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Public-sector organizations and the dynamics of public cash: evidence from data on public transactions

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  • Peter Grajzl, Barbara Mörec

Abstract

We investigate interlinkages among public-sector organizations by studying the dynamics of public cash. Analyzing a comprehensive database of public-cash transactions in Slovenia, we construct weekly time series of cash sums disbursed by direct budget users (DBU), indirect budget users (IBU), and government-controlled private-law entities (GCPLE). Remarkably, the main originators of public-cash transactions are GCPLE. Using vector-autoregression, we find that cash transactions of each public-sector segment are self-perpetuating but, interestingly, covary to a limited extent. DBU transactions temporarily elevate, while GCPLE transactions permanently crowd out, IBU transactions. Shocks in DBU and IBU transactions drive GCPLE transactions during specific subperiods. Our paper offers a new empirical lens for understanding public-sector activity.

Suggested Citation

  • Peter Grajzl, Barbara Mörec, 2025. "Public-sector organizations and the dynamics of public cash: evidence from data on public transactions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 22(2), pages 217-242, December.
    • Handle: RePEc:liu:liucej:v:22:y:2025:i:2:p:217-242
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    Keywords

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    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H89 - Public Economics - - Miscellaneous Issues - - - Other
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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