How Government Size Optimization affect on European Economies?

Abstract

The issue of optimal size of the general government sector is analyzed by researchers using various methods, most often through the prism of a specific goal. The article is an attempt to determine the optimal size of the general government sector from the perspective of EU economies. To achieve this goal, the innovative decision tree technique-the c5.0 method was used. The study covered data describing 28 EU member states in the years 2000-2017 and 16,632 input data were analyzed. The results of the conducted research showed that despite the fact that there is no single optimal and universal solution, a series of dependencies can be observed. Knowing the impact of individual actions on the economy, you can choose such instruments, as well as such a configuration that will help in a given area without harming others. Thus, the technique used, combined with specific priorities in terms of impact on the economy, may show which values of specific variables in the general government sector level should be pursued in order to model the desired effect.