The Size of Government and U.S.-European Differences in Economic Performance /

An influential strand of recent research has claimed that large governments in European countries explain their weaker long-term economic performance compared to the U.S. On the other hand, despite these alleged costs, large governments have been popular with electorates. This paper seeks to shed li...

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Hlavní autor: Bell, Gerwin
Další autoři: Tawara, Norikazu
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2009.
Edice:IMF Working Papers; Working Paper ; No. 2009/092
On-line přístup:Full text available on IMF
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Shrnutí:An influential strand of recent research has claimed that large governments in European countries explain their weaker long-term economic performance compared to the U.S. On the other hand, despite these alleged costs, large governments have been popular with electorates. This paper seeks to shed light on this apparent inconsistency; it confirms an adverse effect of taxes on labor supply, but also finds evidence of efficiency-increasing government intervention. However, and especially in the core "Rhineland-model" European countries, actual government policies often depart from such efficient interventions, pointing to the possibility that voters prefer redistribution even at the cost of allocational efficiency.
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Fyzický popis:1 online resource (51 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students