Measuring the Size of Government

Sohrab Abizadeh and Alexander Basilevsky

Public Finance = Finances publiques, 1990, vol. 45, issue 3, 353-77

Abstract: The objective is to explore the correlational structure of government activity variables. By using principal components analysis with data from eighteen OECD countries (averaged between 1971-85) and variables which reflect the size of government, it is concluded that the controversy over the use of absolute versus relative measures of the size of government is extraneous to the debate. In addition, including nonexhaustive expenditures in total government outlays does not make a significant difference to the outcome of the analysis. In the process of the data analysis, major dimensions of government size are uncovered and identified.

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:pfi:pubfin:v:45:y:1990:i:3:p:353-77

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