{
  "title": "The Size of Government and U.S.-European Differences in Economic Performance",
  "publication": "IMF Working Papers, April 1, 2009",
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  "summary": "An influential strand of recent research has claimed that large governments in European countries explain their weaker long-term economic performance compared to the U.S. On the other hand, despite these alleged costs, large governments have been popular with electorates.",
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    {
      "heading": "Summary",
      "content": "- An influential strand of recent research has claimed that large governments in European countries explain their weaker long-term economic performance compared to the U.S.\n- Despite these alleged costs, large governments have been popular with electorates.\n- This paper seeks to shed light on this apparent inconsistency; it confirms an adverse effect of taxes on labor supply, but also finds evidence of efficiency-increasing government intervention.\n- However, and especially in the core \"Rhineland-model\" European countries, actual government policies often depart from such efficient interventions, pointing to the possibility that voters prefer redistribution even at the cost of allocational efficiency."
    },
    {
      "heading": "Key findings and evidence",
      "content": "- Confirms an adverse effect of taxes on labor supply.\n- Finds evidence of efficiency-increasing government intervention.\n- Observes that in core \"Rhineland-model\" European countries, actual government policies often depart from efficient interventions.\n- Interprets departures as possibly reflecting voter preferences for redistribution at the cost of allocational efficiency."
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- Trade-off highlighted between tax-induced disincentives on labor supply and potential efficiency gains from government intervention.\n- Suggests that voter preferences for redistribution can lead to policy choices that reduce allocational efficiency, even where more efficient interventions exist."
    },
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      "content": "- Authors: Gerwin Bell, Norikazu Tawara\n- Date: April 1, 2009\n- Series: Working Paper No. 2009/092\n- Issue: 092\n- Volume: 2009\n- Pages: 51\n- DOI: https://doi.org/10.5089/9781451872392.001\n- Stock No: WPIEA2009092\n- ISBN: 9781451872392\n- ISSN: 1018-5941\n- Subject tags: Labor, Labor market policy, Labor markets, Labor supply, Marginal effective tax rate, Tax policy\n- Keywords: efficiency parameter, Europe, government policy, Labor market policy, labor market policy reform, Labor markets, Labor supply, Macroeconomics, Marginal effective tax rate, policy variable, Public finance, reforms in core euro-zone economy, tax rate, utility function, WP\n\nSource: IMF Working Papers — \"The Size of Government and U.S.-European Differences in Economic Performance\" (April 1, 2009) by Gerwin Bell and Norikazu Tawara.\n\n---\n\n Content in this bundle\n\n- Wp0992\n  - Wp0992 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp0992 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-size-of-government-and-u-s-22840"
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    "Authors: Gerwin Bell, Norikazu Tawara",
    "Published: April 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451872392.001",
    "An influential strand of recent research has claimed that large governments in European countries explain their weaker long-term economic performance compared to the U.S.",
    "Despite these alleged costs, large governments have been popular with electorates.",
    "This paper seeks to shed light on this apparent inconsistency; it confirms an adverse effect of taxes on labor supply, but also finds evidence of efficiency-increasing government intervention.",
    "However, and especially in the core \"Rhineland-model\" European countries, actual government policies often depart from such efficient interventions, pointing to the possibility that voters prefer redistribution even at the cost of allocational efficiency.",
    "Confirms an adverse effect of taxes on labor supply.",
    "Finds evidence of efficiency-increasing government intervention.",
    "Observes that in core \"Rhineland-model\" European countries, actual government policies often depart from efficient interventions.",
    "Interprets departures as possibly reflecting voter preferences for redistribution at the cost of allocational efficiency.",
    "Trade-off highlighted between tax-induced disincentives on labor supply and potential efficiency gains from government intervention.",
    "Suggests that voter preferences for redistribution can lead to policy choices that reduce allocational efficiency, even where more efficient interventions exist.",
    "Authors: Gerwin Bell, Norikazu Tawara",
    "Date: April 1, 2009",
    "Series: Working Paper No. 2009/092",
    "Issue: 092",
    "Volume: 2009",
    "Pages: 51",
    "DOI: https://doi.org/10.5089/9781451872392.001",
    "Stock No: WPIEA2009092",
    "ISBN: 9781451872392",
    "ISSN: 1018-5941",
    "Subject tags: Labor, Labor market policy, Labor markets, Labor supply, Marginal effective tax rate, Tax policy",
    "Keywords: efficiency parameter, Europe, government policy, Labor market policy, labor market policy reform, Labor markets, Labor supply, Macroeconomics, Marginal effective tax rate, policy variable, Public finance, reforms in core euro-zone economy, tax rate, utility function, WP",
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