Author : Norikazu Tawara
Publisher : International Monetary Fund
ISBN 13 : 1451872399
Total Pages : 53 pages
Book Rating : 4.4/5 (518 download)
Book Synopsis The Size of Government and U.S.-European Differences in Economic Performance by : Norikazu Tawara
Download or read book The Size of Government and U.S.-European Differences in Economic Performance written by Norikazu Tawara and published by International Monetary Fund. This book was released on 2009-04-01 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: An influential strand of recent research has claimed that large governments in European countries explain their weaker long-term economic performance compared to the U.S. On the other hand, despite these alleged costs, large governments have been popular with electorates. This paper seeks to shed light on this apparent inconsistency; it confirms an adverse effect of taxes on labor supply, but also finds evidence of efficiency-increasing government intervention. However, and especially in the core "Rhineland-model" European countries, actual government policies often depart from such efficient interventions, pointing to the possibility that voters prefer redistribution even at the cost of allocational efficiency.