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Public Choice

, Volume 131, Issue 1–2, pp 157–175 | Cite as

The growth effects of fiscal policy in Greece 1960–2000

  • Konstantinos Angelopoulos
  • Apostolis PhilippopoulosEmail author
Original Article

Abstract

This empirical paper uses annual data for Greece 1960–2000 to study the link between fiscal policy and economic growth. Our regression analysis implies that, although a smaller public sector can be good for growth, it is necessary to look beyond size; the composition and quality/efficiency of the public sector are equally important. The policy lesson is that a smaller government share in GDP, a reallocation of funds away from the wage bill to public investment, and an improvement in government quality/efficiency can become engines of long-term growth.

Keywords

Fiscal policy Economic growth 

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Copyright information

© Springer Science+Business Media, LLC 2006

Authors and Affiliations

  • Konstantinos Angelopoulos
    • 1
    • 2
  • Apostolis Philippopoulos
    • 3
    Email author
  1. 1.Athens University of Economics and BusinessAthensGreece
  2. 2.University of StirlingScotlandUK
  3. 3.Department of EconomicsAthens University of Economics and Business, and CESifoAthensGreece

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