Fiscal Policy, Economic Growth and Innovation: An Empirical Analysis of G20 Countries

Hanusch, Horst; Chakraborty, Lekha; Khurana, Swati

doi:10.2139/ssrn.2924801

Cited by 17 publications

(8 citation statements)

References 26 publications

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“…The more general role of public investment as a technological incubator is coming back on the agenda (Mazzucato 2013). Data confirm that public spending on innovation can have a significant impact on economic growth (Hanusch, Chakrarborty, and Khurana 2017). At least on these issues, the 2008 crisis has had a positive effect on theoretical debates.…”

Section: On Public Investment and Functional Financementioning

confidence: 88%

Defaultnomics: Making Sense of the Barro-Ricardo Equivalence in a Financialized World

Esposito

Mastromatteo

2019

SSRN Journal

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The 2008 crisis created a need to rethink many aspects of economic theory, including the role of public intervention in the economy. On this issue, we explore the Barro-Ricardo equivalence, which has played a decisive role in molding the economic policies that fostered the crisis. We analyze the equivalence and its theoretical underpinnings, concluding that: (1) it declares, but then forgets, that it does not matter whether the nature of debt and investment is public or private; (2) its most problematic assumption is the representative agent hypothesis, which does not allow for an explanation of financialization and cannot assess dangers coming from high levels of financial leverage; (3) social wealth cannot be based on any micro-foundation and is linked to the role of the state as provider of financial stability;and (4) default is always the optimal policy for the government, and this remains true even when relaxing many equivalence assumptions. We go on to discuss possible solutions to high levels of public debt in the real world, inferring that no general conclusions are possible and every solution or mix of solutions must be tailored to each specific case. We conclude by connecting different solutions to the political balance of forces in the current era of financialization, using Italy (and, by extension, the eurozone) as a concrete example to better illustrate the discussion.

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Section: On Public Investment and Functional Financementioning

confidence: 88%

Defaultnomics: Making Sense of the Barro-Ricardo Equivalence in a Financialized World

Esposito

Mastromatteo

2019

SSRN Journal

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“…Using different components of fiscal policy, results from OLS method indicates public revenues rather than expenditure wields enormous positive effect on Nigerian GDP. Employing panel data on G20 countries between 2000-2010, Hanusch et al (2017) discover that public spending on innovation exerts more influence on economic growth rather than any other variables included in the study. On empirical association between fiscal policy and inflation, Afonso and Jalles (2017) investigates effect of fiscal policy on inflation dynamics on 54 countries from 1980-2013.…”

Section: Empirical Reviewmentioning

confidence: 99%

Fiscal Policy and Growth of Real Economic Activities in Nigeria (1980-2016)

Salako¹,

Oyeleke²

2019

Asian Journal of Economics and Empirical Research

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Several empirical studies have investigated the effect of fiscal policy on various macroeconomic variables such as inflation, debts, interest rates, unemployment and growth (GDP) for diverse economies, using variant methods. This paper examined the influence of fiscal policy on growth of real economic activities in Nigeria from 1980-2016, using 2010 as base year to adjust for price level. Secondary data sourced from Central Bank of Nigeria (CBN) (2016) were analysed. After verifying the stationarity property of the variables, Johansen cointegration test result revealed evidence of long run relationship among public revenues, expenditure, real GDP and inflation. The results from Vector Error Correction Method (VECM) showed that government expenditure positively and significantly impacted real economic activities' growth, but converse was the effect of public revenues on RGDP. The results, therefore, imply that government should cut tax to increase disposable income which has aptitude to enhance real aggregate production in Nigeria. Contribution of this paper to the literature:This study contributes to the existing literature by examining the effect of fiscal policy on growth of real economic activities in Nigeria with particular interest in period after 2008-2009 global financial crisis, using 2010 rebased real GDP.

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“…Запуск новой модели роста для российской экономики в аналитических и даже научных кругах часто связывают с условием стимулирования инноваций, проведения ин-дустриализации экономики. Действительно, долгосрочный экономический рост, особенно в развитых западных странах, предполагал интенсификацию усилий в области инноваций, развития науки и техники, а промышленные революции предопределили развитие мировой экономики на столетие вперед [3,5]. Подобные усилия, укладывающиеся в общий эволюционный формат изменений на коротких и длительных интервалах времени, являются обоснованными и адекватными.…”

Section: The Purpose Of the Article Is To Consider The Types Of Indusunclassified

Industrialization 4.0 and Technological Models Developments to Overcome the 2-D Effect

Sukharev¹

2020

Bull. S.-Ru. St. Techn. Univ. (NPI). Soc. and Econ. Sci.

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Fiscal Policy, Economic Growth and Innovation: An Empirical Analysis of G20 Countries

Cited by 17 publications

References 26 publications

Defaultnomics: Making Sense of the Barro-Ricardo Equivalence in a Financialized World

Defaultnomics: Making Sense of the Barro-Ricardo Equivalence in a Financialized World

Fiscal Policy and Growth of Real Economic Activities in Nigeria (1980-2016)

Industrialization 4.0 and Technological Models Developments to Overcome the 2-D Effect

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