Testing the endogenous growth model: public expenditure, taxation, and growth over the long run
Why is this work in the frame?
A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.
No Canadian affiliation. An affiliation-only frame — the usual design — would never have seen this work. It is one of the works that make the case for inverting the frame.
Machine scores (provisional)
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
- Teacher spread
- 0.022 · how far apart the two teachers sit on this one work
- Validation status
score_only:v0-immature-baseline· verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it
Abstract
Endogenous growth models, such as Barro (1990), predict that government expenditure and taxation will have both temporary and permanent effects on growth. We test this prediction using panels of annual and period‐averaged data for OECD countries during 1970–95, isolating long‐run from short‐run fiscal effects. Our results strongly support the endogenous growth model and suggest that long‐run fiscal effects are not fully captured by period averaging and static panel methods. Unlike previous investigations, our estimates are free from biases associated with incomplete specification of the government budget constraint and do not appear to result from endogeneity of fiscal or investment variables. JEL Classification: H30, O40 Validation du modèle de croissance endogène: dépenses publiques, fiscalité et croissance à long terme. Des modèles de croissance endogène comme celui de Barro (1990) prédisent que dépenses gouvernementales et fiscalité vont avoir des effets temporaires et permanents sur la croissance. On met cette prévision au test à l'aide de données annuelles et pour certaines moyennes couvrant des sous‐périodes pour les pays de l'OCDE (1970–95) dans le but de départager les effets à court et à long terme. Les résultats valident fortement le modèle de croissance endogène et suggèrent que les effets fiscaux à long terme ne sont pas pleinement capturés par des méthodes utilisant des moyennes ou des méthodes statiques. Contrairement aux résultats d'enquêtes antérieures, les résultats proposés ne souffrent pas de distorsions attribuables à une spécification incomplète de la contrainte budgétaire du gouvernement, et ne semblent pas être l'effet d'écho de l'endogénéité des variables fiscales et de l'investissement.
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The record
- Venue
- Canadian Journal of Economics/Revue canadienne d économique
- Topic
- Fiscal Policy and Economic Growth
- Field
- Economics, Econometrics and Finance
- Canadian institutions
- —
- Funders
- —
- Keywords
- EndogeneityEconomicsWelfare economicsGrowth modelPublic investmentFiscal policyEconometricsMonetary economicsMacroeconomics
- Has abstract in OpenAlex
- yes