Government size, composition of public spending and economic growth in Brazil

Divino, José Ângelo; Maciel, Daniel T. G. N.; Sosa, Wilfredo

doi:10.1016/j.econmod.2020.06.001

Cited by 27 publications

(14 citation statements)

References 44 publications

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“…On the other hand, the distortions associated with tax-based plans are larger the longer lasting is the increase in the tax burden. 2 Austerity policies are rarely implemented in isolation: accompanying policies matter. Clearly monetary policy has a role: by lowering interest rates and buying government bonds, the central bank can help.…”

Section: Why Might Expenditure-and Tax-based Austerity Have Differentmentioning

confidence: 99%

Effects of Austerity: Expenditure- and Tax-based Approaches

Alesina

Favero

Giavazzi

2019

Journal of Economic Perspectives

121

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We review the debate surrounding the macroeconomic effects of deficit reduction policies (austerity). The discussion about "austerity" in general has distracted commentators and policymakers from a very important result, namely the enormous difference, on average, between expenditure- and tax-based austerity plans. Spending-based austerity plans are remarkably less costly than tax-based plans. The former have on average a close to zero effect on output and lead to a reduction of the debt/GDP ratio. Tax-based plans have the opposite effect and cause large and long-lasting recessions. These results also apply to the recent episodes of European austerity, which in this respect were not especially different from previous cases.

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Section: Why Might Expenditure-and Tax-based Austerity Have Differentmentioning

confidence: 99%

Effects of Austerity: Expenditure- and Tax-based Approaches

Alesina

Favero

Giavazzi

2019

Journal of Economic Perspectives

121

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“…In another study by Dinh Thanh and Canh (2019) the dynamic relation between the governmental spending, consumer spending and consumption patterns and economic growth were evaluated as well. A recent study by Divino et al (2020) investigated the relationship among the optimal composition of governmental spending and size of the government and the economic growth from the perspective of Brazil. The study used the CES substitution production function in order to calculate the effective growth effects on the economy.…”

Section: Discussionmentioning

confidence: 99%

“…The theoretical and empirical efforts and literature have dedicated a significant amount of work to evaluate these problems and issues, and Divino, Maciel, and Sosa (2020) for instance completely evaluated the exclusive influences of government spending and policies on the overall economic development and productivity of the country. In a pioneering effort, Bouakez, Guillard, and Roulleau-Pasdeloup (2016) also suggested a model evaluate the direct connection between the composition of public expenditure (PE) and economic development.…”

Section: Introductionmentioning

confidence: 99%

Government Size, the Composition of Public Spending and Economic Growth in Netherland

Nartea

Hernandez

2020

Journal of Accounting, Business and Finance Research

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The performance of the fiscal policy is influenced significantly by the relationships and associations among the governmental size, the composition public and private spending and the economic growth of a country. The primary goal of this research study is to evaluate the impact of these factors and to evaluate the significance of these factors in the economic growth of the Netherlands. The economy of Netherlands is characterized as the 17th largest in the world and it presents stable and sustainable growth. In this altercation the researcher aimed to evaluate the significance of the governmental spending and size. For this purpose, the researcher used the data from 2004-2014 from the 12 provinces of Netherlands. The data was subjected to a unit root analysis so that the stationarity properties of the panel data can be evaluated. The unit root test results showed that the variables were stationary at I(0). In order to abstain from the endogeneity issues that can be present in such types of datasets the researcher used level and per capita variables as a robustness evaluation. The empirical framework was based upon the Cobb-Douglas production function and used the modern CES substitution elasticities to compute as the inputs of private capital and government spending in the production function. The nonlinear leastsquares regression estimation method was used to evaluate the impact of the variables upon one another. The results indicate that the public investments and current governmental disbursements are conjoined in order to account for the inflexibility of the communal budget. Moreover, the governmental spending was found to be greater than 85 percent indicating that the provincial sectors are focused upon the stimulation of the economy.

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“…Specifically, if handled effectively, government spending and expenditure will positively affect economic growth (Divino et al, 2020). Therefore, states with better institutional systems are bound to have a lower negative impact on growth than the weak institutional system of high impact on growth.…”

Section: Government Effectivenessmentioning

confidence: 99%

The Moderating Effects of Institutional Qualities and Energy Use on the Economic Output

Zakari¹,

Toplak²

2020

Preprint

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Energy and institutional quality are two factors that determine economic output, but these two factors are often neglected in the search for economic output. Therefore, this study examines the relative importance of energy use and its interaction with institutional quality for economic output. We employ a robust econometric estimation technique on a panel sample of 21 African countries between 2002-2019. Our results show that energy use is significant and negatively related to economic output while moderating terms of institutional quality are significantly associated with economic output, but the direction of the association depends on the specific quality. We find the moderating term control of corruption and government effectiveness to be negative and significantly associated with economic output, whilst political stability, regulatory quality, rule of laws, voice, and accountability positively impact. Our results imply that improved economic output is possible when there are specific institutional strategies.

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Government size, composition of public spending and economic growth in Brazil

Cited by 27 publications

References 44 publications

Effects of Austerity: Expenditure- and Tax-based Approaches

Effects of Austerity: Expenditure- and Tax-based Approaches

Government Size, the Composition of Public Spending and Economic Growth in Netherland

The Moderating Effects of Institutional Qualities and Energy Use on the Economic Output

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