The size of government

Most research on the causes of growth in government expenditure has focused on the demand for government services. In this paper, we argue that in fact this growth may have occurred because of changes in supply. Changes in technology leading to increased specialization and thus increased opportunity costs of self-production have led to increased market production and increased record keeping. Also, female labor force participation has increased. Both of these factors serve to reduce the (efficiency) cost of collecting taxes; if the demand for government spending has not changed, this increase in supply would lead to a larger public sector. We estimate a system of simultaneous equations for the period 1929–1970 incorporating this hypothesis, and the results are consistent with the theory. We are able to explain virtually all of the growth of government; increases in female labor force participation seems to be a very important variable in this explanation.     

Fiscal decentralization and government size

Numerous studies have attempted to model the possible factors contributing to universal growth in public sectors. This paper analyzes one device that appears capable of controlling some of that growth: fiscal decentralization. The results reported here also support the use of monopoly government assumptions in models of public policy     

Divided government and US federal rulemaking

Despite paying a great deal of attention to the effects of divided government on legislative outputs, scholars of American politics have surprisingly ignored the potential impact of divided government on bureaucratic regulatory outputs. In this article we argue that divided government should reduce the volume of federal agency rulemaking. We test this hypothesis against a data set covering 21,000 rules from 1983 to 2005. Our study is one of the first to analyze the determinants of federal bureaucratic rulemaking activity across such a long period of time. Our results demonstrate that during periods of divided government, agencies issue fewer rules and fewer substantively significant rules than they do during periods of unified government. These findings suggest that divided government impedes agency rulemaking.     

Costs of taxation and the size of government

Existing theory on the form of government suggests that a parliamentary system promotes a larger size of government than does a presidential system. This paper extends the existing theory by allowing for distortionary taxation. A main result is that if taxation is sufficiently distortionary, the parliamentary system may promote a smaller size of government than the presidential system. The proposed mechanism appears consistent with several empirical patterns in the data that cannot be explained by other theories.     

Ideology and campaign activity at three levels of government

This article examines the relationship between self-designated political ideology, opinions on twenty-one issues, and campaign activity at local, state, and national levels. The samples examined include delegates to the 1984 Party Conventions in eleven states. Generally, the findings indicate that ideology and issue position are most strongly associated with activity in national campaigns. Among Democrats liberalism is associated with national activity, whereas among Republicans those who are conservative are most active in national campaigns. Some important intraparty differences are found between local campaign activists and national activists. For example, among Democrats local campaign activists are much more conservative than national activists on several issues.     

The optimal size of government

In the economic analysis of the theory of government, two views of government are evident. The Pigovian view sees government as a benevolent actor striving to correct for the inadequacies and excesses of an unrestrained marketplace. The ‘Public Choice’ view of government portrays government as the tool of special interest groups as likely to generate distortions as to correct them. In this paper, a model of government that incorporates both views will be developed and then empirically tested. The model developed assumes that all expenditures by the government are inputs into the private sector production. Treating government expenditures as inputs into the production of private sector output, there is some optimal size of government that maximizes private sector output. The model incorporates a general production function for private sector output. Output is a function of private labor, private capital, and government expenditures. The Pigovian and Public Choice views of government are reflected in the assumed impact of G on the marginal productivities of L and K. The model is tested using United States data and a Cobb-Douglas production function. Estimates indicate that the 1983 level of government expenditures exceeds by 87 percent the level that would maximize private sector output. Reducing government from $ 491 billion to $ 263 billion and shifting the freed labor to the private sector would increase output from $ 1187 billion to $ 1451 billion.     

Tax decentralization and local government size

This paper investigates the relationship between fiscal federalism and the sizes of local governments. While many empirical studies emphasized that grants encourage the growth of local public spending and local taxes constrain it, they are more silent regarding the effects of different types of tax autonomy. The paper addresses this issue by arguing that tax decentralization as organized on tax bases used only by local governments (tax-separation), rather than on tax-base sharing, would restrain local public expenditures. Using an unbalanced panel of OECD countries, the key finding is that only property taxes—mostly based on a “tax-separation” scheme—seem to favor smaller local governments. Thus, while tax decentralization is a necessary condition for limiting the growth of local governments, it does not appear sufficient, as tax-separation schemes among government levels would in fact be required.     

Ideology,class and the origin of the Islamic state

Text reviewed:

Sulayman Bashir (1978) Tawazun an‐naqaid; muhadarat fi‐l‐jahiliyya wa sadr al‐islam (The Balance of Contradictions; lectures on the pre‐Islamic period and early Islam), Jerusalem.     

Ideology and strategic party disloyalty in the US house of representatives

We offer a theory of strategic party disloyalty to explain roll call voting in the US House. Our theory suggests that ideologically extreme legislators become markedly less loyal to their party when it controls the majority. They stake out positions that align with the views of their extreme constituents when policy is likely to move in their direction. In contrast, ideological moderates become noticeably more loyal when they transition to the majority. Examining 35 years of ideal point estimates and measures of party unity on roll calls, we find clear evidence that member strategy, ideology, and legislative agenda setting interact to structure the frequency of defections. Further, we find evidence that defection and ideology interact to influence subsequent electoral outcomes.     

Commercialisation of state government legal services

Most people who have worked in the public sector for over a decade have experienced dramatic change in the way they do business. For some, the change has been rapid. Others have been able to hold onto traditional methods. One area of business steeped in tradition is the area of legal services. In the Queensland public sector, current changes in the way in which legal services are provided reflect many of the changes that have already occurred in other business units. We should learn from the experiences of others, tap into the needs of those utilising legal services and reflect upon the importance of those traditional values. This article argues that the time for a comprehensive and transparent review of legal services in the Queensland public sector is now.     

The effect of government size on the unemployment rate

Recent empirical studies have revealed that the size of government is inversely related to economic growth and technical efficiency. Evidence is presented linking the size of government to reported unemployment rates for the industrial countries during recent years. This finding helps to explain the empirical link between government size and poor macroeconomic performance.     

Corruption and government size: A disaggregated analysis

Using annual state-level data over 1983–1987, this paper examines the effect of government size on corruption by public officials by including both demand and supply side incentives for engaging in corrupt practices. Our objectives are twofold. First, we assess the relationship between the incidence of corruption and overall measures of the size of the federal government and the state-local sector in each state. Second, we explore what kinds of government activities are more likely to be successful in deterring abuse of public office. Our results are generally supportive of Becker's “crime and punishment” model. Regarding the primary focus of the paper, our results show that government size, in particular spending by state governments, does indeed have a strong positive influence on corruption.     

Fiscal decentralization and government size: An extension

This paper analyzes one method governments employ to circumvent the discipline of a competitive system of fiscal federalism — intergovernmental collusion in the form of intergovernmental grants. Grants, it is argued, serve to encourage the expansion of the public sector by concentrating taxing powers in the hands of the central government and by weakening the fiscal discipline imposed on governments forced to self-finance their expenditures. The results reported suggest that intergovernmental grants do encourage growth in the public sector. The results offer further support for the use of monopoly government assumptions in public sector modeling.