European Economy. Occasional Papers
Salvador Barrios, Lucio Pench and Andrea Schaechter
The quality of public finances and economic growth. Proceedings to the annual Workshop on public finances (28 November 2008) - Salvador Barrios, Lucio Pench and Andrea Schaechter(3 MB)
(European Economy. Occasional Papers. 45. March 2009.
Brussels. pdf. 245pp. Tab. Graph. Ann. Bibliogr. Free.)
KC-AH-09-045-EN-C ISBN: 978-92-79-11259-1 ISSN: 1725-3195
Summary for non-specialists(166 kB)
What role can better quality of public finances play in supporting Europe's long-term economic growth prospects?
This question was at the centre of the 2008 European Commission workshop on public finances. It was largely motivated by the pressures put on European economies and their budgets from ageing populations and increased globalisation. However, the on-going financial crisis has given the issue an even greater prominence. Current fiscal stimulus packages not only include short-term measures, but particularly aim to also have a lasting impact on growth, often referred to as ensuring a high quality of public finances.
The Workshop papers presented and analysed a number of policy options, ranging from the role of growth-enhancing public expenditure, in particular public infrastructure, and more generally the provision of public capital, the role of institutions, tax policy and the interaction of short-term counter-cyclical fiscal policy and long-term growth.
JEL classification: E62, H11, H20, H42, H50, H54, H60