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Sheng-Tung Chen, Chi-Chung Chen and Yoonbai Kim
''Economic Growth and Government Size in OECD Countries: New Evidence from the Quantile Regression Approach''
( 2011, Vol. 31 No.1 )
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.
Keywords: Economic growth; Government size; Quantile regression
JEL: E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General
O4 - Economic Growth and Aggregate Productivity: General
Manuscript Received : Aug 17 2010 Manuscript Accepted : Jan 24 2011

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