Consolidated democracy and size of the State
Brazilian Journal of Political Economy, Vol. 34 No. 1 (2014), Jan-Mar / 2014, Pages 61-71
Common sense suggests that the more consolidated democracies and advanced economies tend to be more efficient and produce smaller states. What is observed in practice, however, is a positive correlation between "democratic consolidation" and "tax burden" (as a proxy for "size of government"). This finding, while not expressing any causal relationship between the two variables, is an evidence that a more republican and democratic State, as defined in Bresser-Pereira, must be able to provide, effectively and efficiently, broader public services with better quality. This is, in consolidated democracies, the State should not be small.
JEL Classification: H10; H11; O43.
Keywords: democratic consolidation nation-state economic development capitalist revolution politics size of Government tax burden