In this paper we test a general equilibrium model of the size and growth of government developed by Dao and Esfahani (1995) using OECD cross-sectional and US time-series data. The model is based on the assumption that various socioeconomic groups try to redistribute income in their favor....

Develops a general equilibrium model of the growth of government based on the attempts of various socio-economic groups to redistribute income in their own favour. In the non-cooperative equilibrium of our model under free political competition, every group in the economy pays taxes at rates...