2006–2010

Growth Effects of Government Expenditure and Taxation in Rich Countries. A Reply

Reprint No. 2006:1

Author(s): Stefan Fölster and Magnus HenreksonYear: 2006 Title: European Economic Review Volume (No.): 50 (1) Pages: 219–221


Agell et al. (2005) criticise our earlier findings (Fölster and Henrekson 2001) of a robust negative relationship between government size and economic growth for an extended sample of rich countries. In this short paper it is argued that their critique is unfounded. Most importantly, the critique does not deal with the main result of the original study, namely that the most complete specifications for assessing the relationship between government expenditure and growth in rich countries are robust even according to stringent extreme bounds criteria.


Reference:
Fölster, Stefan and Magnus Henrekson (2006), "Growth Effects of Government Expenditure and Taxation in Rich Countries. A Reply". European Economic Review 50(1), 219–221.

Magnus Henrekson

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Ph: +46 (0)8 665 4502
magnus.henrekson@ifn.se

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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