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The Composition of Public Expenditure and Economic Growth: Can Anything be Learned from Swiss Data?


  • Raju Jan Singh
  • Rene Weber


Using time-series tests, the paper provides evidence that fiscal spending can influence long-run growth. Data on six functional categories of public spending (education, health care, social welfare, transport, justice and national defense) over the period 1950 to 1994 are examined for Switzerland. Permanent growth effects are found only for two expenditure categories: education (positive) and health care (negative). In addition, higher spending on transport infrastructure and on defense appear to exert a temporary influence.

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  • Raju Jan Singh & Rene Weber, 1997. "The Composition of Public Expenditure and Economic Growth: Can Anything be Learned from Swiss Data?," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 133(III), pages 617-634, September.
  • Handle: RePEc:ses:arsjes:1997-iii-17

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    References listed on IDEAS

    1. Baltensperger, Ernst, 1982. "Reserve Requirements and Economic Stability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 14(2), pages 205-215, May.
    2. William Poole, 1969. "Optimal choice of monetary policy instruments in a simple stochastic macro model," Special Studies Papers 2, Board of Governors of the Federal Reserve System (U.S.).
    3. Kevin Clinton, 1997. "Implementation of Monetary Policy in a Regime with Zero Reserve Requirements," Staff Working Papers 97-8, Bank of Canada.
    4. William Poole, 1970. "Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model," The Quarterly Journal of Economics, Oxford University Press, vol. 84(2), pages 197-216.
    5. Joshua N. Feinman, 1993. "Reserve requirements: history, current practice, and potential reform," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jun, pages 569-589.
    6. Horrigan, Brian R., 1988. "Are reserve requirements relevant for economic stabilization?," Journal of Monetary Economics, Elsevier, vol. 21(1), pages 97-105, January.
    7. Gordon H. Sellon & Stuart E. Weiner, 1997. "Monetary policy without reserve requirements : case studies and options for the United States," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 5-30.
    8. Siegel, Jeremy J, 1981. "Bank Reserves and Financial Stability," Journal of Finance, American Finance Association, vol. 36(5), pages 1073-1084, December.
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    Cited by:

    1. Peter Nijkamp & Jacques Poot, Victoria, 2002. "Meta-Analysis of the Impact of Fiscal Policies on Long-Run Growth," Tinbergen Institute Discussion Papers 02-028/3, Tinbergen Institute, revised 23 Apr 2003.
    2. Christoph Schaltegger & Benno Torgler, 2006. "Growth effects of public expenditure on the state and local level: evidence from a sample of rich governments," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1181-1192.
    3. World Bank, 2000. "Guatemala : Expenditure Reform in a Post-Conflict Country," World Bank Other Operational Studies 15481, The World Bank.
    4. Reserve Bank of India RBI, 2016. "State Finances: A Study of Budgets of 2015-16," Working Papers id:10561, eSocialSciences.
    5. Nijkamp, Peter & Poot, Jacques, 2004. "Meta-analysis of the effect of fiscal policies on long-run growth," European Journal of Political Economy, Elsevier, vol. 20(1), pages 91-124, March.
    6. repec:eee:ecmode:v:64:y:2017:i:c:p:270-287 is not listed on IDEAS
    7. Awaworyi Churchill, Sefa & Yew, Siew Ling & Ugur, Mehmet, 2015. "Effects of Government Education and Health Expenditures on Economic Growth: A Meta-analysis," EconStor Preprints 110901, ZBW - German National Library of Economics.
    8. W. Robert Reed & Nurul Sidek, 2013. "A Replication of "Meta-Analysis of the Effect of Fiscal Policies on Long-Run Growth" (European Journal of Political Economy, 2004)," Working Papers in Economics 13/33, University of Canterbury, Department of Economics and Finance.
    9. World Bank, 2009. "Seychelles - Public Expenditure Review," World Bank Other Operational Studies 3089, The World Bank.
    10. Celal Kucuker, 2003. "Türkiye Ýktisat Kongresi Büyüme Stratejileri Çalýþma Grubu," Working Papers 2003/5, Turkish Economic Association.

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