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Vaclav Rybacek argues that many studies have underestimated the size of government, leading to erroneous policy recommendations and an unrealistic assessment of a government's ability to meet its debts. Drawing on Austrian economic theory, the book offers a more robust methodology for the measurement of government.
In this book-- the first that attempts to establish firm estimates of the shadow work force-- Paul C. Light explores the reasons why the official size of the federal government has remained so small while the shadow of government has grown so large.
The size of government is arguably the most controversial discussion in United States politics, and this issue won't fade from prominence any time soon. There must surely be a tipping point beyond which more government taxing and spending harms the economy, but where is that point? In this accessible book, best-selling authors Jeff Madrick, Jon Bakija, Lane Kenworthy, and Peter Lindert try to answer whether our government can grow any larger and examine how we can optimize growth and fair distribution.
This book addresses a seemingly simple question: Just how many people really work for the federal government? Official counts show a relatively small total of 1.9 million full-time civil servants, as of 1996. But, according to Paul Light, the true head count is nearly nine times higher than the official numbers, with about 17 million people actually providing the government with goods and services. Most are part of what Light calls the "shadow of government"—nonfederal employees working under federal contracts, grants, and mandates to state and local governments. In this book--the first that attempts to establish firm estimates of the shadow work force-- he explores the reasons why the official size of the federal government has remained so small while the shadow of government has grown so large. Light examines the political incentives that make the illusion of a small government so attractive, analyzes the tools used by officials to keep the official headcount small, and reveals how the appearance of smallness affects the management of government and the future of the public service. Finally, he points out ways the federal government can better manage the shadow work force it has built over the past half-century.
The authors of this timely and provocative book use the tools of economic analysis to examine the formation and change of political borders. They argue that while these issues have always been at the core of historical analysis, international economists have tended to regard the size of a country as "exogenous," or no more subject to explanation than the location of a mountain range or the course of a river. Alesina and Spolaore consider a country's borders to be subject to the same analysis as any other man-made institution. In The Size of Nations, they argue that the optimal size of a country is determined by a cost-benefit trade-off between the benefits of size and the costs of heterogeneity. In a large country, per capita costs may be low, but the heterogeneous preferences of a large population make it hard to deliver services and formulate policy. Smaller countries may find it easier to respond to citizen preferences in a democratic way. Alesina and Spolaore substantiate their analysis with simple analytical models that show how the patterns of globalization, international conflict, and democratization of the last two hundred years can explain patterns of state formation. Their aim is not only "normative" but also "positive"—that is, not only to compute the optimal size of a state in theory but also to explain the phenomenon of country size in reality. They argue that the complexity of real world conditions does not preclude a systematic analysis, and that such an analysis, synthesizing economics, political science, and history, can help us understand real world events.
Trends in the size of U.S. government are examined. In the postwar period, general government primary spending rose by 1/4 percent of GDP a year through 1975, stabilizing thereafter. With higher social transfers offset by a lower burden of defense spending, expansion reflected a baby-boom driven rise in education spending. The parallel improvement in tax efficiency helped equate the benefits of higher spending with the costs from higher taxation, in accordance with a marginalist view of the size of government. Looking forward, the retirement of baby boomers appears likely to expand government and lead to a more efficient tax system.