Fiscal policy and economic growth : an empirical investigation / William Easterly, Sergio Rebelo.

Format:

Book

Author/Creator:

Easterly, William, 1957- author.

Rebelo, Sergio, author.

Series:

Working Paper Series (National Bureau of Economic Research) ; Number w4499.

Working Paper Series (National Bureau of Economic Research) ; Number w4499

Language:

English

Subjects (All):

Economic development--Econometric models.

Economic development.

Fiscal policy--Econometric models.

Fiscal policy.

United States--Economic conditions.

United States.

Physical Description:

1 online resource (38 pages) : illustrations.

Place of Publication:

Cambridge, Massachusetts : National Bureau of Economic Research, 1993.

Summary:

This paper describes the empirical regularities relating fiscal policy variables, the level of development and the rate of growth. We employ historical data, recent cross-section data, and newly constructed public investment series. Our main findings are: (i) there is a strong association between the development level and the fiscal structure: poor countries rely heavily on international trade taxes, while income taxes are only important in developed economies; (ii) fiscal policy is influenced by the scale of the economy, measured by its population; (iii) investment in transport and communication is consistently correlated with growth while the effects of taxation are difficult to isolate empirically.

Notes:

Description based on publisher supplied metadata and other sources.