SELECTION AND ASSORTMENT OF THE VARIABLES DESCRIBING THE RELATIONSHIP BETWEEN THE ECONOMY AND THE GENE L GOVERNMENT SECTOR SIZE BY APPLICATION OF THE LEM2 ALGORITHM

Abstract

This paper reverses the relatively frequent examined interrelation that links an impact of the public sector (and within it the general government sector) on the economy of the analyzed countries. The article analyses whether the size of the general government sector is a function of the economy expressed through variables that were adopted for research. Realization of the research objective that was raised in this article focused on typing, grouping and selecting variables that describe respectively: the economy and the size of the sector. For identifying relationships between variables assigned to each group, the LEM2 algorithm was used. Rules that were generated by the application of this algorithm provided not only information about the relationships of individual variables, but also provided an indication of how frequently they occurred in relation to the examined pairs of variables describing the economy and the size of the general government sector. The subject of research was EU Member States (their economy and public fi nance systems) and the research period was set on the years 2000 to 2013 (inclusive).