Note on the Optimal Size of Government

Ting Chiung ()
Additional contact information
Ting Chiung: Michigan State University

European Journal of Business and Economics, 2011, vol. 3, issue 0, 41-42 volume1: 3

Abstract: Since government is a nonprofit organization, I apply firmtheory under zero profit condition to analyze the optimal sizeof government. Government should minimize short­runaverage cost while demand for public service is equal tosupply of public service. The optimal size of governmentimplies (1) tax is minimized under balance budget givenpublic service and (2) budget surplus and budget deficit areinefficient (i.e., balance budget is Pareto optimum)

Keywords: GovernmentOptimal Size; Efficiency; Minimum Tax; Budget Balance (search for similar items in EconPapers)
JEL-codes: H21 H32 H60 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ojs.journals.cz/index.php/EJBE/article/view/118/123 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aad:ejbejj:v:3:y:2011:i:0:p:41-42

DOI: 10.12955/ejbe.v3i0.118

Access Statistics for this article

More articles in European Journal of Business and Economics from Central Bohemia University
Bibliographic data for series maintained by Petr Hájek ().