Selection of Relevant Variables Identify-Ing the Relationship Between the General Government Sector Size and the Economy

Abstract

The article is dedicated to research on relations between size of general government sector and the economy. The aim of this article is determination of the most important values that are used to identify relations between size of the sector and the economy, as well as determination of how frequently they appear in relation to pair of the variables that are being researched. In exploration of relations between the variables that describe size of general government sector and the economy, the authors used methodology that bases on Bayes networks. The object of the analyses was the economies of EU member states and their public finances systems. The period that was selected for the research has covered the years 2000-2013 (inclusive). In order to describe economies, the authors selected 18 variables, whereas to describe general government sector 15 variables. All variables were sourced from databases of Eurostat, OECD and World Bank. Among economy's measures and general government sector's measures, there were also some benchmarks found as standard ones (classical ones) as well as measures proposed by the authors, which were not used in the scientific descriptions that were dedicated to researches on sizes of general government sector. Ipso facto, this article fits in the discussion on, general government sector and optimization of its size, and at the same time it provides starting point for further research on sector's size and its influence on economy.

Application of Probabilistic Inference in Defining Impact of the General Government Sector’s Size on the Economy and Determining the Size of the Sector by the Economy in the EU

“…More and more often the authors prove bipolarity of dependencies on the line: the size of the sectorthe economy. Results of Skica, Rodzinka and Mroczek (2016) confirm both the impact of the size of the general government sector on the economy and the impact of the economy on the size of the general government sector (Skica, Rodzinka, Mroczek, 2015a;Skica, Rodzinka, Fryc, 2015b). This way, the certain stereotype that is available in the literature is being broken down to stress a simple, Teresa Mroczek, Tomasz Skica, Jacek Rodzinka Application of probabilistic inference in defining impact of the general government sector's size on the economy and determining the size of the sector by the economy in the EU www.e-finanse.com University of Information Technology and Management in Rzeszów 3 "e-Finanse" 2018, vol.…”

“…In our previous research (Skica et al, 2016) the learning models in form of Bayesian networks were generated for each year separately. Consequently, it could lead to the dispersion of information hidden in the data.…”

“…The collected data has been prepared for analysis: incompleteness and noise have been eliminated and discretization and integration have been performed. More details about the preprocessing data is available in Skica et al (2016).…”

“…Our previous research on the determination the relationships between the economy and the general government sector size (Skica et al, 2015a) and on the identification of the relationship between the general government sector size and the economy (Skica et al, 2016), were based on a qualitative component belief network analysis, i.e. a network structure.…”