Government for the People: On the Determinants of the Size of U.S. Government

33 Pages Posted: 27 Dec 2007

See all articles by Fernando M. Goncalves

Fernando M. Goncalves

International Monetary Fund (IMF)

Tamim Bayoumi

International Monetary Fund (IMF); Centre for Economic Policy Research (CEPR)

Date Written: December 2007

Abstract

Trends in the size of U.S. government are examined. In the postwar period, general government primary spending rose by ¼ percent of GDP a year through 1975, stabilizing thereafter. With higher social transfers offset by a lower burden of defense spending, expansion reflected a baby-boom driven rise in education spending. The parallel improvement in tax efficiency helped equate the benefits of higher spending with the costs from higher taxation, in accordance with a marginalist view of the size of government. Looking forward, the retirement of baby boomers appears likely to expand government and lead to a more efficient tax system.

Keywords: Working Paper, United States

Suggested Citation

Goncalves, Fernando M. and Bayoumi, Tamim, Government for the People: On the Determinants of the Size of U.S. Government (December 2007). IMF Working Paper No. 07/289, Available at SSRN: https://ssrn.com/abstract=1078794

Fernando M. Goncalves (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Tamim Bayoumi

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6333 (Phone)
202-623-4795 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
146
Abstract Views
1,061
Rank
362,717
PlumX Metrics