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 InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/229414.
Date of creation: 2009
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Other versions of 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.
- H10 - Public Economics - - Structure and Scope of Government - - - General
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
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