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The Evolution and Convergence of the Government Expenditure Composition in the OECD Countries

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  • Ismael Sanz
  • Francisco J. Vel·zquez

Abstract

In the light of models of composition of government expenditure and economic growth and the growing globalization process, we infer that countries should tend to a similar structure of government spending over time. In fact, using Tukey box-plots and σ-convergence we show evidence of an approaching process in the composition of government expenditures in OECD countries for the period 1970--1997. We also identify by means of cluster analysis that most countries are converging towards two different models: one including twelve European and non-European countries and the other composed solely of eight countries of the European Union.

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  • Ismael Sanz & Francisco J. Vel·zquez, 2004. "The Evolution and Convergence of the Government Expenditure Composition in the OECD Countries," Public Choice, Springer, vol. 119(1_2), pages 61-72, April.
    • Handle: RePEc:kap:pubcho:v:119:y:2004:i:1_2:p:61-72
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    Cited by:

    1. Salvatore Ercolano & Oriana Romano, 2018. "Spending for the Environment: General Government Expenditure Trends in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 1145-1169, August.
    2. Andrea Leiter & Engelbert Theurl, 2012. "The convergence of health care financing structures: empirical evidence from OECD-countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(1), pages 7-18, February.
    3. Norman Gemmell & Richard Kneller & Ismael Sanz, 2016. "Does the Composition of Government Expenditure Matter for Long-Run GDP Levels?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(4), pages 522-547, August.
    4. Ignacio Lago-Peñas & Santiago Lago-Peñas, "undated". "The Composition Of Public Spending And The Nationalization Of Party Systems In Western Europe," Working Papers 8-06 Classification-JEL :, Instituto de Estudios Fiscales.
    5. Paolo Liberati & Antonio Sciala, 2011. "How economic integration affects the vertical structure of the public sector," Economics of Governance, Springer, vol. 12(4), pages 385-402, December.
    6. De Simone, Elina & Gaeta, Giuseppe Lucio & Ercolano, Salvatore, 2010. "Exploring Convergence in some OECD Public Social Expenditure Trends," MPRA Paper 22496, University Library of Munich, Germany.
    7. Richard Kneller & Norman Gemmell, 2002. "Fiscal Policy, Growth and Convergence in Europe," European Economy Group Working Papers 14, European Economy Group.
    8. Tsai, I-Chun, 2018. "House price convergence in euro zone and non-euro zone countries," Economic Systems, Elsevier, vol. 42(2), pages 269-281.
    9. Lena Maleševic Perovic & Silvia Golem & Maja Mihaljevic Kosor, 2016. "Convergence in Government Spending Components in EU15: A Spatial Econometric Perspective," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(42), pages 240-240, May.
    10. Martín, Carmela & Mulas-Granados, Carlos & Sanz, Ismael, 2005. "Spatial distribution of R&D expenditure and patent applications across EU regions and its impact on economic cohesion," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 6, pages 41-61.
    11. James Alm & Trey Dronyk‐Trosper, 2021. "What drives road infrastructure spending?," Public Budgeting & Finance, Wiley Blackwell, vol. 41(4), pages 20-49, December.
    12. Elina De Simone & Giuseppe Lucio Gaeta & Salvatore Ercolano, 2012. "Exploring Public Social Expenditure Trends in the Globalization Era," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 23-42.
    13. Francesca Gastaldi & Paolo Liberati, 2011. "Economic integration and government size: a review of the empirical literature," Financial Theory and Practice, Institute of Public Finance, vol. 35(3), pages 327-384.
    14. Ismael Sanz & Francisco J. Velázquez, 2006. "Has European Economic Integration Affected The Functional Composition Of Government Expenditures?," Contemporary Economic Policy, Western Economic Association International, vol. 24(2), pages 300-315, April.
    15. Sedat Alataş & Erkam Sarı, 2021. "An Empirical Investigation on Regional Disparities in Public Expenditures: Province Level Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(1), pages 217-240, November.
    16. Arze del Granado, F. Javier & Martinez-Vazquez, Jorge & McNab, Robert M., 2012. "Decentralized Governance and Preferences for Public Goods," MPRA Paper 42459, University Library of Munich, Germany.
    17. Jesús Ferreiro & M. Teresa García-del-Valle & Carmen Gómez, 2013. "An Analysis of the Convergence of the Composition of Public Expenditures in European Union Countries," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(4), pages 799-825, October.
    18. Philipp Heimberger, 2017. "Österreichs Staatsausgabenstrukturen im europäischen Vergleich," wiiw Research Reports in German language 8, The Vienna Institute for International Economic Studies, wiiw.
    19. Li Yang Zi, 2016. "An Empirical Research on the Structure of Public Expenditure and Economic Growth¡ªEvidence from China," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(3), pages 85-96, March.
    20. Wang, David Han-Min, 2007. "Convergence tests on tax burden and economic growth among China, Taiwan and the OECD countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 380(C), pages 278-286.
    21. Paulo Reis Mourão, 2007. "Factores de alteração da composição da Despesa Pública: o caso norte-americano," Notas Económicas, Faculty of Economics, University of Coimbra, issue 26, pages 27-41, December.
    22. Genovaitė Liobikienė & Justina Mandravickaitė, 2013. "Convergence of new members of the EU: changes in household consumption expenditure structure regarding environmental impact during the prosperous period," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(2), pages 407-427, April.
    23. Francisca Guedes de Oliveira, 2016. "Government Size versus Government Efficiency in a Model of Economic Growth," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 4(2), pages 38-55.
    24. Norman Gemmell & Richard Kneller & Ismael Sanz, 2016. "Does the Composition of Government Expenditure Matter for Long-Run GDP Levels?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(4), pages 522-547, August.

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