Government spending on infrastructure boosts economic growth in European Union.
The article examines how different types of government spending and taxation affect economic growth in the European Union. The researchers used data analysis techniques to study the impact of various fiscal policies on the economy. They found that spending on infrastructure positively influences economic growth, while spending on human capital has a negative impact. Defense spending does not seem to affect growth, and deficits actually have a positive relationship with economic growth. Labor and capital are also important factors in economic growth models.