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Fiscal Policies in Highly Unequal Societies: Implications for Agricultural Growth

  • Lopez, Ramon E.

The paper discusses the economic effects of misallocation of public expenditures in favor of private goods rather than public goods. It first lays out certain key hypotheses regarding the consequences of the apparent public sector allocation inefficiency and the factors that explain this phenomenon. It then discusses existing empirical evidence that lends at least indirect support to these hypotheses. Finally, it presents new empirical evidence for the rural sector in Latin America which documents the extent of the misallocation of public expenditures, its consequences for agricultural growth and rural poverty, and the role of certain key politico-institutional factors in explaining the misallocation.

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File URL: http://purl.umn.edu/112595
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Article provided by Food and Agriculture Organization, Agricultural and Development Economics Division in its journal eJADE: electronic Journal of Agricultural and Development Economics.

Volume (Year): 04 (2007)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:ags:ejadef:112595
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  1. Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
  2. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
  3. Bergström, Fredrik, 1998. "Capital Subsidies and the Performance of Firms," SSE/EFI Working Paper Series in Economics and Finance 285, Stockholm School of Economics.
  4. Chu, K.-y. & Davoodi, H. & Gupta, S., 2000. "Income Distribution and Tax, and Government Social Spending Policies in Developing Countries," Research Paper 214, World Institute for Development Economics Research.
  5. Lee, Jong-Wha, 1996. " Government Interventions and Productivity Growth," Journal of Economic Growth, Springer, vol. 1(3), pages 391-414, September.
  6. Barbara Fakin, 1995. "Investment Subsidies during Transition," Eastern European Economics, M.E. Sharpe, Inc., vol. 33(5), pages 62-74, October.
  7. Allcott, Hunt & Lederman, Daniel & Lopez, Ramon, 2006. "Political institutions, inequality, and agricultural growth : the public expenditure connection," Policy Research Working Paper Series 3902, The World Bank.
  8. Ke-young Chu & Hamid Reza Davoodi & Sanjeev Gupta, 2000. "Income Distribution and Tax and Government Social Spending Policies in Developing Countries," IMF Working Papers 00/62, International Monetary Fund.
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