Social Spending: Appropriate Instrument for Promoting Economic Growth in the Long-Term?
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F16%3A43910334" target="_blank" >RIV/62156489:43110/16:43910334 - isvavai.cz</a>
Result on the web
—
DOI - Digital Object Identifier
—
Alternative languages
Result language
angličtina
Original language name
Social Spending: Appropriate Instrument for Promoting Economic Growth in the Long-Term?
Original language description
The aim of this article is to examine the effects of changes in social spending on economic growth in the long term by using panel VAR model with impulse response functions. The empirical analysis is made on OECD countries in the period 1980-2014. Exogenous variables in the estimated panel VAR model are standard growth variables expressed as gross fixed capital formation and the aggregate capital productivity. Endogenous variables are then fiscal variables, i.e. the social spending and the tax revenues. A third endogenous variable is GDP per capita. The empirical analysis suggests that social spending have not impact on economic growth in the long term. Impulse response functions showed that changes in social spending (both impulse and step) affect economic growth only in the short term, the changes disappear within four years. It is possible to conclude that policy makers should use social spending as a tool for the creation of an appropriate institutional framework rather than an instrument for the purposeful promotion long-term economic growth.
Czech name
—
Czech description
—
Classification
Type
D - Article in proceedings
CEP classification
—
OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of 14th International Scientific Conference: Economic Policy in the European Union Member Countries
ISBN
978-80-7510-210-2
ISSN
—
e-ISSN
—
Number of pages
7
Pages from-to
102-108
Publisher name
Slezská univerzita v Opavě
Place of publication
Opava
Event location
Petrovice u Karviné
Event date
Sep 14, 2016
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000403638200011