Causality for the government budget and economic growth

Antonio Afonso and Joao Jalles

Applied Economics Letters, 2014, vol. 21, issue 17, 1198-1201

Abstract: We use a panel of 155 countries for the period 1970 to 2010 to study the (two-way) causality between government spending, revenue and growth. Our results suggest the existence of weak evidence supporting causality from expenditures or revenues to GDP per capita and provide evidence supporting Wagner's law.

Date: 2014
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Working Paper: Causalilty for the government budget and economic growth (2014)
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DOI: 10.1080/13504851.2014.916383

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