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This paper analyses the effects in terms of size and volatility of government revenue and spending on growth in OECD and EU countries. The results of the paper suggest that both variables are detrimental to growth. In particular, looking more closely at the effect of each component of government...
Persistent link: https://www.econbiz.de/10011604895
Does economic freedom increase the utility of an average citizen? Public choice theory in particular has emphasized the …
Persistent link: https://www.econbiz.de/10011422241
The literature on the relationship between the size of government and economic growth is full of seemingly contradictory findings. This conflict is largely explained by variations in definitions and the countries studied. An alternative approach - of limiting the focus to studies of the...
Persistent link: https://www.econbiz.de/10010320200
theory is not corroborated. We examine the robustness of these findings, and show that Colombier's results differ from those … findings, corroborating endogenous growth theory. Adding further control variables illustrates the robustness of the negative …
Persistent link: https://www.econbiz.de/10010320313
This paper re-examines the relationship between government size and output volatility from two perspectives. First, we use a wider international data set of 91 countries over the period 1980-1999 and thus not only the OECD data that have thus far been utilized. Second, we also allow for time...
Persistent link: https://www.econbiz.de/10010285180
We argue that the literature on government size suffers from neglecting the role of governance both as a driving and a limiting factor for government spending. Cross-country evidence for a sample of 126 developed and developing countries averaging data for the period 2003-07 reveals that better...
Persistent link: https://www.econbiz.de/10010285722
It is not always easy to see a common thread in Tullock's work: he is almost too fertile and throws off so many ideas in all directions that the connecting links between them threaten to disappear from view. Any simple summary of his 'system', therefore, must wait on some future effort of his...
Persistent link: https://www.econbiz.de/10010305750
After decades of government growth, Western countries have witnessed major policy reversals. Prominent examples include the far-reaching policy reversals implemented by Thatcher, Reagan, and Douglas. This paper offers an explanation for these policy reversals. Our key argument rests on the...
Persistent link: https://www.econbiz.de/10010324722
In this paper Tabellini's and Alesina's (1990) median voter model for the explanation of budget deficits is modified by endogenizing the private sector. Debt finance is supplemented by taxing a private consumption which serves as an additional source of revenue for funding the public sector. The...
Persistent link: https://www.econbiz.de/10010270404
This paper analyzes government commitments to ongoing spending programs that require future outlays. Spending commitments are important for understanding partisan politics because they constrain future governments. In a model with one government good, a 'stubborn liberal' policy maker can use...
Persistent link: https://www.econbiz.de/10010274871