Legitimacy and the cost of government

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25940082%3A_____%2F15%3AN0000009" target="_blank" >RIV/25940082:_____/15:N0000009 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/61384399:31150/15:00046171

Výsledek na webu

<a href="http://dx.doi.org/10.1007/s11127-014-0224-9" target="_blank" >http://dx.doi.org/10.1007/s11127-014-0224-9</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s11127-014-0224-9" target="_blank" >10.1007/s11127-014-0224-9</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Legitimacy and the cost of government

Popis výsledku v původním jazyce

While previous research documents a negative relationship between government size and economic growth, suggesting an economic cost of big government, a given government size generally affects growth differently in different countries. As a possible explanation of this differential effect, we explore whether government legitimacy (measured by satisfaction with the way democracy works) influences how a certain government size affects growth. On the positive side, a government perceived as legitimate may “get away” with being big since legitimacy can affect behavioral response to, and therefore the economic growth cost of, taxation and government expenditures. On the negative side, perceived legitimacy may make voters less prone to acquire information, which in turn facilitates interest-group oriented or populist policies that harm growth. A panel-data analysis of up to 30 developed countries, in which two different measures of the size of government are interacted with government legitimacy, reveals that perceived legitimacy exacerbates a negative growth effect of government size in the long run. This could be interpreted as governments taking advantage of being regarded as legitimate in order to secure short-term support at a long-term cost to the economy.

Název v anglickém jazyce

Legitimacy and the cost of government

Popis výsledku anglicky

While previous research documents a negative relationship between government size and economic growth, suggesting an economic cost of big government, a given government size generally affects growth differently in different countries. As a possible explanation of this differential effect, we explore whether government legitimacy (measured by satisfaction with the way democracy works) influences how a certain government size affects growth. On the positive side, a government perceived as legitimate may “get away” with being big since legitimacy can affect behavioral response to, and therefore the economic growth cost of, taxation and government expenditures. On the negative side, perceived legitimacy may make voters less prone to acquire information, which in turn facilitates interest-group oriented or populist policies that harm growth. A panel-data analysis of up to 30 developed countries, in which two different measures of the size of government are interacted with government legitimacy, reveals that perceived legitimacy exacerbates a negative growth effect of government size in the long run. This could be interpreted as governments taking advantage of being regarded as legitimate in order to secure short-term support at a long-term cost to the economy.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2015

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Public Choice

ISSN

0048-5829

e-ISSN

1573-7101

Svazek periodika

162

Číslo periodika v rámci svazku

3-4

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

22

Strana od-do

307–328

Kód UT WoS článku

000350997000009

EID výsledku v databázi Scopus

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