Arbeitspapier

Does Size Matter? The Productivity of Government: Expenditures and the Size of States: Evidence from India

Some politicians argue for the splitting and combining of states to increase government productivity, but there is a dearth of empirical evidence on the optimal size of a state. Using data from Indian states, I test a model of the optimal size of the state. I find that size and preference heterogeneity do not significantly affect the productivity of a state government. However, when states are split up, the productivity of the root state's government is negatively affected. This suggests that there may be a readjustment phase after state reorganisation that brings about this negative effect. It is important to consider this effect when redrawing state borders.

Sprache
Englisch

Erschienen in
Series: GIGA Working Papers ; No. 285

Klassifikation
Wirtschaft
Structure, Scope, and Performance of Government
Publicly Provided Goods: General
National Government Expenditures and Related Policies: General
State and Local Budget and Expenditures
Intergovernmental Relations; Federalism; Secession
Thema
India
fiscal federalism
government quality
ethnic heterogeneity
state reorganization

Ereignis
Geistige Schöpfung
(wer)
Haasnoot, Cornelis W.
Ereignis
Veröffentlichung
(wer)
German Institute of Global and Area Studies (GIGA)
(wo)
Hamburg
(wann)
2016

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Haasnoot, Cornelis W.
  • German Institute of Global and Area Studies (GIGA)

Entstanden

  • 2016

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