efficiency scores derived from stochastic frontier analysis. To correct for this heterogeneity in coefficients, I propose a …. This estimation has better goodness of fit, reduced variance of all coefficients, and higher efficiency scores for nearly …

efficiency. Specifically, while a larger size of government is bad for incentives when one ignores efficiency, the results change …, larger public sectors are bad for incentives. By contrast, when efficiency exceeds size, larger public sectors are not bad … government share in GDP; and as a measure of government efficiency, we construct an index by following the methodology of Afonso …