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Government Spending, Rights, and Civil Liberties

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  • International Monetary Fund

Abstract

Government spending plays a critical role in protecting and enforcing rights and civil liberties. Empirical evidence for a sample of industrial and developing countries shows that government expenditures on defense, law and order, social security, education, and health care are associated with three rights indicators—property rights, equality of citizens before the law, and economic freedom. In particular, an increase in spending on law and order seems to improve the indicators of rights and civil liberties, and lower budget deficits seem to improve property rights and equality before the law. Of great importance is the finding that corruption is associated with worse rights indicators.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 00/205.

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Length: 26
Date of creation: 01 Dec 2000
Date of revision:
Handle: RePEc:imf:imfwpa:00/205

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Keywords: Government expenditures; Economic models; government spending; statistics; equation; budget balance; budget constraint; heteroscedasticity; government budget; equations; government budget constraint; statistical significance; estimation of equation; statistic; budget deficits; expenditure programs; descriptive statistics; correlation; correlations; confidence intervals; public spending; survey; cross-country variation; increase in expenditures; fiscal decentralization; hypothesis testing; statistical correlation; fiscal variables; public expenditures; government agencies; government budget constraints; public finance; defense spending; fiscal affairs department; fiscal affairs; budget imbalances; instrumental variables; standard deviation; sensitivity analysis; fiscal policy; linear restriction; budget constraints; parameter estimate;

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  1. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
  2. Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 1998. "Regulatory Discretion and the Unofficial Economy," American Economic Review, American Economic Association, vol. 88(2), pages 387-92, May.
  3. Alberto Alesina & Reza Baqir & William Easterly, 1997. "Public Goods and Ethnic Divisions," NBER Working Papers 6009, National Bureau of Economic Research, Inc.
  4. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, . "The Quality of Government," Working Paper 19452, Harvard University OpenScholar.
  5. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
  6. Isham, Jonathan & Kaufmann, Daniel & Pritchett, Lant H, 1997. "Civil Liberties, Democracy, and the Performance of Government Projects," World Bank Economic Review, World Bank Group, vol. 11(2), pages 219-42, May.
  7. Luiz R. De Mello Jr., 2004. "Can Fiscal Decentralization Strengthen Social Capital?," Public Finance Review, , vol. 32(1), pages 4-35, January.
  8. International Monetary Fund, 2001. "Fiscal Decentralization and Governance," IMF Working Papers 01/71, International Monetary Fund.
  9. 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.
  10. Fox, Jonathan, 1996. "How does civil society thicken? the political construction of social capital in rural Mexico," World Development, Elsevier, vol. 24(6), pages 1089-1103, June.
  11. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
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Cited by:
  1. Vatcharin Sirimaneetham, 2006. "What drives liberal policies in developing countries?," Bristol Economics Discussion Papers 06/587, Department of Economics, University of Bristol, UK.
  2. Muethel, Miriam & Hoegl, Martin, 2010. "Cultural and societal influences on shared leadership in globally dispersed teams," Journal of International Management, Elsevier, vol. 16(3), pages 234-246, September.
  3. Jorge Martinez-Vazquez & Baoyun Qiao & Li Zhang, 2007. "The Role of Provincial Policies in Fiscal Equalization Outcomes in China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0705, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

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