Tax Rate and Government Expenditure
This article presents a model of government behavior. A central role is allocated to the own interests of politicians and bureaucrats. The interests of social groups outside t he government organization are taken into account by the government t hrough factors such as mobility between social groups and pressure. T his leads to the formulation of a so-called complex interest function which is maximized to determine the behavior of the government. It a ppears that the numerical strengths of the social groups that are act ively involved in the production process are determinant for the tax rate and the relative level of government expenditure. Copyright 1987 by WWZ and Helbing & Lichtenhahn Verlag AG
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Volume (Year): 40 (1987)
Issue (Month): 3 ()
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