In the light of models of composition of government expenditure and economic growth and the growing globalization process, we infer that countries should tend to a similar structure of government spending over time. In fact, using Tukey box-plots and σ-convergence we show evidence of an approaching process in the composition of government expenditures in OECD countries for the period 1970--1997. We also identify by means of cluster analysis that most countries are converging towards two different models: one including twelve European and non-European countries and the other composed solely of eight countries of the European Union.
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Article provided by Springer in its journal Public Choice.
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