Constituency Size and the Growth of Public Expenditures: The Case of the United Kingdom

Abstract

The growth of government has long been a core issue of public economics with a vast array of hypotheses offered and empirical investigations conducted. One key element of this quest, with respect to democratic governments, has been the size of the legislature which is seen increasing, decreasing, or neutral with respect to the growth of government. We argue that the inconclusive empirical results are the result of a misspecification and that instead of legislature size, it is constituency size that matters and that the larger the constituency size, the more government grows because of poorer representation. We test this hypothesis using the case of the United Kingdom over the 20th century and find that constituency size is positively related to the growth of government.