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Productividad y tamaño óptimo de gobierno: El caso de los gobiernos estatales en México

Author

Listed:
  • Jesús David Montes de Oca Chaparro

    (Secretaría de Administración Tributaria.)

Abstract

This paper estimates the optimal government size for the state governments in Mexico, investigating the role of public services in the production process. It is assumed that government services are optimally provided when their marginal product equals unity (the "Barro rule"). The empirical results suggest (1) government services are significantly productive; (2) they are overprovided in all state governments in Mexico; (3) the optimal government size for the average state of the country is 3.1 % (± 2.3 %), whereas for the average state of the north and south is 8.3 % and 2.5 %, respectively; finally it was found a negative relation between the government size and the productivity of the southern governments, whereas in the others states there was no evidence to approve the above mentioned relation.

Suggested Citation

  • Jesús David Montes de Oca Chaparro, 2008. "Productividad y tamaño óptimo de gobierno: El caso de los gobiernos estatales en México," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 111-130, November.
    • Handle: RePEc:ere:journl:v:xxvii:y:2008:i:2:p:111-130
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    File URL: http://www.economia.uanl.mx/revistaensayos/xxvii/2/Productividad-y-tamano-optimo-de-gobierno.pdf
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    More about this item

    Keywords

    optimal government size; government expenditure productivity; Intergovernmental Relations;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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