A Rational Theory of the Size of Government

@article{Meltzer1981ART,
  title={A Rational Theory of the Size of Government},
  author={A. Meltzer and S. Richard},
  journal={Journal of Political Economy},
  year={1981},
  volume={89},
  pages={914 - 927}
}
In a general equilibrium model of a labor economy, the size of government, measured by the share of income redistributed, is determined by majority rule. Voters rationally anticipate the disincentive effects of taxation on the labor-leisure choices of their fellow citizens and take the effect into account when voting. The share of earned income redistributed depends on the voting rule and on the distribution of productivity in the economy. Under majority rule, the equilibrium tax share balances… Expand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 51 REFERENCES
Tests of a rational theory of the size of government
The Optimal Linear Income-tax
The Growth of Government
  • S. Peltzman
  • Economics
  • The Journal of Law and Economics
  • 1980
Economic theory of democracy
Bureaucracy and representative government
...
1
2
3
4
5
...