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


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.


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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