Zilberman, Eduardo; Reis, Anna Dos - Society for Economic Dynamics - SED - 2013
employees, the government enhances the overall degree of insurance in the economy. In this paper, we introduce public employment … find that if the government relies on consumption taxes to balance its budget, the optimal size of public employment is … nearly flat, ranging from 10 to 24 percent of the workforce. However, if the public employment is reduced from 22 to 10 …