Growth and the Welfare State in the EU: A Causality Analysis

In this paper, we test for causality between GDP growth andsocial protection expenditure in the European Union. To that end,we apply Hsiao's (1981) sequential procedure to data for twelveEU countries along the 1970–1994 period. Our results suggestthat, for Belgium, Germany, Ireland, Luxembourg, the Netherlands,Portugal, and Spain, causality runs only from social protectiongrowth to GDP growth, while for Denmark, France, Greece, Italy,and the United Kingdom, no causality is found between socialprotection growth and GDP growth.     

Does tenure in office affect regional growth? The role of?public capital productivity

We study the impact of tenure in office on economic performance. We evaluate the relationships between tenure in office and GDP growth, public capital growth, and public capital productivity using data for Spanish regions during the period 1980?C1998. We find that tenure decreases the impact of public capital growth on GDP growth. Our results suggest that tenure affects GDP growth negatively through a decrease in public capital productivity.