Government size, composition, volatility and economic growth

This paper analyses the effects in terms of size and volatility of government revenue and spending on growth in OECD and EU countries The results of the paper suggest that both variables are detrimental to growth In particular looking more closely at the effect of each component of government revenue and spending the results point out that 1) indirect taxes (size and volatility) ii) social contributions (size and volatility) in) government consumption (size and volatility) iv) subsidies (size) and v) government investment (volatility) have a sizeable negative and statistically significant effect on growth (C) 2010 Elsevier B V All rights reserved