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dc.contributor.authorMakin, Anthony J
dc.contributor.authorPearce, Julian
dc.contributor.authorRatnasiri, Shyama
dc.date.accessioned2019-07-11T03:01:15Z
dc.date.available2019-07-11T03:01:15Z
dc.date.issued2019
dc.identifier.issn0313-5926
dc.identifier.doi10.1016/j.eap.2018.12.001
dc.identifier.urihttp://hdl.handle.net/10072/383338
dc.description.abstractIn 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.
dc.description.peerreviewedYes
dc.languageEnglish
dc.language.isoeng
dc.publisherElsevier
dc.publisherElsevier
dc.relation.ispartofpagefrom27
dc.relation.ispartofpageto36
dc.relation.ispartofjournalEconomic Analysis and Policy
dc.relation.ispartofvolume62
dc.subject.fieldofresearchMacroeconomics (incl. monetary and fiscal theory)
dc.subject.fieldofresearchApplied economics
dc.subject.fieldofresearchEconometrics
dc.subject.fieldofresearchEconomic theory
dc.subject.fieldofresearchcode380112
dc.subject.fieldofresearchcode3801
dc.subject.fieldofresearchcode3802
dc.subject.fieldofresearchcode3803
dc.titleThe optimal size of government in Australia
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
dcterms.licensehttp://creativecommons.org/licenses/by-nc-nd/4.0/
dc.description.versionpost-print
gro.rights.copyright© 2019 Economic Society of Australia, Queensland. Published by Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence (http://creativecommons.org/licenses/by-nc-nd/4.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, providing that the work is properly cited.
gro.hasfulltextFull Text
gro.griffith.authorMakin, Tony J.
gro.griffith.authorRatnasiri, Shyama G.


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