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Type: Journal article
Title: Elasticity of substitution, capital inflow and government size
Author: Anwar, Sajid
Citation: Annals of Economics and Finance, 2006; 7(1):145-156
Publisher: Peking University Press
Issue Date: 2006
ISSN: 1529-7373
School/Discipline: Business School
Statement of
Sajid Anwar
Abstract: A number of recent studies have attempted to identify the determinants of government size. It is well known that the size of government has implications for welfare and economic growth. This paper shows that the size of the fixed cost involving public good provision affects the magnitude of capital inflow induced changes in government size and welfare. By making use of a simulation exercise, it is argued that capital inflow can decrease (increase) the size of government and welfare if the elasticity of substitution is sufficiently large (small)
Keywords: Producer Services ; Public Goods ; Capital Inflow ; Elasticity of Substitution.
RMID: 0020062326
Appears in Collections:Business School publications

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