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Original Articles

Decentralization and public sector growth

Pages 281-285 | Received 24 Jan 1996, Published online: 02 Nov 2006
 

Abstract

This paper uses a pooled Canadian data set to test for the causes of government growth. Unlike previous studies, these causes are tested simultaneously to avoid misspecification problems. The decentralization of government activities is found to lower the relative size of the public sector when power moves from the federal to the provincial or local governments but raises it when the power shifts from provincial to local governments.

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