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- W1562016340 abstract "In this paper we review the theory and international evidence on the links between public finances and growth, including through the link between taxation, employment, and investment, and look at the evidence on these relationships in the EU8 countries over the past decade - both at the aggregate and disaggregate fiscal levels. Our econometric analysis reveals a strong negative impact of 'distortive' taxation on employment and growth while we find a less robust positive relationship between “productive” expenditures and growth. These findings suggest that reducing labor and other highly distortionary taxes while searching for efficiency gains in various areas of public expenditure should be a high priority for EU governments. These findings are consistent with recent research of Afonso, Schuknecht and Tanzi (2006) who find that emerging market countries with public expenditure ratios around 30% of GDP - well below most EU8 countries - tend to be the most efficient." @default.
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- W1562016340 date "2006-01-01" @default.
- W1562016340 modified "2023-09-25" @default.
- W1562016340 title "Public Finance, Employment and Growth in the EU8" @default.
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- W1562016340 doi "https://doi.org/10.2139/ssrn.2005055" @default.
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