Research Article
Year 2016,
Volume: 8 Issue: 2, 210 - 230, 01.12.2016
Abstract
References
- Abromowitz, M. and Vera F. Eliasberg. 1957. The Growth of Public Employment in Great Britain. Princeton University Press. Afonso, António and João Tovar Jalles. 2011. “Economic Performance and Government Size”. European Central Bank Working Paper Series. No: 1399/November. Akerlof, George A. 1970. “The Market for "Lemons": Quality Uncertainty and the Market Mechanism”. The Quarterly Journal of Economics. Vol. 84, No. 3. (Aug.). pp. 488-500. Akerlof, George A. 1970. “The Market for ‘Lemons’: Quality, Uncertainty and the Market Mechanism”. Quarterly Journal of Economics. No. 84. Alesina, Alberto and Roberto Perotti. 1996. “Fiscal Discipline and the Budget Process”. The American Economic Review. Vol. 86. No. 2. (Papers Proceedings of the Hundreth and Eighth Annual Meeting of the American Economic Association. San Francisco. CA. Jan. 57. 1996). Alesina, Alberto. et al. 1997. Political Cycles and the Macroeconomy. MIT Press. Barro, Robert J. 1990. “Government Spending in a Simple Model of Endogenous Growth”. Journal of Political Economy. 98 (5). 103–125. Barro, Robert, J. 1973. “The Control of Politicians”. Public Choice. No. 14. Spring. Baumol, William. 1967. “Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis”. American Economic Review. 57, 415-265. Bergh, Andreas and Magnus Henrekson. 2011. Government Size and Growth: A Survey and Interpretation of the Evidence. IFN Working Paper. Research Institute of Industrial Economics . No. 858. 2011. Available at: http://ssrn.com/abstract=1734206 (accessed 3/27/2016). Borcherding, Thomas E. 1977a. “One Hundred Years of Public Expenditures, 1902-1970”. in: Budgets and Bureaucrats: The Sources of Government Growth. (T. E. Borcherding ed.). Borcherding, Thomas E. 1977b. “The Sources of Growth of Public Expenditures in the United States, 1902-1970”. in: Budgets and Bureaucrats: The Sources of Government Growth. (T. E. Borcherding ed.). Borcherding, Thomas E. 1985. “The Causes of Government Expenditure Growth: A Survey of the U.S. Evidence”. Journal of Public Economics. 28. 359-382. Buchanan, James M. and, Richard E. Wagner. 1977. Democracy in Deficit: The Political Legacy of Lord Keynes. New York: Academic Press. Coleman, James S. 1966. “The Possibility of a Social Welfare Function”. American Economic Review. Dec. Crain, W. Mark. 1977. “On the Structure and Stability of Political Markets”. Journal of Political Economy. Vol. 85. No. 4. Aug. Cukierman, A. 1992. Central Bank Strategy, Credibility and Indepence. MIT Press. Cambridge. Demir, Ibrahim. 2006. “Bir Devlet Basarisizligi Cesidi olarak Temsili Demokrasilerde Etkinsizlik.” in: En Az Devlet En Iyi Devlet”. Editor: Coskun Can Aktan. Cizgi Kitabevi. Konya. Demir, Ibrahim. 2016. “The firm size, farm size, and transaction costs: the case of hazelnut farms in Turkey”. Agricultural Economics. Volume 47. Issue 1. January. Pp. 81–90. Denzau, Arthur T. and Michael C. Munger. 1986. “Legislators and Interest Groups: How Unorganized Interests Get Represented”. American Political Science Review. Vol. 80. No. 1. Mar. Downs, Anthony. 1957. An Economic Theory of Democracy. Harper and Row. New York. Faith, Roger L., et al. 1982. “Antitrust Pork Barrel”. Journal of Law and Economics. Vol. 25. No. 2. Oct. Friedman, M. and Rose Friedman. 1980. Free to Choose. Harcourt. Horn, Murray J. 1995. The Political Economy of Public Administration: Institutional Choice in the Public Sector. Cambridge University Press. Johansen, S. 1988. “Statistical analysis of cointegration vectors”. Journal of Economic Dynamics and Control. Volume 12, Issues 2–3, June–September. Pages 231-254. Johansen, S. 1995. Likelihood-Based Inference in Cointegrated Vector Autoregressive Models. Oxford: Oxford University Press. Kalecki, M. 1943. “Political Aspects of Full Employment”. The Political Quarterly. 14: 322–330. doi:10.1111/j.1467-923X.1943.tb01016.xNew York. Kilian, L. and H. Lütkepohl. (forthcoming). Structural Vector Autoregressive Analysis. Cambridge University Press, Cambridge. Klein, et al.1978. “Vertical Integration, Appropriable Rents, and the Competitive Contracting Process”. Journal of Law and Economics. Oct. Kustepeli, Yesim. 2005. “The Relationship between Government Size and Economic Growth: Evidence from Panel Data”. Discussion Series Papers. No 05/06. December. Dokuz Eylul University Department of Economics. Landes, William M. and Richard A. Posner. 1975. “The Independent Judiciary in an Interest-Group Perspective”. Journal of Law and Economics. Vol. 18. No. 3. December. Lindahl, Erik. (1919) 1958. “Just Taxation: A Positive Solution”. Translated by Elizabeth Henderson. in: Classics in the Theory of Public Finance. (edt. by Richard A. Musgrave-Alan T. Peacock) Mc Millan, London, New York. Lindbeck, Assar. 1975. “Business cycles, politics, and international economic dependence”. Skandinaviska Enskilden Bank Quarterly Review. 2, 53–68. Lindbeck, Assar. 1976. “Stabilization Policy in Open Economies with Endogenous Politicians”. The American Economic Review. Vol. 66, No. 2. Papers and Proceedings of the Eighty-eighth Annual Meeting of the American Economic Association (May, 1976), pp. 1-19. Lott, John R. Jr. 1989. “Political Cheating”. Public Choice. Feb. Lott, John R. Jr. 1990. “Attendance Rates, Political Shirking, and the Post-Elective Employment”. Economic Inquiry. Vol XXVII. Jan. Lowi, T. 1964. “American Business and Public Policy: Case Studies and Political Theory”. World Politics 16 (3). Mcchesney, Fred S. 1987. “Rent Extraction and Rent Creation in the Economic Theory of Regulation”. Journal of Legal Studies. Vol. XVI. Jan. Musgrave, Richard A. and Musgrave Peggy B. 1989. Public Finance in Theory and Practice. McGraw Hill. New York. Meltzer, Alan H. and Scott F. Richards. 1981. A rational theory of the size of government. Journal of Political Economy. 89 (5): 914-927. Niskanen, William. 1971. Bureaucracy and Representative Government, Chicago: Aldine-Atherton. Nordhaus, William D. 1975. "The Political Business Cycle," Review of Economic Studies, Vol. 42 (2) pp. 169-90. Nordhaus, William D. 1989. “Alternative Approaches to the Political Business Cycle”. Brookings Papers on Economic Activity. Vol. 1989. No. 7. 1-68. North, Douglass C. 1990. Institutions, Institutional Change and Economic Performance. Cambridge University Press. Cambridge. Olson, Mancur. [1971 (1965)]. The Logic of Collective Action: Public Goods and the Theory of Groups (Revised ed.). Harvard University Press Orzechowski, W. 1977. “Economic Models of Bureaucracy: Survey, Extensions, and Evidence.” In Borcherding, T.E., ed. Budget and Bureaucrats: The Sources of Government Growth. Durham, NC: Duke University Press. Ostrom, Elinor. 1990). Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge, UK: Cambridge University Press. Parker, Glenn R. and Stephen Powers. 2000. “Searching for Symptoms of Shirking in Political Institutions: Congressional Foreign Travel”. Presentation Text for Annual Meeting of the Public Choice Society. Charleston. South Carolina. March. Peacock, Alan T. and Jack Wiseman. 1961. The growth of Public Expenditure in the United Kingdom. A Study by the National Bureau of Economic Research. National Bureau of Economic Research. Number 72. General Series. Princeton University Press. Peltzman, Sam.1980. “The Growth of Government”. Journal of Law and Economics. Vol. 23, No. 2 (Oct., 1980), pp. 209-287. Rawls, John. 1971. A Theory of Justice. The Belknap Press of Harvard University Press. Cambridge. Mass. Stigler, George J. 1970. “Director's Law of Public Income Redistribution”. The Journal of Law & Economics. Vol. 13, No. 1 (Apr.). pp. 1-10. Stigler, George J. 1971. “The Theory of Economic Regulation”. The Bell Journall of Economics and Management Science. Vol. 2. No. 1. (Spring). Stigler, George J. 1972. “Economic Competition and Political Competition”. Public Choice. No. 13. Fall. Tullock, G. 1967. The welfare cost of tariffs, monopolies, and theft. Western Economic Journal 5, 224–232. Reprinted in R.D. Congleton, A.L. Hillman & K.A. Konrad (Eds.) (2008), Forty years of research on rent seeking 1—The theory of rent seeking (pp. 45–53). Heidelberg: Springer. Tullock, G. 1980. Efficient rent seeking. In J. M. Buchanan, R. D. Tollison, & G. Tullock (Eds.), Towards a theory of the rent-seeking society (pp. 97–112). College Station, TX: Texas A&M Press. Reprinted in R.D. Congleton, A.L. Hillman & K.A. Konrad Eds.) (2008), Forty years of research on rent seeking 1—The theory of rent seeking (pp. 105–120). Heidelberg: Springer. Turan, İlter. 1986. Siyasal Sistem ve Siyasal Davranış. Der Yayınları. İstanbul. Weingast, Barry R. and Mark J. Moran. 1983. “Bureaucratic Discretion or Congressional Control? Regulatory Policymaking by the Federal Trade Commission”. Journal of Political Economy. Vol. 91. No. 51. Weingast, Barry R., et al. 1981. “The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics”. Journal of Political Economy. Vol. 89. No. 41. Feb-Aug. Williamson, Oliver E. 1981. "The Economics of Organization: The Transaction Cost Approach". The American Journal of Sociology. 87 (3): 548–577.
Year 2016,
Volume: 8 Issue: 2, 210 - 230, 01.12.2016
Abstract
This study analyzes the relationship between the size of government sector and economic performance in connection with government failure. The study connects the size of government and economic growth to inefficiencies on the demand-side and supply-side of collective decision mechanism. It also empirically analyzes the relationship between the size of government and economic growth for the period 1972-2015. Through an error correction estimation that utilized global level data from the World Bank, the study found that the share of per capita government expenditure in per capita Gross Domestic Product (GDP) and per capita GDP growth had a long-term equilibrium relationship and size of government impacted per capita GDP growth negatively in the long-run.
References
- Abromowitz, M. and Vera F. Eliasberg. 1957. The Growth of Public Employment in Great Britain. Princeton University Press. Afonso, António and João Tovar Jalles. 2011. “Economic Performance and Government Size”. European Central Bank Working Paper Series. No: 1399/November. Akerlof, George A. 1970. “The Market for "Lemons": Quality Uncertainty and the Market Mechanism”. The Quarterly Journal of Economics. Vol. 84, No. 3. (Aug.). pp. 488-500. Akerlof, George A. 1970. “The Market for ‘Lemons’: Quality, Uncertainty and the Market Mechanism”. Quarterly Journal of Economics. No. 84. Alesina, Alberto and Roberto Perotti. 1996. “Fiscal Discipline and the Budget Process”. The American Economic Review. Vol. 86. No. 2. (Papers Proceedings of the Hundreth and Eighth Annual Meeting of the American Economic Association. San Francisco. CA. Jan. 57. 1996). Alesina, Alberto. et al. 1997. Political Cycles and the Macroeconomy. MIT Press. Barro, Robert J. 1990. “Government Spending in a Simple Model of Endogenous Growth”. Journal of Political Economy. 98 (5). 103–125. Barro, Robert, J. 1973. “The Control of Politicians”. Public Choice. No. 14. Spring. Baumol, William. 1967. “Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis”. American Economic Review. 57, 415-265. Bergh, Andreas and Magnus Henrekson. 2011. Government Size and Growth: A Survey and Interpretation of the Evidence. IFN Working Paper. Research Institute of Industrial Economics . No. 858. 2011. Available at: http://ssrn.com/abstract=1734206 (accessed 3/27/2016). Borcherding, Thomas E. 1977a. “One Hundred Years of Public Expenditures, 1902-1970”. in: Budgets and Bureaucrats: The Sources of Government Growth. (T. E. Borcherding ed.). Borcherding, Thomas E. 1977b. “The Sources of Growth of Public Expenditures in the United States, 1902-1970”. in: Budgets and Bureaucrats: The Sources of Government Growth. (T. E. Borcherding ed.). Borcherding, Thomas E. 1985. “The Causes of Government Expenditure Growth: A Survey of the U.S. Evidence”. Journal of Public Economics. 28. 359-382. Buchanan, James M. and, Richard E. Wagner. 1977. Democracy in Deficit: The Political Legacy of Lord Keynes. New York: Academic Press. Coleman, James S. 1966. “The Possibility of a Social Welfare Function”. American Economic Review. Dec. Crain, W. Mark. 1977. “On the Structure and Stability of Political Markets”. Journal of Political Economy. Vol. 85. No. 4. Aug. Cukierman, A. 1992. Central Bank Strategy, Credibility and Indepence. MIT Press. Cambridge. Demir, Ibrahim. 2006. “Bir Devlet Basarisizligi Cesidi olarak Temsili Demokrasilerde Etkinsizlik.” in: En Az Devlet En Iyi Devlet”. Editor: Coskun Can Aktan. Cizgi Kitabevi. Konya. Demir, Ibrahim. 2016. “The firm size, farm size, and transaction costs: the case of hazelnut farms in Turkey”. Agricultural Economics. Volume 47. Issue 1. January. Pp. 81–90. Denzau, Arthur T. and Michael C. Munger. 1986. “Legislators and Interest Groups: How Unorganized Interests Get Represented”. American Political Science Review. Vol. 80. No. 1. Mar. Downs, Anthony. 1957. An Economic Theory of Democracy. Harper and Row. New York. Faith, Roger L., et al. 1982. “Antitrust Pork Barrel”. Journal of Law and Economics. Vol. 25. No. 2. Oct. Friedman, M. and Rose Friedman. 1980. Free to Choose. Harcourt. Horn, Murray J. 1995. The Political Economy of Public Administration: Institutional Choice in the Public Sector. Cambridge University Press. Johansen, S. 1988. “Statistical analysis of cointegration vectors”. Journal of Economic Dynamics and Control. Volume 12, Issues 2–3, June–September. Pages 231-254. Johansen, S. 1995. Likelihood-Based Inference in Cointegrated Vector Autoregressive Models. Oxford: Oxford University Press. Kalecki, M. 1943. “Political Aspects of Full Employment”. The Political Quarterly. 14: 322–330. doi:10.1111/j.1467-923X.1943.tb01016.xNew York. Kilian, L. and H. Lütkepohl. (forthcoming). Structural Vector Autoregressive Analysis. Cambridge University Press, Cambridge. Klein, et al.1978. “Vertical Integration, Appropriable Rents, and the Competitive Contracting Process”. Journal of Law and Economics. Oct. Kustepeli, Yesim. 2005. “The Relationship between Government Size and Economic Growth: Evidence from Panel Data”. Discussion Series Papers. No 05/06. December. Dokuz Eylul University Department of Economics. Landes, William M. and Richard A. Posner. 1975. “The Independent Judiciary in an Interest-Group Perspective”. Journal of Law and Economics. Vol. 18. No. 3. December. Lindahl, Erik. (1919) 1958. “Just Taxation: A Positive Solution”. Translated by Elizabeth Henderson. in: Classics in the Theory of Public Finance. (edt. by Richard A. Musgrave-Alan T. Peacock) Mc Millan, London, New York. Lindbeck, Assar. 1975. “Business cycles, politics, and international economic dependence”. Skandinaviska Enskilden Bank Quarterly Review. 2, 53–68. Lindbeck, Assar. 1976. “Stabilization Policy in Open Economies with Endogenous Politicians”. The American Economic Review. Vol. 66, No. 2. Papers and Proceedings of the Eighty-eighth Annual Meeting of the American Economic Association (May, 1976), pp. 1-19. Lott, John R. Jr. 1989. “Political Cheating”. Public Choice. Feb. Lott, John R. Jr. 1990. “Attendance Rates, Political Shirking, and the Post-Elective Employment”. Economic Inquiry. Vol XXVII. Jan. Lowi, T. 1964. “American Business and Public Policy: Case Studies and Political Theory”. World Politics 16 (3). Mcchesney, Fred S. 1987. “Rent Extraction and Rent Creation in the Economic Theory of Regulation”. Journal of Legal Studies. Vol. XVI. Jan. Musgrave, Richard A. and Musgrave Peggy B. 1989. Public Finance in Theory and Practice. McGraw Hill. New York. Meltzer, Alan H. and Scott F. Richards. 1981. A rational theory of the size of government. Journal of Political Economy. 89 (5): 914-927. Niskanen, William. 1971. Bureaucracy and Representative Government, Chicago: Aldine-Atherton. Nordhaus, William D. 1975. "The Political Business Cycle," Review of Economic Studies, Vol. 42 (2) pp. 169-90. Nordhaus, William D. 1989. “Alternative Approaches to the Political Business Cycle”. Brookings Papers on Economic Activity. Vol. 1989. No. 7. 1-68. North, Douglass C. 1990. Institutions, Institutional Change and Economic Performance. Cambridge University Press. Cambridge. Olson, Mancur. [1971 (1965)]. The Logic of Collective Action: Public Goods and the Theory of Groups (Revised ed.). Harvard University Press Orzechowski, W. 1977. “Economic Models of Bureaucracy: Survey, Extensions, and Evidence.” In Borcherding, T.E., ed. Budget and Bureaucrats: The Sources of Government Growth. Durham, NC: Duke University Press. Ostrom, Elinor. 1990). Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge, UK: Cambridge University Press. Parker, Glenn R. and Stephen Powers. 2000. “Searching for Symptoms of Shirking in Political Institutions: Congressional Foreign Travel”. Presentation Text for Annual Meeting of the Public Choice Society. Charleston. South Carolina. March. Peacock, Alan T. and Jack Wiseman. 1961. The growth of Public Expenditure in the United Kingdom. A Study by the National Bureau of Economic Research. National Bureau of Economic Research. Number 72. General Series. Princeton University Press. Peltzman, Sam.1980. “The Growth of Government”. Journal of Law and Economics. Vol. 23, No. 2 (Oct., 1980), pp. 209-287. Rawls, John. 1971. A Theory of Justice. The Belknap Press of Harvard University Press. Cambridge. Mass. Stigler, George J. 1970. “Director's Law of Public Income Redistribution”. The Journal of Law & Economics. Vol. 13, No. 1 (Apr.). pp. 1-10. Stigler, George J. 1971. “The Theory of Economic Regulation”. The Bell Journall of Economics and Management Science. Vol. 2. No. 1. (Spring). Stigler, George J. 1972. “Economic Competition and Political Competition”. Public Choice. No. 13. Fall. Tullock, G. 1967. The welfare cost of tariffs, monopolies, and theft. Western Economic Journal 5, 224–232. Reprinted in R.D. Congleton, A.L. Hillman & K.A. Konrad (Eds.) (2008), Forty years of research on rent seeking 1—The theory of rent seeking (pp. 45–53). Heidelberg: Springer. Tullock, G. 1980. Efficient rent seeking. In J. M. Buchanan, R. D. Tollison, & G. Tullock (Eds.), Towards a theory of the rent-seeking society (pp. 97–112). College Station, TX: Texas A&M Press. Reprinted in R.D. Congleton, A.L. Hillman & K.A. Konrad Eds.) (2008), Forty years of research on rent seeking 1—The theory of rent seeking (pp. 105–120). Heidelberg: Springer. Turan, İlter. 1986. Siyasal Sistem ve Siyasal Davranış. Der Yayınları. İstanbul. Weingast, Barry R. and Mark J. Moran. 1983. “Bureaucratic Discretion or Congressional Control? Regulatory Policymaking by the Federal Trade Commission”. Journal of Political Economy. Vol. 91. No. 51. Weingast, Barry R., et al. 1981. “The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics”. Journal of Political Economy. Vol. 89. No. 41. Feb-Aug. Williamson, Oliver E. 1981. "The Economics of Organization: The Transaction Cost Approach". The American Journal of Sociology. 87 (3): 548–577.
There are 1 citations in total.
Details
| Primary Language | English |
|---|---|
| Subjects | Economics |
| Journal Section | Articles |
| Authors | |
| Publication Date | December 1, 2016 |
| Published in Issue | Year 2016 Volume: 8 Issue: 2 |