Economic growth and government size in OECD countries: New evidence from the quantile regression approach

Sheng Tung Chen, Chi Chung Chen, Yoonbai Kim

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

The purpose of this paper is to employ the quantile regression methodology to investigate the relationship between government size and economic growth using a panel data set for 24 OECD countries. We find that the magnitude of the effect of government size on economic growth varies through the quantiles. When the economic growth is low, increasing the size of the government may have a positive effect and stimulate economic growth. However, as the economic growth rate increases, such an effect declines and has a negative effect on economic growth.

Original languageEnglish
Pages (from-to)416-425
Number of pages10
JournalEconomics Bulletin
Volume31
Issue number1
StatePublished - 2011

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance

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