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Searching for A Restraint on the European Leviathan

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  • Patonov Nikolay Andonov

    (Faculty of Economics South-West University “Neofit Rilski” Blagoevgrad, Bulgaria)

Abstract

The purpose of this paper is to analyze the effect of fiscal decentralization on the government size in the European Union member states. The Two-Stage Least squares procedure is applied on the panel data for the period 2000-2010. The regression model which is constructed includes the total amount of government tax revenue as a dependent variable. The revenue and expenditure variable for fiscal decentralization are put as main explanatory variables. The empirical results support the theoretical assumptions for the restrictive influence of the revenue decentralization as well as the increasing effect of the expenditure decentralization on the government intrusion into economy measured via the amount of tax revenue.

Suggested Citation

  • Patonov Nikolay Andonov, 2013. "Searching for A Restraint on the European Leviathan," Scientific Annals of Economics and Business, Sciendo, vol. 60(2), pages 1-16, December.
    • Handle: RePEc:vrs:aicuec:v:60:y:2013:i:2:p:16:n:10
    DOI: 10.2478/aicue-2013-0027
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    References listed on IDEAS

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    Cited by:

    1. Ivan Todorov, 2016. "Currency Integration of the New EU Member Countries," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 82-117.
    2. Ivan Todorov & Kalina Durova, 2016. "Economic Growth of Bulgaria and Its Determinants," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-35.
    3. Ivan Todorov, 2016. "Supply-Side Factors of Economic Growth in Bulgaria," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 159-174, June.

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