The relationship between budgetary expenditure and economic growth in Poland

Abstract This paper investigates the association between different kinds of budgetary expenditure and economic growth of Poland. The empirical analysis makes use of linear and nonlinear Granger causality tests to evaluate the applicability of Wagner’s Law and that of the contrasting Keynesian theory.We employ aggregate and disaggregate data with the sub-categories of most important budgetary expenditure, including health care and social security, education and science, national defence and public security expenditure and government administration expenditure for the period Q1 2000 to Q3 2008. This causality analysis indicates that total relation between budgetary expenditure and economic growth is consistent with Keynesian theory. The results of our computations have important policy implications. In case of Poland the health care expenditure was found to be as important for economic growth as expenditures on education and science. Furthermore, in order to stimulate economic growth, Polish government should consider reallocating some of national defence, public security and government administration expenditure to health care, social security, education and science expenditure.Government expenditure · Linear and nonlinear causality · Bootstrap techniques

The relationship between budgetary expenditure and economic growth in Poland

This paper investigates the association between different kinds of budgetary expenditure and economic growth of Poland. The empirical analysis makes use of linear and nonlinear Granger causality tests to evaluate the applicability of Wagner’s Law and that of the contrasting Keynesian theory.We employ aggregate and disaggregate data with the sub-categories of most important budgetary expenditure, including health care and social security, education and science, national defence and public security expenditure and government administration expenditure for the period Q1 2000 to Q3 2008. This causality analysis indicates that total relation between budgetary expenditure and economic growth is consistent with Keynesian theory. The results of our computations have important policy implications. In case of Poland the health care expenditure was found to be as important for economic growth as expenditures on education and science. Furthermore, in order to stimulate economic growth, Polish government should consider reallocating some of national defence, public security and government administration expenditure to health care, social security, education and science expenditure

The relationship between budgetary expenditure and economic growth in Poland

Abstract This paper investigates the association between different kinds of budgetary expenditure and economic growth of Poland. The empirical analysis makes use of linear and nonlinear Granger causality tests to evaluate the applicability of Wagner’s Law and that of the contrasting Keynesian theory.We employ aggregate and disaggregate data with the sub-categories of most important budgetary expenditure, including health care and social security, education and science, national defence and public security expenditure and government administration expenditure for the period Q1 2000 to Q3 2008. This causality analysis indicates that total relation between budgetary expenditure and economic growth is consistent with Keynesian theory. The results of our computations have important policy implications. In case of Poland the health care expenditure was found to be as important for economic growth as expenditures on education and science. Furthermore, in order to stimulate economic growth, Polish government should consider reallocating some of national defence, public security and government administration expenditure to health care, social security, education and science expenditure

The relationship between budgetary expenditure and economic growth in Poland

Abstract This paper investigates the association between different kinds of budgetary expenditure and economic growth of Poland. The empirical analysis makes use of linear and nonlinear Granger causality tests to evaluate the applicability of Wagner’s Law and that of the contrasting Keynesian theory.We employ aggregate and disaggregate data with the sub-categories of most important budgetary expenditure, including health care and social security, education and science, national defence and public security expenditure and government administration expenditure for the period Q1 2000 to Q3 2008. This causality analysis indicates that total relation between budgetary expenditure and economic growth is consistent with Keynesian theory. The results of our computations have important policy implications. In case of Poland the health care expenditure was found to be as important for economic growth as expenditures on education and science. Furthermore, in order to stimulate economic growth, Polish government should consider reallocating some of national defence, public security and government administration expenditure to health care, social security, education and science expenditure

Fiscal transparency and policy rules in Poland

This paper assesses the current stance and desirable progress in the implementation of fiscal transparency and rules in Poland. An index of transparency based on Report on the Observance of Standards and Codes (ROSC), with some modifications, is also constructed in this paper, followed by proposals for making transparency and fiscal rules more efficient within Poland's fiscal policy. This study attempts to answer the following questions: Firstly, to what extent is fiscal policy transparent in the context of the standards set by the EU's regulations and the IMF's ROSC? Secondly, have the fiscal rules adopted by Poland proved to be successful in establishing fiscal policy discipline? Finally, what still needs to be changed to make both transparency and fiscal rules more efficient for the conduct of fiscal policy? To set the work in context we also provide an overview of recent advances in both the theoretical and empirical literature on fiscal transparency and rules

The Effect of the Financial Crisis on the Taxation of Consumption, Labour, and Capital in the European Union

4. For the purpose of this paper we used statistics prepared according to the methodology adopted by the European Commission, published in “Taxation trends in the European Union”, Eurostat 2012.Materiały statystyczne wykorzystane w artykule pochodzą z opublikowanego przez Komisję Europejską raportu: „Taxation trends in the European Union”, Eurostat 2012

The Impact of Defense Expenditure on Economic Growth

The goal of this paper is to analyze the relationship between defense expenditures and economic growth in Romania, trying to find out the existence, direction and intensity of this connection. The methods which I used are cluster analysis, quintile analysis, regression technique and Granger causality. The results suggest that in Romania there is a negative correlation. A potential cause of the negative effect of defense expenditures on economic growth in Romania is the high proportion of the spending on equipment and other operational spending. Also I have considered the implications of the budgetary restriction – the limited resources might be given priority for other programs.fiscal policy, public expenditures, defense expenditures, economic growth, budget constraint

The fiscal and monetary institutions of CESEE countries

This working paper by Zsolt Darvas and Valentina Kostyleva examines the role of fiscal and monetary institutions in macroeconomic stability and budgetary control in CESEE (central, eastern and south eastern European) countries in comparison to other OECD countries. A new budgetary discipline index suggests that fiscal institutions are weaker in most CESEE countries than in non-CESEE OECD countries. The sizeable debt/GDP ratio declines in CESEE before the crisis was largely the consequence of a very favourable relationship between the economic growth rate and the interest rate, but such a favourable relationship is not expected in the future. Econometric estimations confirm that better monetary institutions reduce macroeconomic volatility and that countries with better budgetary procedures have better fiscal outcomes. A version of this publication was also released on the OECD Journal on Budgeting

The relationship between public balance and inflation in Europe

The study considers some of the factors determining budget balance. In particular, it investigates the relationship between budget balance and inflation. The analysis focuses on European states in the period between 1999 and 2007, and concludes that the relationship between budget balance and inflation is not demonstrable. In the literature, attempts to quantify the relationship between the two factors have faced severe difficulties. Inflation influences both the revenue side and the expenditure side of the budget, often increasing one and reducing the other at the same time. These effects might balance each other out, leaving the budget balance unchanged. --budget balance,budget deficit,inflation