Unemployment and government size: Is there any credible causality?

Dimitris Christopoulos and Mike Tsionas

Applied Economics Letters, 2002, vol. 9, issue 12, 797-800

Abstract: This paper investigates the Abrams curve, that is the relationship between government size and unemployment, for 10 European countries over the period 1961-1999. This paper uses credible causality inferences that do not depend on the stationarity or cointegration properties of the data. The results support the idea that there is an Abrams curve but the relation between government size and the unemployment rate is not likely to be simple.

Date: 2002
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DOI: 10.1080/13504850210129432

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