In this paper we empirically study the relation between public debt and economic growth. We analyze how the public debt to GDP ratio at a certain point in time is correlated with the GDP growth rate in the following period, where we consider a one-year time span, a three-years time interval and a five-years interval. Using panel data comprising seven developed countries from 1970-2012, we estim...

We provide a lifecycle framework for comparing the insurance value of disability benefits and the incentive cost. We estimate the risks that individuals face and the parameters governing the disability insurance program using longitudinal US data on consumption, health, disability insurance, and wages. We characterize the economic effects of disability insurance and study how policy reforms imp...

Since their inception in the 1930s, U.S. welfare and income support programs have played an important role in providing benefits to children. Unlike programs directly targeted to children, however, welfare programs are designed to produce economic and employment impacts on adults, so that any effects on children would be indirect. This article explores the influence of such programs on children...

The author estimates the effect of the Family Independence Program PIP) on the economic self-sufficiency of welfare recipients in Washington state. He finds that, as designed, enrollment in employment and training activities increased under FIP. FIP had no impact, however, on employment rates and earnings, and it actually led to increases in welfare participation and welfare benefits. According...

Empirical results through a fixed effects regression model show that government size has a negative effect on growth mainly through hampering capital accumulation. When a sample is divided into OECD and non-OECD countries, the negative effect of government size on capital accumulation persists for non-OECD countries but not for OECD countries.

Using panel data for 24 (OECD) countries during the period 1980–2004 this study examines how social trust affects fertility. The major finding through the random effects approach is that the social trust increases the fertility rate. A 1% rise in the trust rate leads to an increase in fertility by 0.01 points. The results presented here suggest that in developed countries, trust underlies the d...