THE OPTIMAL GOVERNMENT SIZE IN TRANSITION COUNTRIES

GÜNALP B., Dincer O.

PROGRESS IN ECONOMICS RESEARCH, VOL 15, cilt.15, ss.153-169, 2010 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 15
  • Basım Tarihi: 2010
  • Dergi Adı: PROGRESS IN ECONOMICS RESEARCH, VOL 15
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI)
  • Sayfa Sayıları: ss.153-169
  • Hacettepe Üniversitesi Adresli: Hayır

Özet

We estimate the productivity of government services and the optimal government size for a set of transition countries by employing the empirical methodology developed by Karras (1996, 1997) which is based on the theoretical framework developed by Barro (1989, 1990). Using annual data from 1990 to 2001 for 20 transition countries, we find empirical evidence supporting the hypotheses that government services are productive, they are, on average, optimally provided, and the marginal productivity of government services is negatively related to government size. In different specifications, the optimal government size is estimated to range between 14.1 percent and 18.2 percent for the average transition country.