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 language | English |
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Pages (from-to) | 416-425 |
Number of pages | 10 |
Journal | Economics Bulletin |
Volume | 31 |
Issue number | 1 |
State | Published - 2011 |
ASJC Scopus subject areas
- General Economics, Econometrics and Finance