2016

Government Size and Growth: A Rejoinder

Reprint No. 2016:12

Author(s): Andreas Bergh and Magnus HenreksonYear: 2016 Title: Journal of Economic Surveys Volume (No.): 30 (2) Pages: 393–396
Online article (restrictions may apply)


In our 2011 survey of the literature in the Journal of Economic Surveys on the effect of government size on economic growth in wealthy countries we find a relatively consistent pattern: An increase in government size by 10 percentage points is associated with a 0.5–1 percentage point lower annual growth rate. This conclusion is questioned by Colombier. In this rejoinder we present a rebuttal of Colombier's argument based on a detailed scrutiny of his own statistical evidence and regression results. Furthermore, we note that several new papers that have appeared since our original paper was published give support to our main conclusion.


Reference:
Bergh, Andreas and Magnus Henrekson (2016), "Government Size and Growth: A Rejoinder". Journal of Economic Surveys 30(2), 393–396.

Andreas Bergh

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Mob: 070 779 0734
andreas.bergh@ifn.se

Magnus Henrekson

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Mob: +46 (0)70 222 9700
magnus.henrekson@ifn.se

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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