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Studying the role of political competition in the evolution of government size over long horizons

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Author Info
Ferris, J. Stephen
Park, Soo-Bin
Winer, Stanley L. ()

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Abstract

We argue for the use of cointegration and error correction analysis as a method to combine economic factors that are nonstationary with political factors that are stationary into a dynamic, empirical model of the evolution of public policy over long periods. The approach we develop is applied to disentangle the contributions of economics and politics to the evolution of public expenditure by the Government of Canada over 130 years, from the origin of the modern state to the end of the 20th century. Political competition emerges robustly as the primary political factor affecting government size in the long run as well as over shorter horizons.

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Publisher Info
Paper provided by Department of Public Policy and Public Choice - POLIS in its series P.O.L.I.S. department's Working Papers with number 111.

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Length: 49 pages
Date of creation: Jun 2008
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Handle: RePEc:uca:ucapdv:111

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Related research
Keywords: political competition conditional convergence cointegration public expenditure size of government politics versus economics

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Find related papers by JEL classification:
D7 - Microeconomics - - Analysis of Collective Decision-Making
H1 - Public Economics - - Structure and Scope of Government
H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
H5 - Public Economics - - National Government Expenditures and Related Policies

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