Quality of public finances and growth

Antonio Afonso, Werner Ebert (), Ludger Schuknecht () and Michael Thöne ()
Additional contact information
Werner Ebert: Bundesministerium der Finanzen, Detlev-Rohwedder-Haus,Wilhelmstrße 97, D-10117 Berlin, Germany., http://pascal.iseg.utl.pt/~aafonso/AAWeb.html
Michael Thöne: Finanzwissenschaftliches Forschungsinstitut (FiFo), Köln University, Zülpicher Str. 182, D-50937 Köln, Germany., http://www.wiso.uni-koeln.de

No 438, Working Paper Series from European Central Bank

Abstract: In this paper we review the linkages between the quality of public finances, that is, the level and composition of public expenditure and its financing via revenue and deficits, and economic growth. We review the various channels through which public finances affect growth and its underlying determinants (institutional framework, employment, savings and investment, innovation). The paper addresses the approaches used to assess the performance and efficiency of public spending, and surveys the empirical findings on the impact of fiscal variables on sustained economic growth.

Keywords: quality of public finances; efficiency; growth (search for similar items in EconPapers)
JEL-codes: H50 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-pbe
Date: 2005-02
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Persistent link: http://EconPapers.repec.org/RePEc:ecb:ecbwps:20050438

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