Size of Government: Measurement, Methodology and Official Statistics

Václav Rybácek's book highlights the underestimation of the size of government in studies related to economic growth,productivity,and inflation,using national accounts and published statistics. This has led to erroneous economic policy recommendations and an unrealistic assessment of a government's ability to meet its debts. The book offers a more robust methodology for measuring government size based on Austrian economic theory,recalculating fiscal indicators and GDP to present a more appropriate set of data for analyzing public sector dynamics in EU countries.

Format: Hardback
Length: 192 pages
Publication date: 21 December 2020
Publisher: Agenda Publishing

The increasing influence of the government on the economy has sparked a multitude of studies aimed at determining the optimal size of government and its potential relationship with economic growth, productivity, and inflation. In his book, Václav Rybácek delves into the methodologies employed by these studies, which often underestimate the actual size of government, leading to erroneous economic policy recommendations and an unrealistic assessment of a government's ability to manage its debts. The book highlights the shortcomings of macroeconomic statistics in keeping pace with the expansion of government, resulting in misallocation of public producers, such as those in the financial services sector, to the corporate sector. Even central banks, responsible for implementing government policies, are found to fall outside official estimates of the government's size. Furthermore, the choice of denominator, such as GDP, when measuring the relative size of government, can further underestimate its actual magnitude.

Drawing on Austrian economic theory, particularly in the realm of market operations, the book presents a more robust methodology for measuring government. This methodology is then applied to recalculate fiscal indicators and GDP, providing a more accurate set of data for analyzing public sector dynamics in the majority of EU countries. By adopting a more comprehensive approach, the book aims to rectify the misrepresentation of government size and provide a more accurate basis for economic policy discussions and analysis.

Weight: 466g
Dimension: 237 x 171 x 22 (mm)
ISBN-13: 9781788210102