The Abrams curve of government size and unemployment: evidence from panel data

Dimitris Christopoulos, John (Ioannis) Loizides and Mike Tsionas

Applied Economics, 2005, vol. 37, issue 10, 1193-1199

Abstract: This study investigates the long run relationship between government size and unemployment rate, the Abrams curve, using ten European countries over the period 1961-1999. To this end, panel cointegration analysis and estimation techniques appropriate for heterogeneous panels are made use of. The results support the idea that there is an Abrams curve, and the relation between government size and the unemployment rate is positive.

Date: 2005
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DOI: 10.1080/00036840500109274

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