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The economic analysis of bureaucracy and government growth

Author

Listed:
  • Mihai UNGUREANU

    (National School of Political Studies and Public Administration Studies)

  • Diana IANCU

    (National School of Political Studies and Public Administration Studies)

Abstract

In this paper we analyze the problem of government size and growth and its relation with the size of public bureaucracies. The paper is organized as following: first, we present some factual data which confirm government size and growth for the western democratic world; second, we analyze the theories which identify the causes of this phenomenon. In this line we use Halcombe’s (2005) taxonomy and shortly discuss, at first, the rational choice and path dependency theories of government growth. Further, we focus on budget maximization theories. This class of theories explains government growth and size by state’s internal factors, bureaucracy (in the case of Niskanen’s models) and bureaucracy and politicians (in the case of the Leviathan model). We conclude the paper by presenting the Armey curve and the hypothesis of state’s underdevelopment as applied to the problem of the Romanian public administration.

Suggested Citation

  • Mihai UNGUREANU & Diana IANCU, 2012. "The economic analysis of bureaucracy and government growth," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(11(576)), pages 59-74, November.
  • Handle: RePEc:agr:journl:v:11(576):y:2012:i:11(576):p:59-74
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    References listed on IDEAS

    as
    1. Edward Glaeser & Giacomo Ponzetto & Andrei Shleifer, 2007. "Why does democracy need education?," Journal of Economic Growth, Springer, vol. 12(2), pages 77-99, June.
    2. Dolton, Peter J. & Silles, Mary A., 2008. "The effects of over-education on earnings in the graduate labour market," Economics of Education Review, Elsevier, vol. 27(2), pages 125-139, April.
    3. Kevin Milligan & Enrico Moretti & Philip Oreopoulos, 2003. "Does Education Improve Citizenship? Evidence from the U.S. and the U.K," NBER Working Papers 9584, National Bureau of Economic Research, Inc.
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