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Showing 1 results for Armey Curve
Khosrow Piraee, Hayedeh Noroozi,
Volume 12, Issue 2 (7-2012)
Abstract
The Armey curve demonstrates a non linear relationship between government size and economic growth. This study used threshold regression approach in order to test the Armey curve relationship between government size and economic growth in Iran. Two sector production function proposed by Rati Ram (1986) and three indices of government size are used in this paper. The results reveal that a non linear relationship between all indices of government size and economic growth does not exist in Iran.