Growth and Relative Living Standards - Testing Barriers to Riches on Post-War Panel Data

42 Pages Posted: 22 May 2008

See all articles by David Meenagh

David Meenagh

Cardiff University Business School

Patrick Minford

Cardiff University Business School; Centre for Economic Policy Research (CEPR)

Jiang Wang

Cardiff University - Cardiff Business School

Date Written: May 2007

Abstract

The effect of business tax and regulation on growth, together with potential effects of government spending on education and R&D, is embodied in a model of a small open economy with growth choices. The structural model is estimated on post-war panel data for 76 countries and the bootstrap is used to produce the model's sampling variation for the analysis of panel regressions of growth. Statistical rejection can occur at either the structural or the growth regression stage. The models featuring government spending on education and R&D are rejected while that with business taxation is accepted.

Keywords: bootstrap testing, business regulation, business taxation, government R&D, growth, living standards, public education, structural model

JEL Classification: C52, O41, O57

Suggested Citation

Meenagh, David and Minford, Patrick and Wang, Jiang, Growth and Relative Living Standards - Testing Barriers to Riches on Post-War Panel Data (May 2007). , Vol. , pp. -, 2007. Available at SSRN: https://ssrn.com/abstract=1136027

David Meenagh

Cardiff University Business School ( email )

Aberconway Building
Colum Drive
Cardiff, CF10 3EU
United Kingdom
+44 29 2087 5198 (Phone)
+44 29 2087 4419 (Fax)

Patrick Minford (Contact Author)

Cardiff University Business School ( email )

Aberconway Building
Colum Drive
Cardiff, CF10 3EU
United Kingdom
+44 29 2087 5728 (Phone)
+44 29 2087 4419 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Jiang Wang

Cardiff University - Cardiff Business School ( email )

Aberconway Building
Colum Drive
Cardiff, CF10 3EU
United Kingdom

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