Thrift culture and the size of government
Author(s)
Hien, Thuc Pham
Carmignani, Fabrizio
Kler, Parvinder
Year published
2018
Metadata
Show full item recordAbstract
We consider the role of culture in determining the size of government. To that purpose, we develop three theoretical hypotheses on the relationship between “thrift” (our proxy of culture) and government consumption. We then test these hypotheses using panel data for 62 countries. Our main finding is that government consumption is higher in thriftier countries. The positive effect of thrift on government consumption weakens in more corrupt or more democratic societies.We consider the role of culture in determining the size of government. To that purpose, we develop three theoretical hypotheses on the relationship between “thrift” (our proxy of culture) and government consumption. We then test these hypotheses using panel data for 62 countries. Our main finding is that government consumption is higher in thriftier countries. The positive effect of thrift on government consumption weakens in more corrupt or more democratic societies.
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Journal Title
Economic Modelling
Note
This publication has been entered into Griffith Research Online as an Advanced Online Version.
Subject
Applied Economics not elsewhere classified
Applied Economics
Econometrics
Banking, Finance and Investment