Abstract
Scully (Public Choice 115: 299–312, 2003) claims that for the United States in 1960–1990, the growth-maximizing size of the state was about 19% of GDP. However if an error in the model specification is corrected and if 2001 vintage data is used (instead of 1996 vintage data), estimates of the growth-maximizing size of the state range between 9% and 29% of GDP. Further, the method spuriously identifies a ‘growth maximizing tax rate’ even if no relationship exists between growth and the size of the state. The model cannot address reliably the question it attempts to answer.
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