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Human development and the optimal size of government


  • Davies, Antony


Previous studies have found evidence for an optimal size of government with respect to GDP growth. In this paper, I look at the impact of the size of government consumption expenditures on social welfare as measured by the Human Development Index. Utilizing dynamic GMM estimation in a panel data framework, I find that evidence for an optimal size of government with respect to social welfare.

Suggested Citation

  • Davies, Antony, 2009. "Human development and the optimal size of government," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 326-330, March.
  • Handle: RePEc:eee:soceco:v:38:y:2009:i:2:p:326-330

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    References listed on IDEAS

    1. Heitger, Bernhard, 2001. "The Scope of Government and its Impact on Economic Growth in OECD Countries," Kiel Working Papers 1034, Kiel Institute for the World Economy (IfW).
    2. Peden, Edgar A, 1991. "Productivity in the United States and Its Relationship to Government Activity: An Analysis of 57 Years, 1929-1986," Public Choice, Springer, vol. 69(2), pages 153-173, February.
    3. Srinivasan, T N, 1994. "Human Development: A New Paradigm or Reinvention of the Wheel?," American Economic Review, American Economic Association, vol. 84(2), pages 238-243, May.
    4. Chamie, Joseph, 1994. "Population databases in development analysis," Journal of Development Economics, Elsevier, vol. 44(1), pages 131-146, June.
    5. Cavaliere, Giuseppe, 2005. "Limited Time Series With A Unit Root," Econometric Theory, Cambridge University Press, vol. 21(05), pages 907-945, October.
    6. Philip Grossman, 1988. "Government and economic growth: A non-linear relationship," Public Choice, Springer, vol. 56(2), pages 193-200, February.
    7. Srinivasan, T. N., 1994. "Data base for development analysis Data base for development analysis: An overview," Journal of Development Economics, Elsevier, vol. 44(1), pages 3-27, June.
    8. Sudhir Anand & Amartya Sen, 2000. "The Income Component of the Human Development Index," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 1(1), pages 83-106.
    9. Neumayer, Eric, 2001. "The human development index and sustainability -- a constructive proposal," Ecological Economics, Elsevier, vol. 39(1), pages 101-114, October.
    10. Sudhir Anand and Amartya Sen, 2000. "The Income Component of Human Development Index," Human Development Occasional Papers (1992-2007) HDOCPA-2000-01, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    11. Sagar, Ambuj D. & Najam, Adil, 1998. "The human development index: a critical review," Ecological Economics, Elsevier, vol. 25(3), pages 249-264, June.
    12. Behrman, Jere R. & Rosenzweig, Mark R., 1994. "Caveat emptor: Cross-country data on education and the labor force," Journal of Development Economics, Elsevier, vol. 44(1), pages 147-171, June.
    13. Abdullah Yavas, 1998. "Does too much government investment retard economic development of a country?," Journal of Economic Studies, Emerald Group Publishing, vol. 25(4), pages 296-308, September.
    14. Davies, Antony & Quinlivan, Gary, 2006. "A panel data analysis of the impact of trade on human development," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(5), pages 868-876, October.
    15. Shyamal Chowdhury & Lyn Squire, 2006. "Setting weights for aggregate indices: An application to the commitment to development index and human development index," Journal of Development Studies, Taylor & Francis Journals, vol. 42(5), pages 761-771.
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    Cited by:

    1. Bekzod ABDULLAEV & Laszlo KONYA, 2014. "Growth Maximizing Tax Rate for Uzbekistan," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 59-72.
    2. Halkos, George & Paizanos, Epameinondas, 2015. "Fiscal policy and economic performance: A review of the theoretical and empirical literature," MPRA Paper 67737, University Library of Munich, Germany.
    3. Michael, Bryane, 2015. "What Does Brunei Teach Us About Using Human Development Index Rankings as a Policy Tool?," EconStor Preprints 107401, ZBW - German National Library of Economics.
    4. P. Zhou & B. Ang & D. Zhou, 2010. "Weighting and Aggregation in Composite Indicator Construction: a Multiplicative Optimization Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 96(1), pages 169-181, March.
    5. Susana Martins & Francisco Veiga, 2014. "Government size, composition of public expenditure, and economic development," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(4), pages 578-597, August.
    6. Alina Cristina Nuta & Florian Marcel Nuta & Viorica Chirila & Angela Roman & Andy Corneliu Pusca, 2015. "Testing the Relationship between Public Expenditure and Economic Growth in Romania," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(4), pages 86-102, August.
    7. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    8. Magazzino, Cosimo & Forte, Francesco, 2010. "Optimal size of government and economic growth in EU-27," MPRA Paper 26669, University Library of Munich, Germany.
    9. Vítor Castro & Rodrigo Martins, 2016. "The Electoral Dynamics of Human Development," NIPE Working Papers 6/2016, NIPE - Universidade do Minho.
    10. Hajamini, Mehdi & Falahi, Mohammad Ali, 2012. "Economic growth and the optimum size of government in 15 European countries: A threshold panel approach," MPRA Paper 39616, University Library of Munich, Germany.
    11. Hamidreza Hajibabaei & Alimohammad Ahmadi, 2014. "Government Size and Human Development: Quadratic Regression Approach," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(4), pages 160-166, April.
    12. repec:eco:journ1:2017-05-51 is not listed on IDEAS
    13. Adu Frank & Ohene-Manu Joseph & Ishmael Ackah, 2014. "Government Expenditures and Economic Growth dynamics in Ghana," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(5), pages 180-190, May.


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