Abstract

Statistical measurement of government has become, along with the growing extent of government interventionism, one of the main challenges for statisticians. Higgs has dealt with some aspects of how the size of government is commonly expressed (Higgs, 1991; Higgs, 2015). Aim of this paper is to add some relevant facts of the methodological nature leading to the underestimation of government in official statistics. We consider this issue essential even though rather ignored in the mainstream literature. As it is illustrated in the text, the size of government is apt to be underestimated in the macroeconomic statistics due a number of issues - the immeasurability of several interventions, lacking information and the inappropriate treatment of market mechanism in the currently methodology.

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