The objective of this paper is to explain the growth of the state and local government sector since the early 1970s within a theoretical framework that both explicitly models the supply side of government services and allows for disequilibrium between desired demand and supply. The model is estimated using annual data from the National Income and Product Accounts for 1972-88. The paper is roganized as follows: review of the relevant literature (Section II); development of the theoretical model (Section III); and presentation of empirical results (Section IV).
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- Copyright 1990 Policy Research Center of the Andrew Young School of Policy Studies
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