Optimal government size and economic growth in France (1871-2008): An explanation by the State and market failures

François Facchini () and Mickaël Melki ()
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François Facchini: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique
Mickaël Melki: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper analyses the effect of public expenditure on economic growth from both a theoretical and an empirical point of view. Given that the economic literature supplies numerous and conflicting views on the topic, the article offers a framework combining both theories of market failures and State failures to account for an inverted U-shapped relation between government size and GDP growth. The empirical contribution is to provide evidence through a long time-series analysis of the existence of such a relation on the period 1871-2008 for France, which offers one of the longest stable democratic periods to analyse.

Keywords: Public spending; public expenditure; government size; BARS curve; Armey curve; economic growth; market failure; State failure; France.; France; Dépenses publiques; taille optimale de l'Etat; courbe d'Armey; croissance économique; défaillances de l'Etat et du marché. (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-fdg and nep-his
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00654363
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Citations: View citations in EconPapers (10)

Published in 2011

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Related works:
Journal Article: Efficient government size: France in the 20th century (2013)
Working Paper: Optimal Government Size and Economic Growth in France (1871-2008): An explanation by the State and Market Failures (2011)
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