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- W2972854241 abstract "Motivated by the mixed evidence in previous literature, we reexamine the effects of various types of government spending and taxes, as well as overall budget surplus/deficit, on economic growth. To address the model uncertainty issue that may have plagued earlier studies we employ a Bayesian Model Averaging (BMA) approach. We use a panel data set for OECD countries for the 1990-2013 period, control for country and time specific effects, and allow for a wide range of other potential growth determinants. The results suggest a robust link between only some fiscal variables and economic growth. On the spending side, productive public spending has a robust positive effect on growth. On the revenue side, we document a robust negative effect for the top corporate tax rate, but, maybe surprisingly, not for any income tax variable. Finally, our results suggest that a budget surplus has a robust positive effect on economic performance. We also analyze the timing of effects and conclude that most effects occur with a lag of two years." @default.
- W2972854241 created "2019-09-19" @default.
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- W2972854241 date "2017-01-01" @default.
- W2972854241 modified "2023-09-23" @default.
- W2972854241 title "Revisiting the Growth Effects of Fiscal Policy: A Bayesian Model Averaging Approach" @default.
- W2972854241 doi "https://doi.org/10.2139/ssrn.3065703" @default.
- W2972854241 hasPublicationYear "2017" @default.
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