01821cas a2200253 a 4500 AALejournalIMF005722 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451872392 1018-5941 BD-DhAAL BD-DhAAL Bell, Gerwin. The Size of Government and U.S.-European Differences in Economic Performance / Gerwin Bell, Norikazu Tawara. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (51 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Tawara, Norikazu. IMF Working Papers; Working Paper ; No. 2009/092 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/092/001.2009.issue-092-en.xml IMF e-Library