Introducing and Testing a New Model to Explain the Size of Government

Introducing and Testing a New Model to Explain the Size of Government

This article explains the differences in size and growth of governments over time. We first divide the theories of government size into three theories relating to demand side, supply side and other theories. Then these theories are empirically tested by a conceptual model for 103 countries and selec...

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Bibliographic Details
Main Authors: Fereshteh Mohammadyan, Hamid Amadeh, Abbas Shakeri
Format: Article
Language:fas
Published: Allameh Tabataba'i University Press 2013-07-01
Series:Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī
Subjects:
Introducing and Testing a New Model to Explain the Size of Government Article 5
Volume 13
Issue 49 - Serial Number 2
Summer 2013
Page 117-150 XML PDF (681.4 K) Document Type: Research Paper Authors Fereshteh Mohammadyan email 1; Hamid Amadeh2; Abbas Shakeri3 1M.Sc. Student in Environmental Economics
Faculty of Economics
Allameh Tabatabaie University 2Assistant Professor
Allameh Tabatabaie University 3Professor
Allameh Tabatabaie University Abstract This article explains the differences in size and growth of governments over time. We first divide the theories of government size into three theories relating to demand side
supply side and other theories. Then these theories are empirically tested by a conceptual model for 103 countries and selected groups of countries (Muslim and socialist countries
democracies
authoritarian countries and federal countries) during the period of 1990 to 2010. The results show that among the demand side variables
per capita income
inequality and urbanization
respectively with negative
positive and positive signs
have a significant effect on the size of government. In the case of supply side variabels
indirect taxes have a significant positive effect on the size of government. Concerning other factors (factors other than the supply and demand side variables)
the three variables that are the ratio of aging population
the degree of openness of the economy and the rate of female participation in the labor market have a significant positive effect on government size. The results also show that political structure
ideological structure
Government Size; Islamic and Socialist Countries; Democratic Countries Dictatorship and the Federal Countries
Online Access:http://joer.atu.ac.ir/article_910_8ace56c2a86f8cd0108df9660ded49ff.pdf

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http://joer.atu.ac.ir/article_910_8ace56c2a86f8cd0108df9660ded49ff.pdf

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