The influence of tax and expenditure policies on economic growth in The Netherlands: An empirical analysis

This paper explores the influence of government policies in explaining output, emploment and investment in The Netherlands during the period 1966-1989. The paper develops an empirical macroeconomic model estimated with annual data relating to the period 1958-1989. It finds that restrictive fiscal policies in the eighties have had adverse short-term effects on output and employment. Furthermore, the drop in the rate of increase in tax and social security contribution rates in this period has boosted output, employment and investment. However, the shift in public expenditure from investment to c... Mehr ...