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Government Size, Trade Openness, and Output Volatility : A Case of Fully Integrated Economics

Fujii, Eiji - 2015

Government is often considered the safe sector of an open economy that provides households with insurance against external risk exposure. Among highly integrated economies, however, households should be able to exploit common financial markets to insure themselves. In this paper we examine the...

Persistent link: https://www.econbiz.de/10013011795

The Size and Scope of Government in the US States : Does Party Ideology Matter?

Bjørnskov, Christian; Potrafke, Niklas - 2021

We investigate empirically how party ideology influences size and scope of government as measured by the size of government, tax structure and labor market regulation. Our dataset comprises 49 US states over the 1993-2009 period. We employ the new data on the ideological mapping of US...

Persistent link: https://www.econbiz.de/10013315778

Social Ideology and Taxes in a Differentiated Candidates Framework

Krasa, Stefan; Polborn, Mattias - 2021

How does ideological polarization on non-economic matters influence the size of government? We analyze this question using a differentiated candidates framework: Two office-motivated candidates differ in their (fixed) ideological position and their production function for public goods, and...

Persistent link: https://www.econbiz.de/10013315995

Smaller Public Sectors in the Euro Area : Aggregate and Distributional Implications

Economides, George - 2012

In this paper, we study the aggregate and distributional implications of a smaller public sector in the euro area. By a smaller public sector, we mean a reduction in public debt and/or cuts in public spending, when such changes in fiscal policy are accommodated by adjustment in various taxes....

Persistent link: https://www.econbiz.de/10013098961

Does Direct Democracy Reduce the Size of Government? New Evidence from Historical Data, 1890-2000

Funk, Patricia - 2009

Using a new dataset of Swiss cantons from 1890 to 2000, we estimate the causal effect of direct democracy on government spending. Our analysis is novel in two ways: first, we use fixed effects to control for unobserved heterogeneity; second, we combine a new instrument with fixed effects to...

Persistent link: https://www.econbiz.de/10013158324

Political Competition and Convergence to Fundamentals : With Application to the Political Business Cycle and the Size of Government

Ferris, J. Stephen - 2006

We address the problem of how to investigate whether economics, or politics, or both, matter in the explanation of public policy. The problem is first posed in a particular context by uncovering a political business cycle (using Canadian data for 130 years) and by taking up the challenge to make...

Persistent link: https://www.econbiz.de/10012781541

New Evidence on Fiscal Decentralization and the Size of Government

Fiva, Jon H. - 2006

This paper adds to the literature by utilizing improved data on tax revenue decentralization to re-examine the relationship between fiscal decentralization and the size of government. An econometric analysis using panel data from 18 OECD countries shows that fiscal decentralization matters for...

Persistent link: https://www.econbiz.de/10012783397

Fiscal Rules and Government Size in the European Union

Mierau, Jochen O.; Andreu, Eduard Suari - 2021

This paper studies the impact of national fiscal rules on government size as measured by the ratio of government expenditures to gross domestic product. We develop a model of the budgetary process and show that a common pool problem may arise which can be mitigated through fiscal rules. We test...

Persistent link: https://www.econbiz.de/10013315620

Factor Income Distribution and Endogenous Economic Growth - When Piketty Meets Romer

Irmen, Andreas - 2017

We scrutinize Thomas Piketty's (2014) theory concerning the relationship between an economy's long-run growth rate, its … of Piketty's Second Fundamental Law of Capitalism does not hold. In line with Piketty's theory a smaller long-run growth …, both the economy's savings rate and its growth rate are endogenous variables whereas in Piketty's theory they are both …

Persistent link: https://www.econbiz.de/10012965706

Migration, Congestion and Growth

Azarnert, Leonid V. - 2017

This article analyzes the effect of migration from a less advanced economy to a more advanced economy on economic growth. The analysis is performed in a two-country growth model with endogenous fertility, in which congestion diseconomies are incorporated. The model shows that out-migration...

Persistent link: https://www.econbiz.de/10012953488