@techreport{NBERw4499,
 title = "Fiscal Policy and Economic Growth: An Empirical Investigation",
 author = "William Easterly and Sergio Rebelo",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "4499",
 year = "1994",
 month = "May",
 URL = "http://www.nber.org/papers/w4499",
 abstract = {This paper describes the empirical regularities relating fiscal policy variables, the level of development and the rate of growth.  We employ historical data, recent cross-section data, and newly constructed public investment series.  Our main findings are: (i) there is a strong association between the development level and the fiscal structure: poor countries rely heavily on international trade taxes, while income taxes are only important in developed economies; (ii) fiscal policy is influenced by the scale of the economy, measured by its population; (iii) investment in transport and communication is consistently correlated with growth while the effects of taxation are difficult to isolate empirically.},
}