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Efficient government size: France in the 20th century

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  • Facchini, François
  • Melki, Mickaël

Abstract

The benefits and costs of government suggest an efficient government size. We investigate efficient government size by analyzing the relation between public spending and real GDP for France in the period 1896–2008. The results show a co-integration nonlinear relationship. Our time-series data on France represents one of the longest periods studied in literature. Our empirical findings suggest that efficient government size measured by public spending was reached when public spending was around 30% of GDP. Conclusions point to particularities of countries that suggest efficient government size is specific to different countries.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 31 (2013)
Issue (Month): C ()
Pages: 1-14

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Handle: RePEc:eee:poleco:v:31:y:2013:i:c:p:1-14

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Web page: http://www.elsevier.com/locate/inca/505544

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Keywords: Public spending; Optimal government size; Economic growth; Nonlinear cointegration;

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Cited by:
  1. Kahana, Nava & Klunover, Doron, 2014. "Rent Seeking and the Excess Burden of Taxation," IZA Discussion Papers 8160, Institute for the Study of Labor (IZA).
  2. Alimi, R. Santos, 2014. "Does Optimal Government Size Exist for Developing Economies? The Case of Nigeria," MPRA Paper 56073, University Library of Munich, Germany.
  3. repec:hal:cesptp:halshs-00662838 is not listed on IDEAS
  4. Facchini, Francois, 2014. "The determinants of public spending: a survey in a methodological perspective," MPRA Paper 53006, University Library of Munich, Germany.
  5. Taner Turan, 2014. "Optimal Size of Government in Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 4(2), pages 286-294.
  6. François Facchini & Mickaël Melki, 2013. "Political Ideology and Economic Growth: Evidence from the French Democracy," Documents de travail du Centre d'Economie de la Sorbonne 13077, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  7. Hernán Vallejo, 2012. "Mainstream Economics in the Early 21st Century: What, How and How Far," DOCUMENTOS CEDE 010013, UNIVERSIDAD DE LOS ANDES-CEDE.
  8. François Facchini & Mickaël Melki, 2012. "Political Ideology and Economic Growth in a Democracy: The French Experience, 1871 - 2009," Documents de travail du Centre d'Economie de la Sorbonne 12003, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  9. Facchini, François, 2014. "Retour sur la crise et les politiques mises en œuvre : une perspective autrichienne
    [Past and Future of the crisis]
    ," MPRA Paper 52984, University Library of Munich, Germany.

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