Publication

This paper addresses the government's role in the national economy and the related costs and benefits, focusing on Mexico. It defines what public goods and services are, identifies causes for different productivities in the public and private sectors and outlines how government interventions affect economic development, commenting on the way institutions stimulate rent- and profit-seeking activities. Subsequently, the author estimates government intervention indices for Mexico and explores the statistical relationship between the size of government and the rate of economic growth in this country.