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Government spending: Is development assistance harmonised with other budgets?

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  • Abbott, Andrew
  • Jones, Philip
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    Abstract

    This paper explores the way governments rely on budgets. Budgets are classified with reference to functions (e.g. defence, education, etc.), but expenditure from one budget (e.g. the overseas budget) can prove as effective as expenditure from another budget (e.g. the environment budget) when pursuing a specific policy goal. Are donor countries internalising spillovers by harmonising overseas aid spending with other budgetary expenditures? An empirical analysis of OECD countries (between 1990 and 2005) suggests that they rely systematically on a preferred portfolio of budgets.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0161893812000695
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Policy Modeling.

    Volume (Year): 34 (2012)
    Issue (Month): 6 ()
    Pages: 921-931

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    Handle: RePEc:eee:jpolmo:v:34:y:2012:i:6:p:921-931

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    Web page: http://www.elsevier.com/locate/inca/505735

    Related research

    Keywords: Budget; Defence; Education; Health; Environment;

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    References

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    1. Mosley, Paul, 1985. "The Political Economy of Foreign Aid: A Model of the Market for a Public Good," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 373-93, January.
    2. Clist, Paul, 2011. "25Years of Aid Allocation Practice: Whither Selectivity?," World Development, Elsevier, vol. 39(10), pages 1724-1734.
    3. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
    4. Jones, Philip R, 1996. " Rents from In-Kind Subsidy: "Charity" in the Public Sector," Public Choice, Springer, vol. 86(3-4), pages 359-78, March.
    5. Shelton, Cameron A., 2007. "The size and composition of government expenditure," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2230-2260, December.
    6. P. B. Anand, 2004. "Financing the Provision of Global Public Goods," The World Economy, Wiley Blackwell, vol. 27(2), pages 215-237, 02.
    7. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
    8. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
    9. Todd Sandler & Daniel G. Arce, 2007. "New face of development assistance: public goods and changing ethics," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(4), pages 527-544.
    10. Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, October.
    11. Cameron A. Shelton, 2007. "The Size and Composition of Government Expenditure," Wesleyan Economics Working Papers 2007-002, Wesleyan University, Department of Economics.
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