The Demand for Current Public Expenditure in Fiji: Theory and Empirical Results
AbstractThe purpose of this paper is to analyse government expenditure in Iran using annual time series data for the period 1963-2000. Various theories of the size of government are reviewed and a distinction is made between economic/structural determinants and institutional determinants. Categorising the theories of government expenditure in this way suggests the application of non-nested tests as a mechanism whereby the relative importance of the two broad theoretical categories can be determined. The empirical results, indicating "double rejection", reveal that neither the economic/structural determinants nor the institutional determinants alone are sufficient to explain government expenditure in Iran. A comprehensive, incorporating explanatory variables from both models provides a robust explanation of the data. This paper presents the first empirical estimates of the own-price elasticity of the demand, and income elasticity of the demand, for current government expenditures in Iran.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 50391.
Date of creation: 2003
Date of revision:
Publication status: Published in The Middle East Business and Economic Review 2.15(2003): pp. 14-25
Government expenditure; Non-nested tests; Iran; Economic determinants; Institutional determinants.;
Other versions of this item:
- Doessel, Darrel & Valadkhani, Abbas, 2003. "The Demand for Current Public Expenditure in Fiji: Theory and Empirical Results," MPRA Paper 50392, University Library of Munich, Germany.
- H4 - Public Economics - - Publicly Provided Goods
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