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The Economics and Politics of the Structure of Public Expenditure

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  • Tridimas, George

Abstract

The paper derives a complete system of demand equations for public consumption expenditures as the outcome of rational behaviour in a model where government maximizes expected electoral support. The allocation of expenditures is found to depend not only on the prices of public services and total expenditure and to satisfy the constraints of demand theory, which have been the focus of attention of previous empirical studies of the allocation of public expenditures, but, in addition, on the prices of private consumption goods, the distribution of voter incomes and the expected change in voter support from varying the levels of public provision. Copyright 2001 by Kluwer Academic Publishers

Suggested Citation

  • Tridimas, George, 2001. "The Economics and Politics of the Structure of Public Expenditure," Public Choice, Springer, vol. 106(3-4), pages 299-316, March.
  • Handle: RePEc:kap:pubcho:v:106:y:2001:i:3-4:p:299-316
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    References listed on IDEAS

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      • McAfee, R. Preston & McMillan, John., 1990. "Bidding Rings," Working Papers 726, California Institute of Technology, Division of the Humanities and Social Sciences.
    8. Sen, Amartya, 1994. "The Formulation of Rational Choice," American Economic Review, American Economic Association, vol. 84(2), pages 385-390, May.
    9. McKelvey, Richard D., 1976. "Intransitivities in multidimensional voting models and some implications for agenda control," Journal of Economic Theory, Elsevier, vol. 12(3), pages 472-482, June.
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    Cited by:

    1. Creedy, John & Li, Shuyun May & Moslehi, Solmaz, 2010. "Inequality Aversion And The Optimal Composition Of Government Expenditure," Macroeconomic Dynamics, Cambridge University Press, vol. 14(S2), pages 290-306, November.
    2. Aparajita Goyal & John Nash, 2017. "Reaping Richer Returns," World Bank Publications, The World Bank, number 25996.
    3. Creedy, John & Moslehi, Solmaz, 2009. "Modelling the composition of government expenditure in democracies," European Journal of Political Economy, Elsevier, vol. 25(1), pages 42-55, March.
    4. Niklas Potrafke, 2011. "Does government ideology influence budget composition? Empirical evidence from OECD countries," Economics of Governance, Springer, vol. 12(2), pages 101-134, June.
    5. repec:ebl:ecbull:v:8:y:2007:i:4:p:1-7 is not listed on IDEAS
    6. John Creedy & Shuyun May Li & Solmaz Moslehi, 2008. "The Composition of Government Expenditure in an Overlapping Generations Model," Department of Economics - Working Papers Series 1043, The University of Melbourne.
    7. John Creedy & Solmaz Moslehi, 2014. "The composition of government expenditure with alternative choicemechanisms," New Zealand Economic Papers, Taylor & Francis Journals, vol. 48(1), pages 53-71, April.
    8. Dimitrios Sideris, 2007. "Wagner's Law in 19th Century Greece: A Cointegration and Causality Analysis," Working Papers 64, Bank of Greece.
    9. Massimo Florio & Sara Colautti, 2005. "A logistic growth theory of public expenditures: A study of five countries over 100 years," Public Choice, Springer, vol. 122(3), pages 355-393, March.
    10. Ismael Sanz & Francisco Javier Velázquez, 2002. "Determinants of the Composition of Government Expenditure by Functions," European Economy Group Working Papers 13, European Economy Group.
    11. Sanz, Ismael & Velazquez, Francisco J, 2003. "What do OECD countries cut first at a time of fiscal adjustments? A dynamic panel data approach," University of California at Santa Barbara, Economics Working Paper Series qt4j744960, Department of Economics, UC Santa Barbara.
    12. John Creedy & Solamz Moslehi, 2010. "The optimal composition of government expenditure among transfers, education and public goods," Hacienda Pública Española, IEF, vol. 194(3), pages 41-64, June.
    13. John Creedy & Solmaz Moslehi, 2008. "Voting over Taxes and Expenditure: The Role of Home Production," Department of Economics - Working Papers Series 1052, The University of Melbourne.
    14. George TRIDIMAS, 2006. "The economics and empirics of the allocation of public consumption expenditures," Departmental Working Papers 2006-02, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    15. Julian Ramajo & Javier Salinas & Francisco Pedraja & Miguel Márquez, 2007. "Competition in the allocation of public spending: a new model to analyse the interaction between expenditure categories," Economics Bulletin, AccessEcon, vol. 8(4), pages 1-7.

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