02254nam a2200289 a 4500 1/51377 080128s2008 be u pdd 1 a0eng d 9789279082252 1016-8060 (print) 1725-3187 (online) KC-AI-08-300-EN-C 37266 GR-PeUP ΚΕΤ Αλφαβητική σειρά Arpaia, Alfonso. Government expenditure and economic growth in the EU : long-run tendencies and short term adjustment / Alfonso Arpaia, Alessandro Turrin. Brussels- Belgium : European Comission : Directorate-General for Economic and Financial Affairs, 2008. 51 σ. : διαγ. πιν. ; 30 εκ. European Economy. Economic papers ; This paper analyses both the long and the short-run relation between government expenditure and potential output in EU countries by means of pooled mean group estimation (Pesaran, Shin, and Smith (1999)). Results show that, over a sample comprising EU-15 countries over the 1970-2003 period, it cannot be rejected the hypothesis of a common long-term elasticity between cyclically-adjusted primary expenditure and potential output close to unity. However, the long-run elasticity decreased considerably over the decades and is significantly higher than unity in catching-up countries, in fast-ageing countries, in low-debt countries, and in countries with weak numerical rules for the control of government spending. The average speed of adjustment of government expenditure to its long-tem relation is 3 years, but there are significant differences across countries. Anglo-Saxon and Nordic countries exhibit in general a faster adjustment process, while adjustment in Southern European countries appears somehow slower. Economic Papers. Turrini, Alessandro 1966- European Commission : Directorate-General for Economic and Financial Affairs. Economic Papers February 2008, No 300. European Economy. Economic papers ; 300. INST UNIPILB KET 20090217 EEEP 300 EEEP 300 NOLOAN 23 1 http://ec.europa.eu/economy_finance/publications/publication_summary12026_en.htm.