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Procyclical government spending: Patterns of pressure and prudence in the OECD

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  • Abbott, Andrew
  • Jones, Philip

Abstract

This paper tests for differences in the cyclicality of government spending across functional categories. Evidence from 20 OECD countries suggests that procyclicality is more likely in smaller functional budgets, but capital spending is more likely to be procyclical for the larger spending categories.

Suggested Citation

  • Abbott, Andrew & Jones, Philip, 2011. "Procyclical government spending: Patterns of pressure and prudence in the OECD," Economics Letters, Elsevier, vol. 111(3), pages 230-232, June.
    • Handle: RePEc:eee:ecolet:v:111:y:2011:i:3:p:230-232
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    2. Irena Szarowská, 2011. "Relationship between government spending and economic growth in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(7), pages 415-422.
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    5. Pellens, Maikel & Peters, Bettina & Hud, Martin & Rammer, Christian & Licht, Georg, 2018. "Public investment in R&D in reaction to economic crises: A longitudinal study for OECD countries," ZEW Discussion Papers 18-005, ZEW - Leibniz Centre for European Economic Research.
    6. Teresa Famulska & Jan Kaczmarzyk & Malgorzata Grzaba, 2021. "The Relationship between the Structure of Tax Revenues and the Structure of Public Expenditure in the Member States of the European Union," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 165-185.
    7. Abel Fran �ois & Raul Magni-Berton, 2015. "Partisan and bureaucratic changes in public education spending. French empirical evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 22(18), pages 1435-1438, December.
    8. Irena Szarowská, 2012. "Public spending and Wagner's law in Central and Eastern European countries," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(2), pages 383-390.
    9. Szarowska Irena, 2013. "Relationship between government expenditure and output in the problematic regions in the European Union," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 4 (36), pages 190-199.
    10. Szarowska, Irena, 2011. "Development and the cyclicality of government spending in the Czech Republic," MPRA Paper 32353, University Library of Munich, Germany.
    11. Hud, Martin & Hussinger, Katrin, 2015. "The impact of R&D subsidies during the crisis," Research Policy, Elsevier, vol. 44(10), pages 1844-1855.
    12. Abbott, Andrew & Jones, Philip, 2014. "‘Leaning Against an Open Door’: Ideology and the cyclicality of public expenditure," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 957-969.
    13. Papageorgiou, Theofanis & Michaelides, Panayotis G. & Tsionas, Efthymios G., 2016. "Business cycle determinants and fiscal policy: A Panel ARDL approach for EMU," The Journal of Economic Asymmetries, Elsevier, vol. 13(C), pages 57-68.
    14. Andrew Abbott & Philip Jones, 2021. "The cyclicality of government foreign-aid expenditure: voter awareness in “good” times and in “bad”," Public Choice, Springer, vol. 186(1), pages 97-117, January.
    15. Andrew Abbott & Philip Jones, 2014. "Pressures to Increase Public Expenditure and Patterns of Procyclical Expenditure," Economic Issues Journal Articles, Economic Issues, vol. 19(2), pages 39-54, September.
    16. Abbott, Andrew & Jones, Philip, 2012. "Budget deficits and social protection: Cyclical government expenditure in the OECD," Economics Letters, Elsevier, vol. 117(3), pages 909-911.
    17. Navarat Temsumrit, 2020. "Does Democracy Affect Cyclical Fiscal Policy? Evidence From Developing Countries," PIER Discussion Papers 125, Puey Ungphakorn Institute for Economic Research.
    18. Abbott, Andrew & Jones, Philip, 2021. "Government response to increased demand for public services: The cyclicality of government health expenditures in the OECD," European Journal of Political Economy, Elsevier, vol. 68(C).
    19. Makkonen, Teemu, 2013. "Government science and technology budgets in times of crisis," Research Policy, Elsevier, vol. 42(3), pages 817-822.
    20. Eckehard Rosenbaum & Biagio Ciuffo, 2017. "Sustainability via Intergenerational Transfers in a Stock-Flow-Consistent Model," Metroeconomica, Wiley Blackwell, vol. 68(1), pages 147-184, February.
    21. Andrew Abbott & Philip Jones, 2013. "Procyclical government spending: a public choice analysis," Public Choice, Springer, vol. 154(3), pages 243-258, March.
    22. Irena Szarowská, 2016. "Quality of Public Finance and Economic Growth in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(4), pages 1373-1381.
    23. Liang, Li-Lin & Tussing, A. Dale, 2019. "The cyclicality of government health expenditure and its effects on population health," Health Policy, Elsevier, vol. 123(1), pages 96-103.

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