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Public Spending Patterns: the regional allocation of public investment in Greece by political period

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  • Yannis Psycharis
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    Abstract

    The spatial dispersion of public investment constitutes one of the principal elements and also one of the key issues concerning a country’s strategic regional development. Public investment expenditure represents in part the ‘social wage’ citizens receive, while at the same time it generates external economies for the productive sectors of the economy. Using a dataset that includes total outlays by all central, regional and local authorities, this paper traces the distribution of public investment in Greek prefectures (NUTS 3) over the period 1976-2005. It seeks to highlight the spending pattern governments of that period had followed, to compare the changes (if any) between different periods, and to explain whether redistribution of national wealth or other factors, including political ones, could be contributing to explaining the pattern and its temporal changes.

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    Bibliographic Info

    Paper provided by Hellenic Observatory, LSE in its series GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe with number 14.

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    Date of creation: May 2008
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    Handle: RePEc:hel:greese:14

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    Keywords: Public investment; regional analysis; territorial public expenditure.;

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    References

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    1. Anderson, Gary M & Tollison, Robert D, 1991. "Congressional Influence and Patterns of New Deal Spending, 1933-1939," Journal of Law and Economics, University of Chicago Press, vol. 34(1), pages 161-75, April.
    2. James M. Buchanan, 1949. "The Pure Theory of Government Finance: A Suggested Approach," Journal of Political Economy, University of Chicago Press, vol. 57, pages 496.
    3. David A. Aschauer, 1989. "Public investment and productivity growth in the Group of Seven," Economic Perspectives, Federal Reserve Bank of Chicago, issue Sep, pages 17-25.
    4. Ross Mackay & Jonathan Williams, 2005. "Thinking about need: Public spending on the regions," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 815-828.
    5. Matthew Lambrinidis & Yannis Psycharis & Antonis Rovolis, 2005. "Regional allocation of public infrastructure investment: The case of Greece," Regional Studies, Taylor & Francis Journals, vol. 39(9), pages 1231-1244.
    6. David Heald & John Short, 2002. "The Regional Dimension of Public Expenditure in England," Regional Studies, Taylor & Francis Journals, vol. 36(7), pages 743-755.
    7. A. D. Scott, 1952. "Federal Grants and Resource Allocation," Journal of Political Economy, University of Chicago Press, vol. 60, pages 534.
    8. James M. Buchanan, 1952. "Federal Grants and Resource Allocation," Journal of Political Economy, University of Chicago Press, vol. 60, pages 208.
    9. R. Ross Mackay, 2001. "Regional Taxing and Spending: The Search for Balance," Regional Studies, Taylor & Francis Journals, vol. 35(6), pages 563-575.
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    Cited by:
    1. Christos Lyrintzis, 2011. "Greek politics in the era of economic crisis: reassessing causes and effects," LSE Research Online Documents on Economics 33826, London School of Economics and Political Science, LSE Library.
    2. Stelios Karagiannis & Yannis Panagopoulos & Prodromos Vlamis, 2010. "Symmetric or Asymmetric Interest Rate Adjustments? Evidence from Greece, Bulgaria and Slovenia," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 39, Hellenic Observatory, LSE.
    3. Theodore Pelagidis, 2010. "The Greek paradox of falling competitiveness and weak institutions in a high GDP growth rate context (1995-2008)," LSE Research Online Documents on Economics 29098, London School of Economics and Political Science, LSE Library.
    4. Vassilis Monastiriotis & Jacob A. Jordaan, 2011. "Regional Distribution and Spatial Impact of FDI in Greece: evidence from firm-level data," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 44, Hellenic Observatory, LSE.
    5. Christos Dimas, 2010. "Privatization in the name of ‘Europe’: analyzing the telecoms privatization in Greece from a ‘discursive institutionalist’ perspective," LSE Research Online Documents on Economics 31089, London School of Economics and Political Science, LSE Library.
    6. Nicholas Apergis, 2011. "Characteristics of inflation in Greece: mean spillover effects among CPI components," LSE Research Online Documents on Economics 32597, London School of Economics and Political Science, LSE Library.
    7. George Pagoulatos & Nikolaos Zahariadis, 2011. "Politics, labor, regulation, and performance: lessons from the privatization of OTE," LSE Research Online Documents on Economics 33827, London School of Economics and Political Science, LSE Library.

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