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.

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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Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective


Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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