Abrams, Burton A.; Wang, Siyan - Department of Economics, Lerner College of Business and … - 2007
The relationship between government size and the unemployment rate is investigated using an error-correction model that … describes both the short-run dynamics and long-run determination of the unemployment rate. Using data from twenty OECD countries … outlays as a percentage of GDP, plays a significant role in affecting the steady-state unemployment rate. Importantly, when …