Public expenditure, income distribution, and growth in OECD countries

Oscar Alfranca and Miguel-Angel Galindo

International Advances in Economic Research, 2003, vol. 9, issue 2, 133-139

Abstract: Economic growth and the several topics related to it have been studied by economists since their earliest publications. Two different approaches to this area can be found in Neoclassical and Endogenous growth models. The economic growth analysis has focused its attention on the factors that influence the growth of nations, such as fiscal policy or improvement of human capital. Nevertheless, it is also interesting to study the effects of income distribution on economic growth to determine if it has positive effects on growth. The aim of this paper is to study these effects. The authors will develop a theoretical model in which they will introduce public capital in a typical Cobb-Douglas production function. They will estimate OLS, GLS, and SUR fixed effects models for time series and cross-sectional data. Copyright International Atlantic Economic Society 2003

Date: 2003
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DOI: 10.1007/BF02295714

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