Dushko, Josheski and Darko, Lazarov and Cane, Koteski (2011): Analysis of the optimal size of the government consumption.
Download (265kB) | Preview
The aim of this paper is to investigate the size of the government in 12 OECD countries. Data are gathered from Penn Tables. Clustered robust OLS estimation techniques have been used. The functional form is quadratic is been used, to determine the point where the size of the government is optimal. Government consumption has been used as a proxy variable for government size.
|Item Type:||MPRA Paper|
|Original Title:||Analysis of the optimal size of the government consumption|
|English Title:||Analysis of the optimal size of the government consumption|
|Keywords:||Government size, Clustered robust OLS, quadratic equation, Armey curve|
|Subjects:||E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy
H - Public Economics > H0 - General
|Depositing User:||DJ Josheski|
|Date Deposited:||07 Jul 2011 08:03|
|Last Modified:||26 Apr 2016 18:51|
 Armey, D. and Armey, R. (1995). “The Freedom Revolution: The New Republican House Majority Leader Tells Why Big Government Failed, Why Freedom Works, and How We Will Rebuild America, “,Washington, D.C.; Regnery Publishing Inc.
 Barro, R. (1988). “Government Spending in a Simple Model of Endogenous Growth,” NBER Working Paper 2588
 Grossman, P. (1987). The optimal size of government, Public choice, vol.56
 Carlstrom, C. and Gokhale, J. (1991). “Government Consumption, Taxation, and Economic Activity,” Federal Reserve Bank of Cleveland Economic Review, 3rd Quarter, pp. 18-29
 Heitger, B. (2001). “The Scope of Government and Its Impact on Economic Growth in OECD Countries,” Kiel Institute of World Economics; Kiel Working Paper No. 1034
 Pevcin, P. (2004). “Does Optimal Size of Government Spending Exist?,” University of Ljubljana
 Pevcin, P. (2004). “Cross-country Differences in Government Sector Activities”, Zb. Rad. - Sveuc. u Rij„ Ekon. fak„ god. 22. Sv. 2, str. 41-59
 Rahn, R. and Fox, H. (1996). “What Is the Optimum Size of Government,” Vernon K. Krieble Foundation
 Olson, M. (1982). The rise and decline of nations: Economic growth stagflation, and social rigidities. New Haven: Yale University Press
 Scully, G. (2003). “Optimal taxation, economic growth and income inequality,” Public Choice 115: 299–312
 Scully, G. (2008). “Optimal Taxation, Economic Growth and Income Inequality in the United States,” National Center for Policy Analysis, Policy Report No. 316