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The economics and empirics of the allocation of public consumption expenditures

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  • George TRIDIMAS

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    Abstract

    The paper investigates the allocation of public consumption expenditures in the UK. After reviewing the empirical literature on the demand for public services, which is based on applied consumer analysis, it discusses the budgetary making process in the UK. It proceeds by estimating a system of demand equations for general government consumption expenditures in the UK during the period 1963-96. In addition to estimating the effects of relative prices, total expenditure and demographic variables, it finds that the constraints of homogeneity and symmetry cannot be rejected.

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    File URL: http://wp.demm.unimi.it/tl_files/wp/2006/DEMM-2006_002wp.pdf
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    Bibliographic Info

    Paper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2006-02.

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    Date of creation: 01 Feb 2006
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    Handle: RePEc:mil:wpdepa:2006-02

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    Related research

    Keywords: Allocation of public consumption expenditure; Consumer demand systems; UK General Government consumption expenditure.;

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    1. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    2. Tridimas, George, 2001. " The Economics and Politics of the Structure of Public Expenditure," Public Choice, Springer, vol. 106(3-4), pages 299-316, March.
    3. Dunne, John Paul & Pashardes, Panos & Smith, Ronald P, 1984. "Needs, Costs and Bureaucracy: The Allocation of Public Consumption in the UK," Economic Journal, Royal Economic Society, vol. 94(373), pages 1-15, March.
    4. Jean-Yves Pitarakis & George Tridimas, 1998. "The allocation of public consumption expenditure in the UK," Applied Economics Letters, Taylor & Francis Journals, vol. 5(3), pages 197-200.
    5. Dunne, J. P. & Smith, R. P., 1983. "The allocative efficiency of government expenditure: Some comparative tests," European Economic Review, Elsevier, vol. 20(1-3), pages 381-394, January.
    6. Hettich,Walter & Winer,Stanley L., 2005. "Democratic Choice and Taxation," Cambridge Books, Cambridge University Press, number 9780521021807, November.
    7. Peter C. Coyte & Stuart Landon, 1990. "Cost-Sharing versus Block-Funding in a Federal System: A Demand Systems Approach," Canadian Journal of Economics, Canadian Economics Association, vol. 23(4), pages 817-38, November.
    8. Romer, Thomas & Rosenthal, Howard, 1979. "The elusive median voter," Journal of Public Economics, Elsevier, vol. 12(2), pages 143-170, October.
    9. Tridimas, George & Winer, Stanley L., 2005. "The political economy of government size," European Journal of Political Economy, Elsevier, vol. 21(3), pages 643-666, September.
    10. McMillan, Melville L & Amoako-Tuffour, Joe, 1988. "An Examination of Preferences for Local Public Sector Outputs," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 45-54, February.
    11. Deacon, Robert T, 1978. "A Demand Model for the Local Public Sector," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 184-92, May.
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