IDEAS home Printed from https://ideas.repec.org/a/fip/fedlrv/y2006ijanp13-30nv.88no.1.html
   My bibliography  Save this article

On the size and growth of government

Author

Listed:
  • Thomas A. Garrett
  • Russell M. Rhine

Abstract

The size of the U.S. federal government, as well as state and local governments, increased dramatically during the 20th century. This paper reviews several theories of government size and growth that are dominant in the public choice and political science literature. The theories are divided into two categories: citizen-over-state theories and state-over-citizen theories. The relationship between the 16th Amendment to the U.S. Constitution and the timing of government growth is also presented. It is likely that portions of each theory can explain government size and growth, but the challenge facing economists is to develop a single unifying theory of government growth.

Suggested Citation

  • Thomas A. Garrett & Russell M. Rhine, 2006. "On the size and growth of government," Review, Federal Reserve Bank of St. Louis, vol. 88(Jan), pages 13-30.
  • Handle: RePEc:fip:fedlrv:y:2006:i:jan:p:13-30:n:v.88no.1
    as

    Download full text from publisher

    File URL: https://files.stlouisfed.org/files/htdocs/publications/review/06/01/GarrettRhine.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150-150, March.
    2. Kristov, Lorenzo & Lindert, Peter & McClelland, Robert, 1992. "Pressure groups and redistribution," Journal of Public Economics, Elsevier, vol. 48(2), pages 135-163, July.
    3. Oates, Wallace E, 1985. "Searching for Leviathan: An Empirical Study," American Economic Review, American Economic Association, vol. 75(4), pages 748-757, September.
    4. Zax, Jeffrey S, 1989. "Is There a Leviathan in Your Neighborhood?," American Economic Review, American Economic Association, vol. 79(3), pages 560-567, June.
    5. Dennis Mueller & Peter Murrell, 1986. "Interest groups and the size of government," Public Choice, Springer, vol. 48(2), pages 125-145, January.
    6. Peltzman, Sam, 1980. "The Growth of Government," Journal of Law and Economics, University of Chicago Press, vol. 23(2), pages 209-287, October.
    7. Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, October.
    8. Albert Breton, 1974. "The economic theory of representative government: A reply," Public Choice, Springer, vol. 20(1), pages 129-133, December.
    9. Peltzman, Sam, 1980. "The Growth of Government," Working Papers 1, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    10. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922, October.
    11. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    12. Martin, Dolores Tremewan & Wagner, Richard E, 1978. "The Institutional Framework for Municipal Incorporation: An Economic Analysis of Local Agency Formation Commissions in California," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 409-425, October.
    13. Gordon Tullock, 1959. "Problems of Majority Voting," Journal of Political Economy, University of Chicago Press, vol. 67(6), pages 571-571.
    14. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
    15. Kevin L. Kliesen, 2003. "Big government the comeback kid?," The Regional Economist, Federal Reserve Bank of St. Louis, issue Jan, pages 4-9.
    16. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(3), pages 371-400.
    17. N/A, 1995. "Documents," South Asian Survey, , vol. 2(1), pages 119-140, March.
    18. Nelson, Michael A, 1987. "Searching for Leviathan: Comment and Extension," American Economic Review, American Economic Association, vol. 77(1), pages 198-204, March.
    19. Ferris, J Stephen & West, Edwin G, 1999. "Cost Disease versus Leviathan Explanations of Rising Government Cost: An Empirical Investigation," Public Choice, Springer, vol. 98(3-4), pages 307-316, March.
    20. Anthony Downs, 1961. "Problems of Majority Voting: In Defense of Majority Voting," Journal of Political Economy, University of Chicago Press, vol. 69(2), pages 192-192.
    21. James Bennett & Manuel Johnson, 1979. "Public versus private provision of collective goods and services: garbage collection revisited," Public Choice, Springer, vol. 34(1), pages 55-63, March.
    22. Clarkson, Kenneth W, 1972. "Some Implications of Property Rights in Hospital Management," Journal of Law and Economics, University of Chicago Press, vol. 15(2), pages 363-384, October.
    23. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
    24. N/A, 1995. "Documents," South Asian Survey, , vol. 2(2), pages 271-282, September.
    25. Allan Meltzer & Scott Richard, 1983. "Tests of a rational theory of the size of government," Public Choice, Springer, vol. 41(3), pages 403-418, January.
    26. William F. Shughart II & Laura Razzolini (ed.), 2001. "The Elgar Companion to Public Choice," Books, Edward Elgar Publishing, number 459.
    27. Thomas A. Garrett & Russell M. Rhine, 2005. "Social security versus private retirement accounts: a historical analysis," Review, Federal Reserve Bank of St. Louis, vol. 87(Mar), pages 103-121.
    28. Rogers Ahlbrandt, 1973. "Efficiency in the provision of fire services," Public Choice, Springer, vol. 16(1), pages 1-15, September.
    29. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-664, August.
    30. Bendor, Jonathan & Taylor, Serge & Gaalen, Roland Van, 1985. "Bureaucratic Expertise versus Legislative Authority: A Model of Deception and Monitoring in Budgeting," American Political Science Review, Cambridge University Press, vol. 79(4), pages 1041-1060, December.
    31. R. G. Holcombe & D. J. Lacombe, 1998. "Interests Versus Ideology in the Ratification of the 16th and 17th Amendments," Economics and Politics, Wiley Blackwell, vol. 10(2), pages 143-160, July.
    32. James R. Hines & Richard H. Thaler, 1995. "The Flypaper Effect," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 217-226, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Albanese, Giuseppe & Modica, Salvatore, 2010. "Co-movement of public spending in the G7," Economics Letters, Elsevier, vol. 109(2), pages 121-123, November.
    2. Roberta da Silva Vieira, 2009. "O Tamanho do Setor Público no Contexto do Federalismo: Um Modelo Aplicado aos Municípios Brasileiros," Discussion Papers 1415, Instituto de Pesquisa Econômica Aplicada - IPEA.
    3. Magazzino, Cosimo & Forte, Francesco, 2010. "Optimal size of government and economic growth in EU-27," MPRA Paper 26669, University Library of Munich, Germany.
    4. Siham MATALLAH & Lahouari BENLAHCENE, 2021. "Public service delivery dilemma and economic growth challenges in the MENA Region," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(629), W), pages 31-50, Winter.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jørgen Andersen, 2012. "Costs of taxation and the size of government," Public Choice, Springer, vol. 153(1), pages 83-115, October.
    2. Thomas A. Garrett & Andrew F. Kozak & Russell M. Rhine, 2010. "Institutions and government growth: a comparison of the 1890s and the 1930s," Review, Federal Reserve Bank of St. Louis, vol. 92(Mar), pages 109-120.
    3. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    4. Francois Facchini, 2018. "What Are the Determinants of Public Spending? An Overview of the Literature," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(4), pages 419-439, December.
    5. Lars P. Feld & Gebhard Kirchgässner & Christoph A. Schaltegger, 2010. "Decentralized Taxation and the Size of Government: Evidence from Swiss State and Local Governments," Southern Economic Journal, John Wiley & Sons, vol. 77(1), pages 27-48, July.
    6. Milad Zarin-Nejadan, 2011. "Government and Growth," IRENE Working Papers 11-02, IRENE Institute of Economic Research.
    7. Günther G. Schulze & Heinrich W. Ursprung, 1999. "Globalisation of the Economy and the Nation State," The World Economy, Wiley Blackwell, vol. 22(3), pages 295-352, May.
    8. Tridimas, George & Winer, Stanley L., 2005. "The political economy of government size," European Journal of Political Economy, Elsevier, vol. 21(3), pages 643-666, September.
    9. Thomas Bernauer & Vally Koubi, 2013. "Are bigger governments better providers of public goods? Evidence from air pollution," Public Choice, Springer, vol. 156(3), pages 593-609, September.
    10. Dennis Mueller & Peter Murrell, 1986. "Interest groups and the size of government," Public Choice, Springer, vol. 48(2), pages 125-145, January.
    11. Michael Keen, 1997. "Peculiar institutions: A British perspective on tax policy in the United States," Fiscal Studies, Institute for Fiscal Studies, vol. 18(4), pages 371-400, November.
    12. George Tridimas & Stanley L. Winer, 2004. "A Contribution to the Political Economy of Government Size: 'Demand', 'Supply' and 'Political Influence'," Carleton Economic Papers 04-04, Carleton University, Department of Economics.
    13. Hoyt, William H., 1999. "Leviathan, local government expenditures, and capitalization," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 155-171, March.
    14. Grossmann, Volker, 2003. "Income inequality, voting over the size of public consumption, and growth," European Journal of Political Economy, Elsevier, vol. 19(2), pages 265-287, June.
    15. Becker, Gary S & Mulligan, Casey B, 2003. "Deadweight Costs and the Size of Government," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 293-340, October.
    16. Philip J. Grossman, 1992. "Fiscal Decentralization and Public Sector Size in Australia," The Economic Record, The Economic Society of Australia, vol. 68(3), pages 240-246, September.
    17. Mwangi Kimenyi & William Shughart, 1989. "Political successions and the growth of government," Public Choice, Springer, vol. 62(2), pages 173-179, August.
    18. Gebhard Kirchgassner, 2002. "The effects of fiscal institutions on public finance: a survey of the empirical evidence," Chapters, in: Stanley L. Winer & Hirofumi Shibata (ed.), Political Economy and Public Finance, chapter 9, Edward Elgar Publishing.
    19. Rodden, Jonathan, 2003. "Reviving Leviathan: Fiscal Federalism and the Growth of Government," International Organization, Cambridge University Press, vol. 57(4), pages 695-729, October.
    20. Randall Holcombe, 2005. "Government growth in the twenty-first century," Public Choice, Springer, vol. 124(1), pages 95-114, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedlrv:y:2006:i:jan:p:13-30:n:v.88no.1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Scott St. Louis (email available below). General contact details of provider: https://edirc.repec.org/data/frbslus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.