Causality for the Government Budget and Economic Growth | Zendy

António Afonso | Zendy; João Tovar Jalles | Zendy

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Causality for the Government Budget and Economic Growth

Author(s) -

António Afonso,

João Tovar Jalles

Publication year - 2014

Publication title -

ssrn electronic journal

Language(s) - English

Resource type - Journals

ISSN - 1556-5068

DOI - 10.2139/ssrn.2429909

Subject(s) - causality (physics) , revenue , economics , government spending , government revenue , per capita , government (linguistics) , monetary economics , government expenditure , panel data , macroeconomics , public economics , econometrics , public finance , finance , market economy , linguistics , philosophy , physics , quantum mechanics , population , demography , sociology , welfare

We use a panel of 155 countries for 1970-2010 to study (two-way) causality between government spending, revenue and growth. Our results suggest the existence of weak evidence supporting causality from expenditures or revenues to GDP per capita and provide evidence supporting Wagner’s Law.

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