Hessami, Zohal (2010): The Size and Composition of Government Spending in Europe and Its Impact on Well-Being.
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This paper analyses whether large governments in Europe reflect efficient responses to a changing social and economic environment (‘welfare economic view’) as opposed to wasteful spending (‘public choice view’). To this end, the effect of government size on subjective well-being is estimated in a micro dataset covering twelve EU countries from 1990 to 2000. The estimations provide evidence for (i) an inversely U-shaped relationship between public sector size and well-being. (ii) The effect of government size on well-being depends on levels of corruption and decentralization as well as people’s ideological preferences and their position in the income distribution. Finally, (iii) higher levels of well-being could have been achieved by spending more on education and less on social protection.
|Item Type:||MPRA Paper|
|Original Title:||The Size and Composition of Government Spending in Europe and Its Impact on Well-Being|
|Keywords:||Life satisfaction, well-being, public spending, government size|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H50 - General
H - Public Economics > H4 - Publicly Provided Goods > H40 - General
H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I31 - General Welfare
|Depositing User:||Zohal Hessami|
|Date Deposited:||07. Mar 2010 21:03|
|Last Modified:||15. Feb 2013 21:27|
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