Sizing the government
AbstractIs there such a thing as an optimal government size? We investigate by the non-parametric Data Envelopment Analysis (DEA) the so-called `Armey curve' which claims an inverted U-shaped relationship between government size and economic performance. The DEA scores are linked to control variables as initial per capita income, openness, population density, urbanization, country size and family size. For 23 OECD-countries we estimate the country specific efficiency scores, which reveal the extent to which a country uses excess public resources to achieve the observed growth rate of GDP.
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Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 145 (2010)
Issue (Month): 1 (October)
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Web page: http://www.springerlink.com/link.asp?id=100332
Data envelopment analysis; Government size; Public sector performance; Armey-curve; H10; H21; H31;
Other versions of this item:
- H10 - Public Economics - - Structure and Scope of Government - - - General
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
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