Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Demand for Current Public Expenditure in Fiji: Theory and Empirical Results

Contents:

Author Info

  • Doessel, Darrel
  • Valadkhani, Abbas

Abstract

This paper analyses current government expenditure in Fiji using annual time series data for the period 1969-1999. Alternative theories of government expenditure are reviewed and a distinction is made between economic/apolitical determinants and institutional/political determinants. Categorising the literature in this way suggests the application of non-nested tests in empirical work, which is reported elsewhere. All non-nested tests lead to the conclusion of double rejection. Therefore, a parsimonious comprehensive model, encompassing both economic and institutional variables, is preferred as it passes all diagnostic tests and exhibits no sign of misspecification. The Engle-Granger two-step procedure has been applied to analyse both long- and short-run determinants of public expenditure. The paper presents the first empirical estimates of the own-price elasticity of demand and income elasticity of demand for current public expenditure in Fiji.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://mpra.ub.uni-muenchen.de/50392/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 50392.

as in new window
Length:
Date of creation: 2003
Date of revision:
Publication status: Published in Pacific Economic Bulletin 1.18(2003): pp. 54-66
Handle: RePEc:pra:mprapa:50392

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Fiji; Government public expenditures;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 65, pages 135.
  2. Kenneth Rogoff, 1987. "Equilibrium Political Budget Cycles," NBER Working Papers 2428, National Bureau of Economic Research, Inc.
  3. Valadkhani, Abbas, 2001. "An Analysis of Iran’s Third Five-Year Development Plan in the Post-Revolution Era (2000-2005)," MPRA Paper 50386, University Library of Munich, Germany.
  4. Nordhaus, William D, 1975. "The Political Business Cycle," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 42(2), pages 169-90, April.
  5. Gemmell, Norman, 1990. "Wagner's Law, Relative Prices and the Size of the Public Sector," The Manchester School of Economic & Social Studies, University of Manchester, University of Manchester, vol. 58(4), pages 361-77, December.
  6. Wagner, Richard E & Weber, Warren E, 1975. "Competition, Monopoly, and the Organization of Government in Metropolitan Areas," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 18(3), pages 661-84, December.
  7. Dennis Mueller & Peter Murrell, 1986. "Interest groups and the size of government," Public Choice, Springer, Springer, vol. 48(2), pages 125-145, January.
  8. Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, American Economic Association, vol. 63(3), pages 280-96, June.
  9. Stigler, George J, 1970. "Director's Law of Public Income Redistribution," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 13(1), pages 1-10, April.
  10. Buchanan, James M. & Wagner, Richard E., 1978. "Dialogues concerning fiscal religion," Journal of Monetary Economics, Elsevier, Elsevier, vol. 4(3), pages 627-636, August.
  11. Abbas Valadkhani, 1998. "Effect of government capital expenditure on GDP in the Iranian economy using superexogeneity testing," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 5(6), pages 361-364.
  12. Pesaran, M H & Deaton, Angus S, 1978. "Testing Non-Nested Nonlinear Regression Models," Econometrica, Econometric Society, Econometric Society, vol. 46(3), pages 677-94, May.
  13. D.P. Doessel & Abbas Valadkhani, 2002. "Public Finance and The Size of Government: A Literature Review and Econometric Results for Fiji," School of Economics and Finance Discussion Papers and Working Papers Series, School of Economics and Finance, Queensland University of Technology 108, School of Economics and Finance, Queensland University of Technology.
  14. Marlow, Michael L & Orzechowski, William, 1996. " Public Sector Unions and Public Spending," Public Choice, Springer, Springer, vol. 89(1-2), pages 1-16, October.
  15. Borcherding, Thomas E., 1985. "The causes of government expenditure growth: A survey of the U.S. evidence," Journal of Public Economics, Elsevier, Elsevier, vol. 28(3), pages 359-382, December.
  16. Pesaran, H., 1995. "Planning and Macroeconomic Stabilization in Iran," Cambridge Working Papers in Economics, Faculty of Economics, University of Cambridge 9508, Faculty of Economics, University of Cambridge.
  17. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, American Economic Association, vol. 62(5), pages 891-901, December.
  18. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, Econometric Society, vol. 55(2), pages 251-76, March.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:50392. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.