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The Economics and Politics of the Structure of Public Expenditure

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  • Tridimas, George
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    Abstract

    The paper derives a complete system of demand equations for public consumption expenditures as the outcome of rational behaviour in a model where government maximizes expected electoral support. The allocation of expenditures is found to depend not only on the prices of public services and total expenditure and to satisfy the constraints of demand theory, which have been the focus of attention of previous empirical studies of the allocation of public expenditures, but, in addition, on the prices of private consumption goods, the distribution of voter incomes and the expected change in voter support from varying the levels of public provision. Copyright 2001 by Kluwer Academic Publishers

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    Bibliographic Info

    Article provided by Springer in its journal Public Choice.

    Volume (Year): 106 (2001)
    Issue (Month): 3-4 (March)
    Pages: 299-316

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    Handle: RePEc:kap:pubcho:v:106:y:2001:i:3-4:p:299-316

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    Web page: http://www.springerlink.com/link.asp?id=100332

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    Cited by:
    1. Massimo Florio & Sara Colautti, 2005. "A logistic growth theory of public expenditures: A study of five countries over 100 years," Public Choice, Springer, vol. 122(3), pages 355-393, March.
    2. George TRIDIMAS, 2006. "The economics and empirics of the allocation of public consumption expenditures," Departmental Working Papers 2006-02, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    3. John Creedy & Shuyun May Li & Solmaz Moslehi, 2009. "Inequality Aversion and the Optimal Composition of Government Expenditure," Department of Economics - Working Papers Series 1086, The University of Melbourne.
    4. Creedy, John & Moslehi, Solmaz, 2009. "Modelling the composition of government expenditure in democracies," European Journal of Political Economy, Elsevier, vol. 25(1), pages 42-55, March.
    5. John Creedy & Shuyun May Li & Solmaz Moslehi, 2008. "The Composition of Government Expenditure in an Overlapping Generations Model," Department of Economics - Working Papers Series 1043, The University of Melbourne.
    6. Niklas Potrafke, 2011. "Does government ideology influence budget composition? Empirical evidence from OECD countries," Economics of Governance, Springer, vol. 12(2), pages 101-134, June.
    7. repec:ebl:ecbull:v:8:y:2007:i:4:p:1-7 is not listed on IDEAS
    8. Creedy, John & Moslehi, Solmaz, 2012. "The Composition of Government Expenditure with Alternative Choice Mechanisms," Working Paper Series 2433, Victoria University of Wellington, Chair in Public Finance.
    9. Dimitrios Sideris, 2007. "Wagner's Law in 19th Century Greece: A Cointegration and Causality Analysis," Working Papers 64, Bank of Greece.
    10. Julian Ramajo & Javier Salinas & Francisco Pedraja & Miguel Márquez, 2007. "Competition in the allocation of public spending: a new model to analyse the interaction between expenditure categories," Economics Bulletin, AccessEcon, vol. 8(4), pages 1-7.
    11. John Creedy & Solamz Moslehi, 2010. "The optimal composition of government expenditure among transfers, education and public goods," Hacienda Pública Española, IEF, vol. 194(3), pages 41-64, June.
    12. Ismael Sanz & Francisco Javier Velázquez, 2002. "Determinants of the Composition of Government Expenditure by Functions," European Economy Group Working Papers 13, European Economy Group.
    13. John Creedy & Solmaz Moslehi, 2008. "Voting over Taxes and Expenditure: The Role of Home Production," Department of Economics - Working Papers Series 1052, The University of Melbourne.
    14. Sanz, Ismael & Velazquez, Francisco J, 2003. "What do OECD countries cut first at a time of fiscal adjustments? A dynamic panel data approach," University of California at Santa Barbara, Economics Working Paper Series qt4j744960, Department of Economics, UC Santa Barbara.

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