Does the Effectiveness of Budget Deficit Vary between Welfare and Non-Welfare Countries?

نویسندگان

چکیده

Government intervention is imperative in the mixed economic system due to market failures, imperfection, pure public goods, and externalities. To this end, we measure comparative impact of budget deficits on growth, incorporating moderating role quality governance (QOG) for welfare non-welfare countries. We apply a newly developed econometric model, namely Panel Quantile Regression via Moment Conditions, considering scale location effect high heterogeneity our panel time series data over 1990–2020. Our empirical investigation shows that deficit promotes growth sustainability overall sample The analysis confirms countries while it impends Furthermore, QOG augments sustainable different circumstances Finally, results also demonstrate plays supportive nexus between full findings indicate effectiveness varies across In general, but its stringent rules restrictions somewhat slow down wheel process. provide several policy implications.

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ژورنال

عنوان ژورنال: Sustainability

سال: 2023

ISSN: ['2071-1050']

DOI: https://doi.org/10.3390/su15053901