Quality of Public Finances and Growth

47 Pages Posted: 28 Feb 2005

See all articles by António Afonso

António Afonso

University of Lisbon - ISEG (School of Economics and Management); UECE (Research Unit on Complexity and Economics); ISEG Lisbon School of Economics and Management,Universidade de Lisboa; REM - Research in Economics and Mathematics

Werner Ebert

Bundesministerium der Finanzen

Ludger Schuknecht

European Central Bank (ECB)

Michael Thöne

FiFo Institute for Public Economics, University of Cologne

Date Written: February 2005

Abstract

In this paper we review the linkages between the quality of public finances, that is, the level and composition of public expenditure and its financing via revenue and deficits, and economic growth. We review the various channels through which public finances affect growth and its underlying determinants (institutional framework, employment, savings and investment, innovation). The paper addresses the approaches used to assess the performance and efficiency of public spending, and surveys the empirical findings on the impact of fiscal variables on sustained economic growth.

Keywords: quality of public finances, efficiency, growth

JEL Classification: H50, O40

Suggested Citation

Afonso, António and Ebert, Werner and Schuknecht, Ludger and Thöne, Michael, Quality of Public Finances and Growth (February 2005). Available at SSRN: https://ssrn.com/abstract=663965 or http://dx.doi.org/10.2139/ssrn.663965

António Afonso (Contact Author)

University of Lisbon - ISEG (School of Economics and Management) ( email )

R. Miguel Lupi, 20
Lisbon, 1248-078
Portugal
+351 21 392 5985 (Phone)
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HOME PAGE: http://www.iseg.ulisboa.pt/aquila/homepage/aafonso/research

UECE (Research Unit on Complexity and Economics) ( email )

Rua Miguel Lupi 20
Lisbon, 1249-078
Portugal
+351-213 925 912 (Phone)
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HOME PAGE: http://uece.rc.iseg.ulisboa.pt/

ISEG Lisbon School of Economics and Management,Universidade de Lisboa ( email )

Rua do Quelhas 6
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Portugal

REM - Research in Economics and Mathematics ( email )

ISEG, Universidade de Lisboa
Rua Miguel Lupi, 20
Lisboa, 1249-078
Portugal

HOME PAGE: http://rem.rc.iseg.ulisboa.pt/

Werner Ebert

Bundesministerium der Finanzen ( email )

Detlev-Rohwedder-Haus
Wilhelmstrße 97
Berlin, D-10117
Germany

Ludger Schuknecht

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
+49 69 1344 6494 (Phone)
+49 69 1344 7809 (Fax)

Michael Thöne

FiFo Institute for Public Economics, University of Cologne ( email )

Wörthstr. 26
Cologne, D-50668
Germany
+49-221-1397510 (Phone)
+49-221-13975111 (Fax)

HOME PAGE: http://www.fifo-koeln.de

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