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The evolution and convergence of the government expenditure composition in the OECD countries: an analysis of the functional distribution

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Ismael Sanz
Francisco J. Velazquez

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Abstract

This paper explores the existence of convergence in the structure of government expenditure by functions in the OECD countries for the period 1970-1998 and the prospects of this process persisting in the future. The results obtained first through the similarity index and afterwards using the usual convergence indicators, adapted to the analysis of the breakdown of public expenditure, point to the existence of a distribution approximation. Nevertheless, we have found that the majority of expenditures were near to the steady-state, which differs across countries. This suggests that there are some individual factors that impede convergence to a single structure in the long run.

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Paper provided by European Economy Group in its series European Economy Group Working Papers with number 9.

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Length: 28 pages
Date of creation: 2001
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Handle: RePEc:eeg:euroeg:9

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Postal: Despacho 104.Pabelloon de Segundo, Facultad de Economicas. Universidad Complutense de Madrid. 28223 Pozuelo de Alarcon, Madrid
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Postal: Despacho 104.Pabelloon de Segundo, Facultad de Economicas. Universidad Complutense de Madrid. 28223 Pozuelo de Alarcon, Madrid
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  1. repec:fth:coluec:754 is not listed on IDEAS
  2. Massimo Florio, 2001. "On Cross-country Comparability of Government Statistics: public expenditure trends in OECD National Accounts," International Review of Applied Economics, Taylor and Francis Journals, vol. 15(2), pages 181-198, April. [Downloadable!] (restricted)
  3. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S103-26, October. [Downloadable!] (restricted)
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  4. Kneller, Richard & Bleaney, Michael F. & Gemmell, Norman, 1999. "Fiscal policy and growth: evidence from OECD countries," Journal of Public Economics, Elsevier, vol. 74(2), pages 171-190, November. [Downloadable!] (restricted)
  5. ?gel de la Fuente, . "Convergence Across Countries And Regions: Theory And Empirics," UFAE and IAE Working Papers 447.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
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  6. Robert J. Barro & Xavier Sala-i-Martin, 1990. "Economic Growth and Convergence across The United States," NBER Working Papers 3419, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April. [Downloadable!] (restricted)
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  8. Alberto Alesina & Roberto Perotti & José Tavares, 1998. "The Political Economy of Fiscal Adjustments," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1998-1), pages 197-266. [Downloadable!]
  9. Boyle, G E & McCarthy, T G, 1999. "Simple Measures of Convergence in Per Capita GDP: A Note on Some Further International Evidence," Applied Economics Letters, Taylor and Francis Journals, vol. 6(6), pages 343-47, June. [Downloadable!] (restricted)
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  10. Agell, J. & Lindh, T. & Ohlsson, H., 1999. "Growth and the Public Sector: a Reply," Papers 1999:1, Uppsala - Working Paper Series.
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  11. Boyle, G E & McCarthy, T G, 1997. "A Simple Measure of Beta-Convergence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 257-64, May.
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  12. Agell, Jonas & Lindh, Thomas & Ohlsson, Henry, 1997. "Growth and the public sector: A critical review essay," European Journal of Political Economy, Elsevier, vol. 13(1), pages 33-52, February. [Downloadable!] (restricted)
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  13. Devarajan, Shantayanan & Swaroop, Vinaya & Heng-fu, Zou, 1996. "The composition of public expenditure and economic growth," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 313-344, April. [Downloadable!] (restricted)
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  2. Jaime Turrion & Carmela Martin, 2003. "Eastern Enlargement of the European Union and Foreign Direct Investment Adjustments," European Economy Group Working Papers 24, European Economy Group. [Downloadable!]
  3. Norman Gemmell & Richard Kneller, 2003. "Fiscal Policy, Growth and Convergence in Europe," Treasury Working Paper Series 03/14, New Zealand Treasury. [Downloadable!]
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  4. Jorge Crespo & Carmela Martin & Francisco Javier Velázquez, 2002. "International technology diffusion through imports and its impact on economic growth," European Economy Group Working Papers 12, European Economy Group. [Downloadable!]
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