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Yoshihiko Tsukuda and Tatsuyoshi Miyakoshi
''Econometric Analysis of Fiscal Policy Budget Constraints in Endogenous Growth Models''
( 2010, Vol. 30 No.4 )
Kneller et al. (1999) examined the predictions of the public-policy endogenous growth models of Barro (1990) and others that suggest that unlike distortionary taxation and productive expenditures, nondistortionary taxation and nonproductive expenditures have no direct effect on the rate of growth. This paper provides an econometric theory with their empirical methodology and applies to work by Kneller et al. (1999) as a numerical example to show how the econometric theory works in practice. This paper also confirms from the viewpoint of econometric analysis that their study supports the Barro (1990)'s predictions.
Keywords: Fiscal budget constraint; multicollinearity; omitted variables, econometrics
JEL: C1 - Econometric and Statistical Methods: General
H5 - National Government Expenditures and Related Policies National Government Expenditures and Related Policies: General
Manuscript Received : May 12 2010 Manuscript Accepted : Nov 08 2010

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