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The Productivity of Government Spending in Asia: 1983–2000

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  • Jonathan Leightner

Abstract

Leightner [The Changing Effectiveness of Key Policy Tools in Thailand. Institute of Southeast Asian Studies for East Asian Development Network, EAON Working Paper 19(2002)x0219-6417] develops a new analytical technique, named “Reiterative Truncated Projected Least Squares” (RTPLS), which produces 1/2 the error of OLS when omitted variables interact with the included independent variable. In this paper, RTPLS is applied to annual panel data on government spending and GDP from 1983 to 2000 for 23 developing Asian and Pacific countries. RTPLS produces estimates for the government spending multiplier for these countries and shows how omitted variables have affected these multipliers across countries and over time. Copyright Springer Science+Business Media, Inc. 2005

Suggested Citation

  • Jonathan Leightner, 2005. "The Productivity of Government Spending in Asia: 1983–2000," Journal of Productivity Analysis, Springer, vol. 23(1), pages 33-46, January.
    • Handle: RePEc:kap:jproda:v:23:y:2005:i:1:p:33-46
    DOI: 10.1007/s11123-004-8546-0
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    References listed on IDEAS

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    1. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    3. Leightner, Jonathan E., 1999. "Weather-induced changes in the tradeoff between SO2 and NOx at large power plants," Energy Economics, Elsevier, vol. 21(3), pages 239-259, June.
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    1. Jonathan E. Leightner, 2010. "How China's Holdings of Foreign Reserves Affect the Value of the US Dollar in Europe and Asia," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(3), pages 24-39, May.
    2. Jonathan Leightner, 2011. "Fiscal stimulus for the USA in the current financial crisis: what does 1930-2008 tell us?," Applied Economics Letters, Taylor & Francis Journals, vol. 18(6), pages 539-549.
    3. Leightner, Jonathan E. & Inoue, Tomoo, 2008. "Capturing climate's effect on pollution abatement with an improved solution to the omitted variables problem," European Journal of Operational Research, Elsevier, vol. 191(2), pages 540-557, December.
    4. Jonathan E. Leightner, 2018. "Empirical Estimates for how Changes in China¡¯s Foreign Reserves Are Hurting Chinese Exports and Helping US Exports," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 9(2), pages 55-63, April.
    5. Leightner, Jonathan E. & Inoue, Tomoo, 2007. "Tackling the omitted variables problem without the strong assumptions of proxies," European Journal of Operational Research, Elsevier, vol. 178(3), pages 819-840, May.

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