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The Abrams curve of government size and unemployment: evidence from panel data

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This study investigates the long run relationship between government size and unemployment rate, the Abrams curve, using ten European countries over the period 1961–1999. To this end, panel cointegration analysis and estimation techniques appropriate for heterogeneous panels are made use of. The results support the idea that there is an Abrams curve, and the relation between government size and the unemployment rate is positive.

Document Type: Research Article


Affiliations: 1: Department of Economic and Regional Development, Panteion University, Leof. Syngrou 136, 17671 Athens, Greece 2: Department of International and European Economic Studies, Athens University of Economics and Business, Athens, Greece 3: Department of Economics, Athens University of Economics and Business, Athens, Greece

Publication date: June 10, 2005

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