The Model of Optimal Government Size in China: a Comparative and Empirical Study
LUO Zhi, YANG Guan-qiong
1.Beijing Academy of Social Science, Beijing 100101, China; 2.Qinghua University, Beijing 100084, China; 3.Beijing Normal University, Beijing 100875, China
Abstract There are three types of model on estimating optimal government size. They are the model based on “Barro rule”, the model included quadratic term and the threshold regression. It is inconsistent that the optimal government size based on these models. This paper compares estimator of optimal government size on the same dataset using these models. The result shows that the model in the form of per capita based on the “Barro rule” and threshold regression model are in line with China’s condition and the optimal government size is approximately 11%.
2013, Vol. 1 
