Fiscal Structures and Economic Growth: International Evidence

Miller, Stephen M.; Russek, Frank S.

doi:10.1111/j.1465-7295.1997.tb02036.x

Cited by 104 publications

(103 citation statements)

References 21 publications

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“…The negative effect of government spending matches the standard neo-classical result in the literature (e.g., Barro, 1991;Landau, 1983;Miller and Russek, 1997). The negative sign may signal that the large government share of the economy retards economic growth.…”

Section: Growth Accounting Equationsupporting

confidence: 66%

“…The three models are: (1) A fixed-effect panel estimation of a St. Louis equation similar to Batten and Hafer (1983); (2) A fixed-effect panel estimation of a Martingale model of consumption similar to Hall (1978) and Flavin (1981); and (3) A fixedeffect panel estimation of a growth accounting relationship similar to Levin and Renault (1992), Barro (1991), and Miller and Russek (1997).…”

Section: Vii: Estimationmentioning

confidence: 99%

“…Some researchers introduce a time dimension to their analysis (e.g., Grier and Tullock, 1989;Islam, 1995;Miller and Russek, 1997) either by breaking the sample into sub-periods of time over which the data are averaged or by considering each time period as a separate observation in a pooled regression.…”

Section: Growth Accounting Equationmentioning

confidence: 99%

“…Finally, the authors estimate a growth accounting equation similar to Levin and Renault (1992), Barro (1991), and Miller and Russek (1997).…”

mentioning

confidence: 99%

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The Relationship Between Large Fiscal Adjustments and Short‐term Output Growth Under Alternative Fiscal Policy Regimes

Miller

Russek

2003

Contemporary Economic Policy

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A small, but growing, body of literature searches for evidence of non-Keynesian effects of fiscal contractions. That is, some evidence exists that large fiscal contractions stimulate short-run economic activity. Our paper continues this research effort by systematically examining the effects, if any, of unusual fiscal events -either non-Keynesian results within a Keynesian model or Keynesian results within a neoclassical model -on short-run economic activity. We examine this issue within three separate models -a St. Louis equation, a Hall-type consumption equation, and a growth accounting equation. Our empirical findings are mixed, and do not provide strong systematic support for the view that unusually large fiscal contractions/expansions reverse the effects of normal fiscal events. Moreover, we find only limited evidence that trigger points are empirically important. THE RELATIONSHIP BETWEEN LARGE FISCAL ADJUSTMENTS AND SHORT-TERM OUTPUT GROWTH UNDER ALTERNATIVE FISCAL POLICY REGIMES

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Section: Growth Accounting Equationsupporting

confidence: 66%

Section: Vii: Estimationmentioning

confidence: 99%

Section: Growth Accounting Equationmentioning

confidence: 99%

“…Finally, the authors estimate a growth accounting equation similar to Levin and Renault (1992), Barro (1991), and Miller and Russek (1997).…”

mentioning

confidence: 99%

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The Relationship Between Large Fiscal Adjustments and Short‐term Output Growth Under Alternative Fiscal Policy Regimes

Miller

Russek

2003

Contemporary Economic Policy

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“…Several recent papers examine the effects, if any, of the components of government expenditure on the growth of real per capita GDP without assigning the components of government expenditure either to productive or unproductive categories, a priori (e.g., Devarajan, Swaroop, andZou 1996, andMiller andRussek 1997). Devarajan, Swaroop, and Zou (1996) consider a sample of developing countries from 1970 to 1990.…”

mentioning

confidence: 99%

Crowding‐out and crowding‐in effects of the components of government expenditure

Ahmed

Miller

2000

Contemporary Economic Policy

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This article examines the effects of disaggregated government expenditure on investment using fixed- and random-effect methods. Using the government budget constraint, the analysis explores the effects of tax- and debt-financed expenditure for the full sample, and for subsamples of developed and developing countries. In general, tax-financed government expenditure crowds out more investment than debt-financed expenditure. Expenditure on social security and welfare reduces investment in all samples while expenditure on transport and communication induces private investment in developing countries. Copyright 2000 Western Economic Association International.

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Pharmaceutical expenditure and gross domestic product: Evidence of simultaneous effects using a two‐step instrumental variables strategy

Shaikh

Gandjour

2018

Health Economics

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This paper estimates the income elasticity of government pharmaceutical spending and assesses the simultaneous effect of such spending on gross domestic product (GDP). Using a panel dataset for 136 countries from 1995 to 2006, we employ a two‐step instrumental variable procedure where we first estimate the effect of GDP on public pharmaceutical expenditure using tourist receipts as an instrument for GDP. In the second step, we construct an adjusted pharmaceutical expenditure series where the response of public pharmaceutical expenditure to GDP is partialled out and use this endogeneity adjusted series as an instrument for pharmaceutical expenditure. Our estimations show that GDP has a strong positive impact on pharmaceutical spending with elasticity in excess of unity in countries with low spending on pharmaceuticals and countries with large economic freedom. In the second step, we find that when the quantitatively large reverse effect of GDP is accounted for, public pharmaceutical spending has a negative effect on GDP per capita particularly in countries with limited economic freedom.

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Fiscal Structures and Economic Growth: International Evidence

Cited by 104 publications

References 21 publications

The Relationship Between Large Fiscal Adjustments and Short‐term Output Growth Under Alternative Fiscal Policy Regimes

The Relationship Between Large Fiscal Adjustments and Short‐term Output Growth Under Alternative Fiscal Policy Regimes

Crowding‐out and crowding‐in effects of the components of government expenditure

Pharmaceutical expenditure and gross domestic product: Evidence of simultaneous effects using a two‐step instrumental variables strategy

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