Arpaia, Alfonso; Turrini, Alessandro - Directorate-General Economic and Financial Affairs, … - 2008
This paper analyses both the long and the short-run relation between government expenditure and potential output in EU countries by means of pooled mean group estimation (Pesaran, Shin, and Smith (1999)). Results show that, over a sample comprising EU-15 countries over the 1970-2003 period,...