While previous research documents a negative relationship between government size and economic growth, suggesting an economic cost of big government, a given government size generally affects growth differently in different countries. As a possible explanation of this differential effect, we...

A new empirical field of research in economics shows that policies characterized by economic freedom produce economic growth. “Economic freedom” means such things as a small government, protection of private property, a well-functioning legal system, free competition and few regulations. The...

While previous research documents a negative relationship between government size and economic growth, suggesting an economic cost of big government, a given government size generally affects growth differently in different countries. As a possible explanation of this differential effect, we...