Elasticity of substitution, capital inflow and government size
Date
2006
Authors
Anwar, Sajid
Editors
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Journal article
Citation
Annals of Economics and Finance, 2006; 7(1):145-156
Statement of Responsibility
Sajid Anwar
Conference Name
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)
School/Discipline
Business School