IDEAS home Printed from https://ideas.repec.org/a/ces/epofor/v25y2024i06p30-35.html
   My bibliography  Save this article

Lost Economic Output Due to High Bureaucratic Burden

Author

Listed:
  • Oliver Falck
  • Yuchen Mo Guo
  • Christian Pfaffl

Abstract

This study examines the overall economic costs arising from high levels of bureaucracy. We also shed light on whether and to what extent the digitalization of administrative processes can reduce the economic costs of bureaucracy The results of our international analysis show that a fundamental reduction in bureaucracy is accompanied by a 4.6-percent average increase in real GDP per capita If Germany had implemented a fundamental reduction in bureaucracy in 2015, GDP per capita would have been EUR 2,449 higher in 2022. On average for the years 2015 to 2022, this would have corresponded to an annual increase in real GDP per capita of EUR 1,766, or EUR 146 billion in total per year Our results also show that a digitalization push in public administration can increase the level of real GDP per capita by 2.7 percent while maintaining the same level of bureaucracy The positive impact of digitalization is particularly strong in countries with high levels of bureaucracy

Suggested Citation

  • Oliver Falck & Yuchen Mo Guo & Christian Pfaffl, 2024. "Lost Economic Output Due to High Bureaucratic Burden," EconPol Forum, CESifo, vol. 25(06), pages 30-35, November.
  • Handle: RePEc:ces:epofor:v:25:y:2024:i:06:p:30-35
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/econpol-forum-2024-6-falck-guo-pfaffl-eu-regulation.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:epofor:v:25:y:2024:i:06:p:30-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.