Efficient government size: France in the 20th century

Facchini, François; Melki, Mickael

doi:10.1016/j.ejpoleco.2013.03.002

Cited by 71 publications

(45 citation statements)

References 71 publications

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“…The distinct perspectives, experiences, and expectations over the role of the government in domestic economies have naturally been stimulating a prolific body of research. The economic literature is rich in analyses evaluating such issues and recent studies have examined, inter alia , the existence of an optimum government size (Facchini and Melki, ), or the relationship between the size of the government and disparate issues such as human development (Davies, ), economic growth (Yamamura, ), democracy and corruption (Kotera et al., ), economic development (Martins and Veiga, ), trade openness (Jetter and Parmeter, ), or a country's net foreign asset position (Erauskin, ).…”

Section: Contextualization Of the Problemmentioning

confidence: 99%

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An application of the ELECTRE TRI‐C method to characterize government performance in OECD countries

Costa

Figueira

Vieira

et al. 2017

Int Trans Operational Res

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In the 2010 Toronto summit, the leaders of the G‐20 countries agreed on the implementation of urgent fiscal consolidation plans, following the expansionary policies adopted to curb the recessionary effects of the financial crisis. Unprecedented cuts in public expenditures have taken place, particularly in the European Union periphery, reviving the discussion on the optimal size of the public sector. Supporters of fiscal restraint defend that bigger governments tend to be more inefficient, its opponents assume that government size determines the effectiveness of its performance. However, the social and economic impacts from contractionary fiscal policies ultimately depend on the level of public sector efficiency. Relatively inefficient governments have more scope to consolidate without compromising social welfare. In this paper, we adopt a multiple decision aiding approach, not previously employed for the assessment of complex macroeconomic performances, and employ the ELECTRE TRI‐C outranking method to categorize OECD countries on a set of criteria representing the quality of their public sectors. We then compare the obtained classifications with the share of each government's expenditures on GDP, to identify distinct levels of efficiency. Our analysis suggests that various countries exhibit a margin for efficiency gains, attenuating the social and economic effects of fiscal consolidation policies.

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Section: Contextualization Of the Problemmentioning

confidence: 99%

“…Facchini and Melki () used co‐integration; Karras () and Günalp and Dinçer () calculated the optimum government size using the estimated coefficients of an equation developed with the “Barro rule”; Buti et al. () derived a theoretical model and performed some empirical simulations; Pevcin () developed a regression analysis.…”

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confidence: 99%

An application of the ELECTRE TRI‐C method to characterize government performance in OECD countries

Costa

Figueira

Vieira

et al. 2017

Int Trans Operational Res

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“…Afonso et al, 2005;Hauner and Kyobe, 2010;Badun et al, 2014). The closest DEA applications are, however, those that have studied the macroeconomic performance of countries, taking into account variables such as total government expenditure, tax burden, fiscal deficit, debt and Gross Domestic Product The reason why we need to consider a non-monotonic DEA approach in this application is because there is ample empirical evidence of an inverted U-shaped relationship between government spending and GDP growth, the so-called BARS curve (Facchini and Melki, 2013;Badun et al 2014). Similarly, there seems to exist a non-linear, inverted U-type relationship between public debt and GDP growth, the so-called Debt Laffer curve (e.g.…”

Section: Application To Macroeconomic Efficiency Of Eu Governmentsmentioning

confidence: 99%

DEA with non-monotonic variables. Application to EU governments’ macroeconomic efficiency

Villa

Lozano

2016

Journal of the Operational Research Society

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Conventional Data Envelopment Analysis (DEA) considers monotonic variables, i.e. the lower the inputs and the larger the outputs, the better. There are, however, occasions when the monotonicity of a variable with respect to efficiency depends on the value of the variable, i.e.in a certain range of values an increase in the variable is desirable, while in another range it is a decrease of the variable that is desirable. In this paper, a DEA model that solves problems considering non-monotonic variables is proposed. An application to assess the macroeconomic efficiency of European Union (EU) Member States, as regards taxation, gross debt, GDP growth and employment is presented.

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“…3 2 For some other studies, see, e.g., Mendoza et al (1997), Bleaney et al (2001) and Facchini and Melki (2013).…”

Section: Previous Literaturementioning

confidence: 99%

Legitimacy and the cost of government

2014

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Efficient government size: France in the 20th century

Cited by 71 publications

References 71 publications

An application of the ELECTRE TRI‐C method to characterize government performance in OECD countries

An application of the ELECTRE TRI‐C method to characterize government performance in OECD countries

DEA with non-monotonic variables. Application to EU governments’ macroeconomic efficiency

Legitimacy and the cost of government

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