The optimal size of government in Australia
| Autor: | Anthony John Makin, Shyama Ratnasiri, Julian Pearce |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Government spending
Economics and Econometrics Government 05 social sciences Economics Econometrics and Finance (miscellaneous) Measures of national income and output 0211 other engineering and technologies 02 engineering and technology 0502 economics and business Development economics Economics 021108 energy 050207 economics Rate of growth |
| Zdroj: | Economic Analysis and Policy. 62:27-36 |
| ISSN: | 0313-5926 |
| DOI: | 10.1016/j.eap.2018.12.001 |
| Popis: | In the extensive literature on the role of government in the economy scant attention has been paid to the influence of the relative size of government on an economy’s rate of growth. This paper canvasses perspectives on why the size of government has grown, how this affects the wider economy, and why a trade-off exists between increased government size and economic growth beyond some optimal level, as conveyed by the so-called BARS curve. The paper next examines in-depth trends in government spending in Australia which has grown to a historically high level of 37 per cent of national income post GFC before econometrically estimating the optimal size of government on Australia’s BARS curve using the ARMAX approach. The results suggest the share of government spending in Australia consistent with maximising economic growth is 31 per cent of national income, significantly below the current level. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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