Tax Rate and Government Expenditure.

In this paper we have presented a simple behavioural model of government decision-making with an empirical application to The Netherlands. The ultimate aim is a satisfactory positive theory of the behaviour of the government (organization) from a micro-economic point of view. In the approach a central role is allocated to the own interests of government sector workers (politicians and bureaucrats). The interests of other social groups will in practice to a greater or lesser extent -- but not automatically. [ABSTRACT FROM AUTHOR]