Analysis of the Optimal Size of the Government Consumption

17 Pages Posted: 7 Jul 2011 Last revised: 25 Aug 2011

See all articles by Dushko Josheski

Dushko Josheski

University Goce Delcev

Darko Lazarov

University Goce Delcev

Cane Koteski

University Goce Delcev

Date Written: July 7, 2011

Abstract

The aim of this paper is to investigate the size of the government in 12 OECD countries. Data are gathered from Penn Tables. Clustered robust OLS estimation techniques have been used. Also Panel estimation techniques have been applied, FE and RE estimation. The functional form is quadratic is been used, to determine the point where the size of the government is optimal. Government consumption has been used as a proxy variable for government size.

Keywords: Government size, Clustered robust OLS, quadratic equation, Armey curve,Panel data, Fixed effect estimation, Random effects estimation, GLS , Pooled OLS

JEL Classification: E0, EO2, H0,C33, E62

Suggested Citation

Josheski, Dushko and Lazarov, Darko and Koteski, Cane, Analysis of the Optimal Size of the Government Consumption (July 7, 2011). Available at SSRN: https://ssrn.com/abstract=1880905 or http://dx.doi.org/10.2139/ssrn.1880905

Dushko Josheski (Contact Author)

University Goce Delcev ( email )

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Macedonia
+389 32 550 000 (Phone)
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HOME PAGE: http://www.ugd.edu.mk/

Darko Lazarov

University Goce Delcev ( email )

PO box 201
Stip, 2000
Macedonia
+389 550 317 (Phone)

Cane Koteski

University Goce Delcev ( email )

PO box 201
Stip, 2000
Macedonia

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