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The Optimal Size of Government

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Abstract

In the economic analysis of the theory of government, two views of government are evident. The Pigovian view sees government as a benevolent actor striving to correct for the inadequacies and excesses of an unrestrained marketplace. The 'Public Choice' view of government portrays government as the tool of special interest groups as likely to generate distortions as to correct them. In this paper, a model of government that incorporates both views will be developed and then empirically tested.

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Bibliographic Info

Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number archive-06.

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Length: 17 pages
Date of creation: 1987
Date of revision:
Publication status: Published in Public Choice, Vol. 53, No. 2 (1987), pp. 131-147
Handle: RePEc:mos:moswps:archive-06

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Postal: Department of Economics, Monash University, Victoria 3800, Australia
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Web page: http://www.buseco.monash.edu.au/eco/
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References

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  1. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135.
  2. Sam Peltzman, 1980. "The Growth of Government," University of Chicago - George G. Stigler Center for Study of Economy and State 1, Chicago - Center for Study of Economy and State.
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Cited by:
  1. Erich Weede, 1991. "The impact of state power on economic growth rates in OECD countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 25(4), pages 421-438, November.
  2. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
  3. Bourguignon, Francois, 2005. "The Effect of Economic Growth on Social Structures," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 27, pages 1701-1747 Elsevier.
  4. Josheski, Dushko & Lazarov, Darko & Koteski, Cane, 2011. "Analysis of the optimal size of the government consumption," MPRA Paper 32983, University Library of Munich, Germany.
  5. Crutzen, Benoît S.Y. & Sahuguet, Nicolas, 2009. "Redistributive politics with distortionary taxation," Journal of Economic Theory, Elsevier, vol. 144(1), pages 264-279, January.
  6. Mihai Mutascu & Marius Milos, 2009. "Optimal Size Of Government Spending. The Case Of European Union Member States," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 45.
  7. repec:hal:journl:halshs-00654363 is not listed on IDEAS
  8. Magazzino, Cosimo & Forte, Francesco, 2010. "Optimal size of government and economic growth in EU-27," MPRA Paper 26669, University Library of Munich, Germany.
  9. Diego Enrique Pinilla Rodríguez & Juan de Dios Jiménez Aguilera & Roberto Montero Granados, 2013. "Gasto público y crecimiento económico. Un estudio empírico para América Latina," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID.
  10. repec:hal:cesptp:halshs-00654363 is not listed on IDEAS

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