Sizing the government

Kristof De Witte*, Wim Moesen

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

33 Citations (Web of Science)

Abstract

Is there such a thing as an optimal government size? we investigate the so-called armey curve, which claims an inverted u-shaped relationship between government size and economic performance, using non-parametric data envelopment analysis (dea). The dea scores are linked to control variables, such as initial per capita income, openness, population density, urbanization, country size and family size. For 23 oecd-countries we estimate the country specific efficiency scores, which reveal the extent to which a country uses excess public resources to achieve the observed growth rate of gdp.
Original languageEnglish
Pages (from-to)39-55
JournalPublic Choice
Volume145
Issue number1-2
DOIs
Publication statusPublished - Oct 2010

Keywords

  • Data envelopment analysis
  • Government size
  • Public sector performance
  • Armey-curve

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