This paper investigates the effects of changes in fiscally-induced and trade-related variables on the rate of economic growth. Adopting the simplest possible version of the Keynesian/Ramsey paradigm, it is showed that both the level as proxy for the short-run impact, and the change as proxy for...

In this paper, we examine the view of capital fundamentalism claiming that national fiscal policies, with public investment being subject to adjustment costs, can be considered as the primary determinant of economic growth. According to our analysis, a country that experiences a low rate of...