Optimal Government Size and Economic Growth in France (1871-2008): An explanation by the State and Market Failures

François Facchini and Mickaël Melki ()
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Mickaël Melki: Centre d'Economie de la Sorbonne, https://centredeconomiesorbonne.cnrs.fr

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: This paper analyses the effect of public expenditure on economic growth from both a theoretical and an empirical point of view. Given that the economic literature supplies numerous and conflicting views on the topic, the article offers a framework combining both theories of market failures and State failures to account for an inverted U-shapped relation between government size and GDP growth. The empirical contribution is to provide evidence through a long time-series analysis of the existence of such a relation on the period 1871-2008 for France, which offers one of the longest stable democratic periods to analyse

Keywords: Public spending; public expenditure; government size; BARS curve; Armey Curve; economic growth; market failure; France (search for similar items in EconPapers)
JEL-codes: H11 H50 P44 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2011-12
New Economics Papers: this item is included in nep-fdg, nep-his and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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ftp://mse.univ-paris1.fr/pub/mse/CES2011/11077.pdf (application/pdf)

Related works:
Journal Article: Efficient government size: France in the 20th century (2013)
Working Paper: Optimal government size and economic growth in France (1871-2008): An explanation by the State and market failures (2011)
Working Paper: Optimal government size and economic growth in France (1871-2008): An explanation by the State and market failures (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:11077

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