Fiscal Policy and Labor Productivity in the Spanish Economy: A Time Series Analysis
Keywords:
fiscal policy, labor productivity, public capital, endogenous growth, SpainAbstract
In this paper we use an endogenous growth model with productive public capital to investigate the degree to which observed Spanish fiscal policies can account for the slowdown in the growth rates of labor productivity since 1970. The model implies a long-run relationship exists between labor productivity, the ratio of public-to-private capital, the average tax rate, and the stock of private capital per employee. The model is estimated for the Spanish economy, using annual data for the period 1964-1997.Downloads
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