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The Optimal Size of Government

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Abstract

In the economic analysis of the theory of government, two views of government are evident. The Pigovian view sees government as a benevolent actor striving to correct for the inadequacies and excesses of an unrestrained marketplace. The 'Public Choice' view of government portrays government as the tool of special interest groups as likely to generate distortions as to correct them. In this paper, a model of government that incorporates both views will be developed and then empirically tested.

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  • Philip J. Grossman, 1987. "The Optimal Size of Government," Monash Economics Working Papers archive-06, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:archive-06
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    1. Riker, William H. & Brams, Steven J., 1973. "The Paradox of Vote Trading," American Political Science Review, Cambridge University Press, vol. 67(4), pages 1235-1247, December.
    2. Peltzman, Sam, 1980. "The Growth of Government," Journal of Law and Economics, University of Chicago Press, vol. 23(2), pages 209-287, October.
    3. Peltzman, Sam, 1980. "The Growth of Government," Working Papers 1, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    4. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135-135.
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