Fiscal composition and long-term growth

Afonso, António; Jalles, João Tovar

doi:10.1080/00036846.2013.848030

Cited by 61 publications

(36 citation statements)

References 46 publications

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“…As shown by Kneller, Bleaney and Gemmell (), without accounting for the government budget constraint (GBC), evidence on the long‐run output effects of public expenditures is difficult to interpret and can appear to be non‐robust. Recent studies, such as Acosta‐Ormaechea and Morozumi () and Afonso and Jalles (), have sought to accommodate the GBC, to varying degrees, in their empirical approaches. Both studies focus on social security, education and health spending (and T&C in the case of Acosta‐Ormaechea and Morozumi), generally finding negative associations between GDP growth and social security spending, but positive associations for education and health.…”

Section: Public Spending Taxes and Growthmentioning

confidence: 94%

Does the Composition of Government Expenditure Matter for Long‐Run GDP Levels?

2015

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A note on versions:The version presented here may differ from the published version or from the version of record. If you wish to cite this item you are advised to consult the publisher's version. Please see the repository url above for details on accessing the published version and note that access may require a subscription. AbstractWe examine the long-run GDP impacts of changes in total government expenditure and in the shares of different spending categories for a sample of OECD countries since the 1970s, taking account of methods of financing expenditure changes and possible endogenous relationships. We provide more systematic empirical evidence than available hitherto for OECD countries, obtaining strong evidence that reallocating total spending towards infrastructure and education is positive for long-run output levels. Reallocating spending towards social welfare (and away from all other expenditure categories pro-rata) may be associated with modest negative effects on output in the long run.Word count: 11.961 JEL codes: H50; O40

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Section: Public Spending Taxes and Growthmentioning

confidence: 94%

Does the Composition of Government Expenditure Matter for Long‐Run GDP Levels?

2015

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“…Checherita a Rother (2010) uvádzajú, že verejný dlh oslabuje rast približne od úrovne 90-100 % k HDP (podobne však treba posudzovať aj zadlženie súkromného sektora a vzájomné vzťahy medzi dlhmi sektorov, viď Ízák, 2015). Ako sa zadlženie blíži ku kritickej hranici, ekonomické subjekty vnímajú zvyšujúce sa riziko zlyhania dlhu, čo prehlbuje vytesnávací efekt verejných investícií (Afonso a Jalles, 2014b). Afonso a Furceri (2010) upozorňujú, že dopad verejných investícií je daný ich efektivitou.…”

Section: Fiškálny Defi Cit V Kontexte Ekonomického Rastuunclassified

“…Viacero autorov ďalej používa otvorenosť ekonomiky (Afonso a Jalles, 2014b;Gupta et al, 2005;Checherita a Rother, 2010;Romero-Avila a Strauch, 2008 Kneller et al (1999) používajú 5 ročné priemery pre odstránenie hospodárskeho cyklu. Z dôvodu dĺžky časových radov nebol tento postup vhodný.…”

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The Influence of Fiscal Deficit Creation on Economic Growth

Murín¹

2016

Politicka ekonomie

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The discussion of infl uence of fi scal consolidation on economic growth is quite interesting and important topic. Consequently, the main aim of the article is to determine diff erences within the infl uence of fi scal defi cit on the economic growth, which is caused by changes in certain groups of government expenditures and revenues. We focus on two diff erent economic growth indicators. The fi rst is growth rate of real GDP and the second is growth rate of potential output. The panel regression method is used which data covers 13 old EU member states in 1996 to 2013. We employ the omitted fi scal variable approach. There is a hint that every defi cit to revenue substitution has no signifi cant growth eff ect. The results of expenditures imply, that government should reduce defi cit created by debt service. The measure has relatively stronger eff ect on supply side. Potential output growth can also be supported by the defi cit decrease of social expenditures. Lowering government consumption is detrimental to GDP, but it is not to potential output. There are some diff erences between results of two types of growth. Hence government should decide, if consolidation eff ect is considered against GDP or potential output at fi rst.Keywords: fi scal defi cit, economic growth, consolidation, government revenues, government expenditures JEL Classifi cation: O40, H62, H50, H20 ÚvodFinančná kríza vo viacerých smeroch zmenila vnímanie hospodárskej politiky. Blanchard et al. (2010) poukazujú na problémy spojené s monetárnou politikou, ktorá pri cielení infl ácie drží dlhodobo nízke úrokové miery. V prípade výraznej recesie stráca centrálna banka možnosť ovplyvniť úroveň infl ácie štandardnými monetárnymi nástrojmi. Potom je odkázaná na pôsobenie fi škálnej politiky. Tá podobne narazila na svoje limity. V čase poslednej recesie nemali niektoré vlády dostatočný priestor na adekvátne stimuly. Rad ekonómov viní z terajších problémov roztopašnosť fi škálnych autorít v dobrých časoch. Crafts (2013) tvrdí, že hospodárska autorita môže podporiť rast pomocou 3 politík. Konkrétne sa jedná o fi škálnu expanziu, monetárne uvoľnenie, alebo politiku strany ponuky. Súčasný stav núti krajiny znižovať verejný dlh. Preto je dôležité hľadať také opatrenia, ktoré by neznižovali rastové možnosti problémových ekonomík, čím by sa zmiernila dominancia ostatných politík v infl ačnom znižovaní reálneho dlhu.Cieľom tohto príspevku je určiť rozdiely v dopade fi škálneho defi citu na ekonomický rast, ktorý vzniká zmenami vybratých skupín vládnych výdavkov a príjmov. Na základe získaných výsledkov bude ambíciou článku, upozorniť na možné rast obmedzujúce účinky znižovania defi citu a obohatiť diskusiu dopadov konsolidácie na ekonomický rast. Na druhú stranu, bude prínosné určiť rozpočtové kategórie, ktorých zmeny znižujú úroveň defi citu k HDP, a súčasne môžu spôsobovať konečný rastový efekt z poklesu deficitu. Analýza nadväzuje na skoršiu prácu autora (Murín, 2014) a rozširuje ju vo viacerých aspektoch. Empirická verifi kácia vychádza z panelovej regr...

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“…Afonso and Jalles () confirm that government revenue has a negative impact on growth in the OECD, a result they find to be driven by taxes on income. On the expenditure side, they find adverse growth effects from public sector wages, interest payments, subsidies and government consumption, while spending on education and health boosts growth.…”

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confidence: 95%

Government Size and Growth: A Rejoinder

Bergh

Henrekson

2015

Journal of Economic Surveys

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In our 2011 survey of the literature in the Journal of Economic Surveys on the effect of government size on economic growth in wealthy countries we find a relatively consistent pattern: An increase in government size by 10 percentage points is associated with a 0.5–1 percentage point lower annual growth rate. This conclusion is questioned by Colombier. In this rejoinder we present a rebuttal of Colombier's argument based on a detailed scrutiny of his own statistical evidence and regression results. Furthermore, we note that several new papers that have appeared since our original paper was published give support to our main conclusion.

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Fiscal composition and long-term growth

Cited by 61 publications

References 46 publications

Does the Composition of Government Expenditure Matter for Long‐Run GDP Levels?

Does the Composition of Government Expenditure Matter for Long‐Run GDP Levels?

The Influence of Fiscal Deficit Creation on Economic Growth

Government Size and Growth: A Rejoinder

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