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

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Author Info
Eloranta, Jari (Department of Economics, University of Warwick)
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/publications/twerp699.pdf
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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
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Handle: RePEc:wrk:warwec:699

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  5. 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. [Downloadable!]
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  6. 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. [Downloadable!] (restricted)
  7. Peter Lindert, 2004. "Social Spending and Economic Growth," Challenge, M.E. Sharpe, Inc., vol. 47(4), pages 6-16, July. [Downloadable!] (restricted)
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  12. 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. [Downloadable!] (restricted)
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