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Optimal Size Of Government Spending. The Case Of European Union Member States

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Author Info

  • Mihai Mutascu

    (West University of Timisoara)

  • Marius Milos

    (Eftimie Murgu University Resita)

Abstract

The theme of public expenditure has been of great interest in the latest years.Focusing on government size, role of government and the efficiency of the public sector becomes aneven more important issue nowadays when the financial crisis has covered severly almost alleconomies worlwide. The debate has as starting point the keynesian belief (state interventionovercomes recession periods) but also the division of the economy between the public and theprivate sector. Goods and services could be provided by the state, but many times the private sectorseems to be more efficient. Using a specific econometrical analysis, the authors try to establish theoptimal size of the public sector in both old and new member states of the European Union, a levelthat fosters economic growth and suggest that, following this point, GDP should be left in thehands of the private sector.

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Bibliographic Info

Article provided by Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia in its journal Annales Universitatis Apulensis Series Oeconomica.

Volume (Year): 1 (2009)
Issue (Month): 11 ()
Pages: 45

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Handle: RePEc:alu:journl:v:1:y:2009:i:11:p:45

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Related research

Keywords: Key-words: public expenditure; economic growth; optimum level; public sector;

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References

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  1. Ulrike Mandl & Adriaan Dierx & Fabienne Ilzkovitz, 2008. "The effectiveness and efficiency of public spending," European Economy - Economic Papers 301, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  2. António Afonso & Ludger Schuknecht & Vito Tanzi, 2006. "Public Sector Efficiency: Evidence for New EU Member States and Emerging Markets," Working Papers Department of Economics 2006/01, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  3. António Afonso & Miguel St. Aubyn, 2006. "Relative Efficiency of Health Provision: a DEA Approach with Non-discretionary Inputs," Working Papers Department of Economics 2006/33, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  4. Philip J. Grossman, 1987. "The Optimal Size of Government," Development Research Unit Working Paper Series archive-06, Monash University, Department of Economics.
  5. Ohlsson, H. & Agell, J. & Lindh, T., 1995. "Growth and the Public Sector: A Critical Review Essay," Papers 1995-09, Uppsala - Working Paper Series.
  6. Afonso, António & Schuknecht, Ludger & Tanzi, Vito, 2003. "Public sector efficiency: an international comparison," Working Paper Series 0242, European Central Bank.
  7. Afonso, António & Furceri, Davide, 2010. "Government size, composition, volatility and economic growth," European Journal of Political Economy, Elsevier, vol. 26(4), pages 517-532, December.
  8. Afonso, Antonio & St. Aubyn, Miguel, 2006. "Cross-country efficiency of secondary education provision: A semi-parametric analysis with non-discretionary inputs," Economic Modelling, Elsevier, vol. 23(3), pages 476-491, May.
  9. Amartya SEN, 2000. "Work and rights," International Labour Review, International Labour Organization, vol. 139(2), pages 119-128, 06.
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Cited by:
  1. Alvis, Camilo & Castrillón, Cristian, 2011. "Tamaño óptimo del gasto público colombiano: una aproximación desde la teoría del crecimiento endógeno," BORRADORES DEPARTAMENTO DE ECONOMÍA 008986, UNIVERSIDAD DE ANTIOQUIA - CIE.

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