Explaining the Size of the Public Sector
AbstractThis paper aims at providing an explanation for the size of the public sector based on the idea of 'social insurance'. The main assumption made is that the public sector is less efficient but also less volatile than the private sector. The 'demand-driven' level of the public sector that is derived as the one that maximizes the utility of the representative employed consumer depends positively on the variance of private output. An increase in the size of the public sector has a positive effect on expected employment and a negative effect on expected consumption. The size of the public sector set by the government which maximizes the probability of being reelected will be higher than the 'demand-driven' level if voters' preferences for employment is higher than the consumption loss associated with public employment. Copyright 1998 by Kluwer Academic Publishers
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by University of Essex, Department of Economics in its series Economics Discussion Papers with number 461.
Date of creation:
Date of revision:
Postal: Discussion Papers Administrator, Department of Economics, University of Essex, Wivenhoe Park, Colchester CO4 3SQ, U.K.
Other versions of this item:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- De Witte, Kristof & Moesen, Willem, 2010.
"Sizing the government,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/247201, Katholieke Universiteit Leuven.
- De Witte, Kristof & Moesen, Wim, 2009. "Sizing the Government," MPRA Paper 14785, University Library of Munich, Germany.
- De Witte, Kristof & Moesen, Willem, 2009. "Sizing the government," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/229414, Katholieke Universiteit Leuven.
- Francesca Gastaldi & Paolo Liberati, 2011. "Economic integration and government size: a review of the empirical literature," Financial Theory and Practice, Institute of Public Finance, vol. 35(3), pages 327-384.
- Afonso, António & Furceri, Davide, 2008.
"Government size, composition, volatility and economic growth,"
Working Paper Series
0849, European Central Bank.
- 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.
- António Afonso & Davide Furceri, 2008. "Government Size, Composition, Volatility and Economic Growth," Working Papers 2008/04, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon..
- Katsimi, Margarita, 1999.
"Elections and the size of the public sector,"
European Journal of Political Economy,
Elsevier, vol. 15(3), pages 441-462, September.
- Günther G. Schulze & Heinrich W. Ursprung, 1999. "Globalisation of the Economy and the Nation State," The World Economy, Wiley Blackwell, vol. 22(3), pages 295-352, 05.
- Roberta da Silva Vieira, 2009. "O Tamanho do Setor Público no Contexto do Federalismo: Um Modelo Aplicado aos Municípios Brasileiros," Discussion Papers 1415, Instituto de Pesquisa Econômica Aplicada - IPEA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Essex Economics Web Manager).
If references are entirely missing, you can add them using this form.