On the Optimal Government Size in Europe: Theory and Empirical Evidence
AbstractThis paper extimates the optimal government size for the representative European country by investigating the role of public services in the production process. The empirical results support the following conclusions: (1) government services are significantly productive; (2) there is no evidence that government services (on average) are not optimally provided; (3) the optimal government size is 16 percent (+/- 3 percent) for the average International Comparison Program European country; and (4) the marginal productivity of government services may be negatively related to government size. Copyright 1997 by Blackwell Publishers Ltd and The Victoria University of Manchester
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Bibliographic InfoArticle provided by University of Manchester in its journal The Manchester School of Economic & Social Studies.
Volume (Year): 65 (1997)
Issue (Month): 3 (June)
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Web page: http://www.socialsciences.manchester.ac.uk/disciplines/economics/
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- J. Stephen Ferris, 2010. "Fiscal Policy from a Public Choice Perspective," Carleton Economic Papers 10-10, Carleton University, Department of Economics.
- Hassan Aly & Mark Strazicich, 2000.
"Is Government Size Optimal in the Gulf Countries of the Middle East? An empirical investigation,"
International Review of Applied Economics,
Taylor & Francis Journals, vol. 14(4), pages 475-483.
- Hassan Aly & Mark Strazicich, 1999. "Is Government Size Optimal in the Gulf Countries of the Middle East? An Empirical Investigation," Working Papers 9911, Economic Research Forum, revised Apr 1999.
- Marta Simões & João Sousa Andrade & Adelaide Duarte, 2012. "Convergence and Growth: Portugal in the EU 1986-2010," GEMF Working Papers 2012-13, GEMF - Faculdade de Economia, Universidade de Coimbra.
- Alleyne, K.A. & Lewis-Bynoe, D. & Moore, W., 2004. "An Assessment of the Growth-Enhancing Size of Government in the Caribbean," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(3).
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