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• Interdependence between government redistribution and economic growth in the long run

  132-146

  Levente Nadasi

  Views:

  174

  The present paper aims to study changes in the degree of government redistribution with an institutional, historical, statistical and model-like approach. I investigate the impact of changes in redistribution on long-term economic growth in 30 European countries. It is generally stated that government spending/GDP ratio has been continuously increasing (in terms of trend) in Europe since the 1870s. I examine how the size of the states affects economic growth, and what other factors influence the long-run relationship between these two variables. My hypothesis is that in developed countries with high government
  redistribution it has been an impediment to economic growth in the long run. Finally, I illustrate this hypothesis with a statistical analysis of 30 European countries.

  Journal of Economic Literature (JEL) Classification: E66, H62, C10

• A literature review of Happiness and Economics and guide to needed research

  117-131

  Thomas Wiese

  Views:

  664

  Happiness and Economics as a new branch of behavioural economics has had a major impact on economic theory and economic policy: Several studies have been published in the last 20 years in leading journals. Furthermore, several governments have decided to collect data about the well-being of their citizens. The author claims that utility cannot only be measured by the choices individuals do: Reported happiness and life satisfaction data is also an acceptable empirical estimate for individual utility. Consequently, happiness research can bear new knowledge and important understanding of human welfare. Therefore, this paper gives an overview of the existing literature. Methods and approach of scholars is critically analysed and shortcomings are discussed. Thereafter, findings on major economic issues like growth, unemployment and inflation are presented. Besides, governmental policy and implications for society are debated. Lastly, future research possibilities are mentioned.

  Journal of Economic Literature (JEL) Classification: D60 D63 I31

• Openness and growth

  126-134

  Peter Foldvari

  Views:

  128

  The classical theory of commerce encourages the liberalization of international trade on the grounds that this contributes considerably to the growth of welfare. This study sets out to explore this hypothesis empirically by analysing the relationship between external market openness and per capita GDP examined in twenty-two OECD countries between 1950 and 2000. The results bear out to support the existence of a positive correlation. The novelty of the study is that the author pays special attention to the temporal aspects of the interaction between openness and per capita GDP which can be characterised in terms of a nonstationary and nonlinear trend, as expected.