (1995), European Commission, Brussels
11. Bleaney M., Gemmell N., and Kneller R. Testing the endogenous growth model: public expenditure, taxation, and growth over the long-run. Canadian Journal of Economics 34 1 (2001) 36-57
12. Bond S., Hoeffler A., and Temple J. GMM estimation of empirical growth models. CEPR Working Paper vol. 3048 (2001), Centre for Economic Policy Research, London
13. Bouthevillain C., Cour-Thimann P., van den Dool G., Hernández de Cos P., Langenus G., Mohr M., Momigliano S., and Tujula M. Cyclically adjusted budget balances: an alternative approach'. ECB Working Paper vol. 77 (2001), European Central Bank, Frankfurt
14. Bohn H. Budget balance through revenue or spending adjustments? Some historical evidence for the United States. Journal of Monetary Economics 27 (1991) 333-359
15. Breitung J. The local power of some unit root tests for panel data. In: Baltagi B.H. (Ed). Non-stationary panels. Panel Cointegration and Dynamic Panels - Advances in Econometrics vol. 15 (2000), Elsevier Science Inc., Amsterdam 161-177
16. Cass D. Optimum growth in an aggregative model of capital accumulation. Review of Economic Studies 32 (1965) 233-240
17. De Haan J., Sturm J.-E., and Volkerink B. How to measure the tax burden on labour at the macro-level?. In: Sørensen P.B. (Ed). Measuring the Tax Burden on Capital and Labour (2004), MIT Press, Cambridge MA 289-318
18. De la Fuente A. Fiscal policy and growth in the OECD. CEPR Discussion Paper vol. 1755 (1997), Centre for Economic Policy Research, London
19. De la Fuente A., and Doménech R. Human capital in growth regressions: how much difference does data quality make?. Journal of the European Economic Association 4 (2006) 1-36
20. Dickey D., and Fuller W.A. Distribution of the estimates for autoregressive time series with a unit root. Journal of the American Statistical Association 74 (1979) 427-431
21. European Commission (various years). European Economy - Public Finance Report, European Commission, Brussels.
22. Evans P. Government consumption and growth. Economic Inquiry 35 (1997) 209-217
23. Gali J., and Perotti R. Fiscal policy and monetary integration in Europe. Economic Policy 37 (2003) 243-272
24. Im K.S., Pesaran M.H., and Shin Y. Testing for unit roots in heterogeneous panels. Journal of Econometrics 115 (2003) 53-74
25. Jones C.I. Time series properties of endogenous growth models. Quarterly Journal of Economics 110 (1995) 495-525
26. Karras G. Taxes and growth: testing the neoclassical and endogenous growth models. Contemporary Economic Policy 17 (1999) 177-188
27. Kneller R., Bleaney M.F., and Gemmell N. Fiscal policy and growth: evidence from OECD countries. Journal of Public Economics 74 (1999) 171-190
28. Kocherlakota N.R., and Yi K. Is there long-run growth? Evidence from the United States and the United Kingdom. Journal of Money, Credit and Banking 29 (1997) 233-262
29. Levin A., and Lin C.F. Unit root tests in panel data: asymptotic and finite sample properties. Discussion Paper (1992), University of California, Berkeley
30. Lucas R.E. On the mechanics of economic development. Journal of Monetary Economics 22 (1988) 3-42
31. Martínez-Mongay C. ECFIN's effective tax rates. Properties and comparisons with other tax indicators. Economic Papers vol. 146 (2000), European Commission, Brussels
32. Mendoza E.G., Milesi-Ferretti G., and Asea P. On the ineffectiveness of tax policy in altering long-run growth: Harberger's superneutrality conjecture. Journal of Public Economics 66 (1997) 99-126
33. Nijkamp P., and Poot J. Meta-analysis of the effect of fiscal policies on long-run growth. European Journal of Political Economy 20 (2004) 91-124
34. O'Connell S., and Zeldes S.P. Rational Ponzi games. International Economic Review 29 (1988) 431-450
35. Pedroni P. Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics 61 (1999) 653-678
36. Pedroni P. Fully modified OLS for heterogeneous cointegrated panels. Non-Stationary Panels, Panel Cointegration and Dynamic Panels: Advances in Econometrics vol. 15 (2000), Elsevier, Amsterdam 93-130
37. Pesaran H.P., Smith R.P., and Im K.-S. Dynamic linear models for heterogeneous panels. In: Matyas L., and Sevestre P. (Eds). The Econometrics of Panel Data: A Handbook of the Theory and Applications (1996), Kluwer Academic Publishers, Dordrecht
38. Quintos C.E. Sustainability if the deficit process with structural shifts. Journal of Business and Economic Statistics 13 (1995) 409-417
39. Rebelo S. Long-run policy analysis and long-run growth. Journal of Political Economy 99 (1991) 500-521
40. Romer P. Increasing returns and long-run growth. Journal of Political Economy 94 (1986) 1002-1037
41. Romer P. Endogenous technological change. Journal of Political Economy 98 (1990) S71-S102
42. Santos Bravo A., and Silvestre A.L. Intertemporal sustainability of fiscal policies: some tests for European countries. European Journal of Political Economy 18 (2002) 517-528
43. Solow R.M. A contribution to the theory of economic growth. Quarterly Journal of Economics 70 (1956) 65-94
44. Temple J. The long-run implications of growth theories. Journal of Economic Surveys 17 (2003) 497-510
45. Trehan B., and Walsh C. Common trends, the government budget constraint, and the revenue smoothing. Journal of Economic Dynamics and Control 12 (1988) 225-444
46. Widmalm F. Tax structure and growth: are some taxes better than others?. Public Choice 107 (2001) 199-219