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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. 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.
    2. 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.
    3. 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, October.
    4. 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.
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    6. Lindert, Peter H., 2003. "Voice and Growth: Was Churchill Right?," The Journal of Economic History, Cambridge University Press, vol. 63(02), pages 315-350, June.
    7. 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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    9. 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.
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    11. 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.
    12. 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.
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    14. Sala-I-Martin, X. & Barro, R.J., 1991. "Public Finance in Models of Economic Growth," Papers 640, Yale - Economic Growth Center.
    15. 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.
    16. Albert Breton, 1989. "The Growth of Competitive Governments," Canadian Journal of Economics, Canadian Economics Association, vol. 22(4), pages 717-50, November.
    17. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, April.
    18. 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.
    19. 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.
    20. Peter Lindert, 2004. "Social Spending and Economic Growth," Challenge, M.E. Sharpe, Inc., vol. 47(4), pages 6-16, July.
    21. 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.
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