Showing papers on "Negative relationship published in 1986"
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TL;DR: In this paper, government expenditure, revenue raising, and regulation have been examined in the context of economic growth, and a negative relationship between the share of government consumption expenditure in GDP and the growth of per capita GDP for a cross section of 96 LDCs and developed countries over various time periods between 1961 and 1976.
Abstract: Adam Smith founded modern economics with a powerful argument that free markets are the best route to prosperity and economic growth. His conclusion has been studied and debated by economists ever since, including Nobel Prize winners Friedman, Hayek, Kuznets, Lewis, Myrdal, and Schultz. Whatever economists have concluded, since World War II the majority of the less developed countries seem to have opted for extensive government regulation of the private sector and for a large public sector. Has the large government role slowed or accelerated the growth of LDCs? Obviously, this is an important issue. This study looks at government expenditure, revenue raising, and regulation. Greater emphasis is put on expenditure because (1) the revenue raised is presumably a function of the level of expenditure, and (2) there are few internationally comparable measures of regulation. There are virtually no empirical studies of the general impact of government on economic growth. An extensive literature search turned up only three papers. Gemmell analyzed the impact of nonmarket sector growth on various measures of macroeconomic performance for 27 LDCs and developed countries for 1960 and 1970. He drew no general conclusions about the relation between the size of the nonmarket sector and economic growth.' Marsden found a negative relation between tax/GDP ratios and economic growth for a cross section of 20 LDCs and developed countries for the 1970-79 period.2 I found a negative relationship between the share of government consumption expenditure in GDP and the growth of per capita GDP for a cross section of 96 LDCs and developed countries over various time periods between 1961 and 1976.3 This paper extends the approach used in my 1983 article.
499 citations
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TL;DR: For example, this article showed that the percentage of the population voting, which is closely related to the proportion of voters with incomes below the median, consistently has a positive and significant impact on the size of government.
Abstract: The results of the previous section, estimates of a three equation model from 23 observations, must obviously be regarded as tentative. The consistent positive relationship between number of interest groups and size of government observed with changing sets of included independent variables, changing samples of nations, and treating the number of interest groups as either exogenous or codetermined, does imply rather unequivocally that interest groups are able to influence public policies in such a manner as to lead to increased government size. Beyond helping to reinforce this conclusion, the results of the previous section should be regarded as first steps in the development of a model of the polity that can explain participation in the political process by interest groups and citizens as well as the size of government. The two most important variables explaining government size other than the number of interest groups proved to be population and the percentage of the population voting. The consistently negative relationship between relative government size and population is noteworthy since several recent papers have assumed that the only government output is redistribution. The negative relationship, implying that an increase in population leads to a less than proportionate increase in the size of government, shows that government expenditure exhibits a most basic public good characteristic. The percentage of the population voting, which probably is closely related to the proportion of voters with incomes below the median, consistently has a positive and significant impact on the size of government. The Meltzer-Richard hypothesis that greater participation by low income voters leads to more redistribution and greater government size is strongly supported. The inclusion of both the interest group and voter participation variables in the government size equation relies on theories related to redistributive activities. The voter participation variable posits a direct responsiveness of government outcomes to voter preferences through the operation of the median voter theorem, and implies rich-to-poor redistribution. The interest group theory posits increasing government size through the addition to the public weal of expenditures on goods with disproportionate benefits for certain interest groups. Such expenditures have distributional implications since in the absence of government provision the interest groups would either go without the goods or have to provide them themselves. While the theory makes no explicit prediction about the direction of this redistributional flow, since the largest single category of interest groups in most countries by far is industry trade associations, one might expect poor-to-rich redistribution as the most likely consequence of interest group influence. Thus, the possibility exists that the influence of the two variables on the distribution of income might be largely offsetting, while their influence on the size of government is cumulative. Disaggregating the effects of these and other public choice variables is a promising avenue for future research.
246 citations
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TL;DR: This article examined the relationship between product market competition and employment discrimination using an especially constructed data set that links microeconomic data on female employment with measures of market concentration in the banking industry and found that individual market shares are unrelated to female employment, suggesting that the relationship is due primarily to differences across markets rather than individual firms.
Abstract: This paper examines the relationship between product market competition and employment discrimination using an especially constructed data set that links microeconomic data on female employment with measures of market concentration in the banking industry. The use of firm-specific data drawn from this one industry allows estimation of this relationship in a manner that avoids the problems of interindustry differences that have troubled previous studies. The results provide strong support for a negative relationship between market concentration and the relative employment of women. Further, we find that individual market shares are unrelated to female employment, suggesting that the relationship is due primarily to differences across markets rather than individual firms.
172 citations
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TL;DR: In this article, the relationship between growth and defense spending in developing countries is examined. But, the authors do not consider the impact of the borrowing capacity of each country on defense spending.
Abstract: This study reexamines the relationship between growth and defense spending in developing countries. It differs from previous studies as it recognizes differences in the borrowing capacity of each country. We hypothesize that a negative relationship will exist between defense and economic growth in countries which are financially resource constrained, and a positive relationship will exist in countries which are relatively resource unconstrained. A factor and discriminate analysis are used to group countries. The variables chosen for the factor analysis depict a country's external debt, structural condition, growth, and balance of payments position. Regression equations were estimated for the total sample and each group, with the growth in Gross Domestic Product as the dependent variable. The results confirm the hypothesized positive relationship between defense and growth in the unconstrained group, but was not confirmed for the constrained group. The results suggest the importance of variables such as fo...
129 citations
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TL;DR: In this paper, the effects of the Fed's October 6th, 1979 change in monetary policy regime on the profitability and risk of commercial banks were examined using capital market data and an event study methodology.
74 citations
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TL;DR: Poverty of speech, affective flattening and avolition ‐apathy were found to be related with poor outcome, and there was also a negative relationship between improvement and certain frequently occurring negative sym‐toms.
Abstract: Negative symptoms have been assessed in 34 cases of major endogenous depression (RDC) using the Scale for Assessment of Negative Symptoms. Correlation coefficients between negative symptoms and improvement rated on a 5-point scale were determined. Poverty of speech, affective flattening and avolition-apathy were found to be related with poor outcome. There was also a negative relationship between improvement and certain frequently occurring negative symptoms: inability to feel emotions, feelings of emptiness in thinking and feeling of avolition. High total negative symptom scores predicted poor outcome.
28 citations
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TL;DR: In this paper, the negative relationship between inflation and stock returns is analyzed with real returns in seven industries from 1968:4 to 1982:1, and the results support the spurious-correlation hypothesis.
21 citations
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TL;DR: The authors examined whether the restaurant food expenditure patterns of two-earner Canadian households are consistent with a hypothesis that restaurant meals are convenience rather than luxury items and found a positive relationship between the proportion of total food expenditures allocated to discretionary restaurant meals and the wage rates (value of time) of both the household head and spouse and a negative relationship between proportionate restaurant food expenditures and unearned income.
Abstract: This study examines whether the restaurant food expenditure patterns of two-earner Canadian households are consistent with a hypothesis that restaurant meals are convenience rather than luxury items. Results of the study indicate a positive relationship between the proportion of total food expenditures allocated to discretionary restaurant meals and the wage rates (value of time) of both the household head und spouse and a negative relationship between proportionate restaurant food expenditures and unearned income. Both results support the hypothesis. The study also examines relationships between proportionate restaurant food expenditures and a set of household characteristics variables.
8 citations
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TL;DR: In this article, the authors extended the work of de Leeuw and Holloway in two important dimensions: (1) they attempted to replicate their results both for the aggregate capital stock and for the major disaggregated capital stock components using their original statistical methodology.
Abstract: In the current controversy over the economic effects of federal debt, a conventional and widely held view is that an increase in federal debt adversely affects the capital stock. The alternative and more recent view that is increasingly attracting attention is that increases in federal debt do not generate adverse capital stock effects.' The resolution of this important controversy depends heavily upon the empirical evidence pertaining to the realtionship between these two variables. Unfortunately, the evidence accumulated thus far is quite meager. The recent and important study of this relationship by de Leeuw and Holloway (1985) is therefore quite timely and merits careful consideration. The "reduced-forrn" of de Leeuw and Holloway's model suggests "that the debt/income ratio has an unambiguous negative relationship to the capital/output ratio" (p 337) 2 de Leeuw and Holloway's analysis employs annual observations of a new measure of the cyclically adjusted U.S. federal debt and presents "regression results (which) confirrn a strong negative relationship" (p. 240) between this federal debt measure and the aggregate capital stock for the period 1955-1983. Our analysis extends the work of de Leeuw and Holloway in two important dimensions. First, we attempt to replicate de Leeuw and Holloway's results both for the aggregate capital stock and for the major disaggregated capital stock components using their original statistical methodology. While our results generally reconfirm de
6 citations