Services on Demand
Journal
Article
Indicators
- Cited by SciELO
- Access statistics
Related links
- Similars in SciELO
Share
Tékhne - Revista de Estudos Politécnicos
Print version ISSN 1645-9911
Abstract
CASTRO, Conceição. Política fiscal e crescimento económico. Tékhne [online]. 2006, n.5-6, pp.87-118. ISSN 1645-9911.
Recent developments in the theory of growth suggest that fiscal policy can have important effects on long-run growth. The aim of this article is to investigate the impact of fiscal policy on long-run growth, using a pannel data for the UE15 members (except Luxemburg), on the period 1965-2000. Based on Barro (1990) theoretical framework, we develop a model where the real growth rate is determined by variables of public finances, expecting that reducing distorcionary taxes or augmenting productive public expenditures enhance growth. In the case of the UE15, findings suggest that an increase in the size of government (expenditures or taxes) leads to slower growth in the long-run, and the decrease of labour or capital taxes, in particular, could promote growth in the long-run.
Keywords : Fiscal policy; long run growth.