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WARFARE AND WELFARE? Understanding 19th and 20th Century Central Government Spending

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  • Eloranta, Jari

    (Department of Economics, University of Warwick)

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    Abstract

    This paper evaluates theories aiming to explain the size and growth of government spending, develops a framework inclusive of the so-called guns vs. butter tradeoff effect, and offers insights especially for the period 1870-1938. There were differences between the excessive and responsive government explanations, and between the long-run and short-run explanations, as well as cross-section and time series approaches. Here central government spending, conditioned by the regime characteristics, is proposed to be analyzed on the basis of the demand characteristics of military spending and social spending, their interaction, public debt constraints, as well as institutional constraints and other environmental variables.

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    File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/workingpapers/2008/twerp699.pdf
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    Bibliographic Info

    Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 699.

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    Length: 34 pages
    Date of creation: 2004
    Date of revision:
    Handle: RePEc:wrk:warwec:699

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    Web page: http://www2.warwick.ac.uk/fac/soc/economics/
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    1. Barro, Robert J. & Sala-i-Martin, Xavier, 1992. "Public Finance in Models of Economic Growth," CEPR Discussion Papers 630, C.E.P.R. Discussion Papers.
    2. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
    3. Peter Lindert, 2003. "Voice and Growth: Was Churchill Right?," Working Papers 26, University of California, Davis, Department of Economics.
    4. Barr, Nicholas, 1992. "Economic Theory and the Welfare State: A Survey and Interpretation," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 741-803, June.
    5. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
    6. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, October.
    7. Mueller, Dennis C, 1976. "Public Choice: A Survey," Journal of Economic Literature, American Economic Association, vol. 14(2), pages 395-433, June.
    8. Martin C. McGuire & Mancur Olson Jr., 1996. "The Economics of Autocracy and Majority Rule: The Invisible Hand and the Use of Force," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 72-96, March.
    9. Timothy Hatton & Jeffery Williamson, 2002. "What Fundamentals Drive World Migration?," CEPR Discussion Papers 458, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    10. Brennan, Geoffrey & Pincus, Jonathan J, 1983. "Government Expenditure Growth and Resource Allocation: The Nebulous Connection," Oxford Economic Papers, Oxford University Press, vol. 35(3), pages 351-65, November.
    11. Liebowitz, S J & Margolis, Stephen E, 1990. "The Fable of the Keys," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 1-25, April.
    12. Peter Lindert, 2004. "Social Spending and Economic Growth," Challenge, M.E. Sharpe, Inc., vol. 47(4), pages 6-16, July.
    13. Blejer, Mario I & Cheasty, Adrienne, 1991. "The Measurement of Fiscal Deficits: Analytical and Methodological Issues," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1644-78, December.
    14. Albert Breton, 1989. "The Growth of Competitive Governments," Canadian Journal of Economics, Canadian Economics Association, vol. 22(4), pages 717-50, November.
    15. Nicholas Barr, 1992. "Economic theory and the welfare state : a survey and interpretation," LSE Research Online Documents on Economics 279, London School of Economics and Political Science, LSE Library.
    16. Singh, Balvir & Sahni, Balbir S, 1984. "Causality between Public Expenditure and National Income," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 630-44, November.
    17. Alan T. Peacock & Jack Wiseman, 1961. "The Growth of Public Expenditure in the United Kingdom," NBER Books, National Bureau of Economic Research, Inc, number peac61-1.
    18. Kormendi, Roger C, 1983. "Government Debt, Government Spending, and Private Sector Behavior," American Economic Review, American Economic Association, vol. 73(5), pages 994-1010, December.
    19. Lindert, Peter H., 1996. "What Limits Social Spending?," Explorations in Economic History, Elsevier, vol. 33(1), pages 1-34, January.
    20. Jeffrey G. Williamson, 2002. "Winners and Losers Over Two Centuries of Globalization," NBER Working Papers 9161, National Bureau of Economic Research, Inc.
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