Date of Award

Fall 12-2007

Degree Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

Political Science, International Development, and International Affairs

Committee Chair

Dr. Shahdad Naghshpour

Committee Chair Department

Political Science, International Development, and International Affairs

Committee Member 2

Dr. Joseph St. Marie

Committee Member 2 Department

Political Science, International Development, and International Affairs

Committee Member 3

Dr. David Butler

Committee Member 3 Department

Political Science, International Development, and International Affairs

Committee Member 4

Dr. Robert Pauly

Committee Member 4 Department

Political Science, International Development, and International Affairs

Abstract

This paper investigates the effects of government size and structure on economic growth. It will employ the logic of the Armey Curve, which is similar to the Laffer curve, to explain the correlation between central government size and GDP. In short, government can enhance output versus an anarchical society, but too much of a good thing retards growth as government consumes more and severely retards the potential gains of the given incentive structure. Using OECD nations as a sample, a taxonomy of the sample countries is developed, based on the extant literature. In each model of capitalism, the government and economy are examined in relation to spending patterns, regulatory environment, political/government structure, and legal system. We test for robustness for each model and then turn to assessing each model’s past growth as well as potential growth.

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