Final version A New Framework for Testing the Effect of Government Spending on Growth and Productivity

@inproceedings{Henrekson2008FinalVA,
  title={Final version A New Framework for Testing the Effect of Government Spending on Growth and Productivity},
  author={Magnus Henrekson},
  year={2008}
}
Does government spending have a positive or negative effect on economic growth? The results of earlier empirical studies give mixed results. In this study we suggest a new method for testing the effect of different kinds of government expenditure on productivity growth in the private sector. The focus on productivity in the private sector and the use of disaggregated data makes it possible to avoid or mitigate a number of methodological problems. The major conclusions, which are quite robust… CONTINUE READING

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