Abstract

http://ssrn.com/abstract=1335877
 
 

References (40)



 
 

Citations (1)



 


 



Federal, State, and Local Governments: Evaluating Their Separate Roles in US Growth


Matthew John Higgins


Scheller College of Business, Georgia Institute of Technology; National Bureau of Economic Research (NBER)

Andrew T. Young


West Virginia University - College of Business and Economics

Daniel Levy


Bar-Ilan University - Department of Economics; Emory University - Department of Economics; Rimini Center for Economic Analysis


Public Choice, Forthcoming
Emory Law and Economics Research Paper No. 9-42

Abstract:     
We use US county level data (3,058 observations) from 1970 to 1998 to explore the relationship between economic growth and the extent of government employment at three levels: Federal, state and local. We find that increases in federal, state and local government employments are all negatively associated with economic growth. We find no evidence that government is more efficient at lower levels. While we cannot separate out the productive and redistributive services of government, we document that the county-level income distribution became slightly more unequal from 1970 to 1998. For those who justify government activities in terms of equity concerns - perhaps even trading off economic growth for equity - the burden falls on them to show that the income distribution would have widened more in the absence of government activities. We conclude that a release of government-employed labor inputs to the private sector would be growth-enhancing.

Number of Pages in PDF File: 28

Keywords: Economic Growth, Federal Government, State Government, Local Government, County-Level Data, Metro and Non-Metro Counties, Income Distribution, Equity

JEL Classification: O40, O11, O18, O51, R11, H50, H70

Accepted Paper Series


Download This Paper

Date posted: January 31, 2009  

Suggested Citation

Higgins, Matthew John and Young, Andrew T. and Levy, Daniel, Federal, State, and Local Governments: Evaluating Their Separate Roles in US Growth. Public Choice, Forthcoming; Emory Law and Economics Research Paper No. 9-42. Available at SSRN: http://ssrn.com/abstract=1335877

Contact Information

Matthew John Higgins
Scheller College of Business, Georgia Institute of Technology ( email )
800 West Peachtree Street
Atlanta, GA 30308
United States
404-894-4368 (Phone)
404-894-6030 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Andrew T. Young
West Virginia University - College of Business and Economics ( email )
P.O. Box 6025
Morgantown, WV 26506
United States
3042934526 (Phone)
Daniel Levy (Contact Author)
Bar-Ilan University - Department of Economics ( email )
Ramat-Gan, 5290002
Israel
+972 3 531-8345 (Phone)
+972 3 738-4034 (Fax)
HOME PAGE: http://econ.biu.ac.il/en/levy

Emory University - Department of Economics ( email )
1602 Fishburne Drive, Suite 306
Rich Building
Atlanta, GA 30322-0001
United States
HOME PAGE: http://economics.emory.edu/home/people/faculty/Levydaniel.html
Rimini Center for Economic Analysis ( email )
Via Patara, 3
Rimini (RN), RN 47900
Italy
HOME PAGE: http://www.rcfea.org/
Feedback to SSRN


Paper statistics
Abstract Views: 634
Downloads: 74
Download Rank: 89,578
References:  40
Citations:  1
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.313 seconds