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The economics and empirics of the allocation of public consumption expenditures

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  • George TRIDIMAS

Abstract

The paper investigates the allocation of public consumption expenditures in the UK. After reviewing the empirical literature on the demand for public services, which is based on applied consumer analysis, it discusses the budgetary making process in the UK. It proceeds by estimating a system of demand equations for general government consumption expenditures in the UK during the period 1963-96. In addition to estimating the effects of relative prices, total expenditure and demographic variables, it finds that the constraints of homogeneity and symmetry cannot be rejected.

Suggested Citation

  • 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.
    • Handle: RePEc:mil:wpdepa:2006-02
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    References listed on IDEAS

    as
    1. Pitarakis, Jean-Yves & Tridimas, George, 1999. "Total expenditure endogeneity in a system of demand for public consumption expenditures in the UK," Economic Modelling, Elsevier, vol. 16(2), pages 279-291, April.
    2. Dunne, J. P. & Smith, R. P., 1983. "The allocative efficiency of government expenditure: Some comparative tests," European Economic Review, Elsevier, vol. 20(1-3), pages 381-394, January.
    3. Dunne, John Paul & Pashardes, Panos & Smith, Ronald P, 1984. "Needs, Costs and Bureaucracy: The Allocation of Public Consumption in the UK," Economic Journal, Royal Economic Society, vol. 94(373), pages 1-15, March.
    4. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    5. Romer, Thomas & Rosenthal, Howard, 1979. "The elusive median voter," Journal of Public Economics, Elsevier, vol. 12(2), pages 143-170, October.
    6. Deacon, Robert T, 1978. "A Demand Model for the Local Public Sector," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 184-192, May.
    7. McMillan, Melville L & Amoako-Tuffour, Joe, 1988. "An Examination of Preferences for Local Public Sector Outputs," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 45-54, February.
    8. Tridimas, George & Winer, Stanley L., 2005. "The political economy of government size," European Journal of Political Economy, Elsevier, vol. 21(3), pages 643-666, September.
    9. Tridimas, George, 2001. "The Economics and Politics of the Structure of Public Expenditure," Public Choice, Springer, vol. 106(3-4), pages 299-316, March.
    10. M. I. Ansari & D. V. Gordon & C. Akuamoah, 1997. "Keynes versus Wagner: public expenditure and national income for three African countries," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 543-550.
    11. Peter C. Coyte & Stuart Landon, 1990. "Cost-Sharing versus Block-Funding in a Federal System: A Demand Systems Approach," Canadian Journal of Economics, Canadian Economics Association, vol. 23(4), pages 817-838, November.
    12. Hettich,Walter & Winer,Stanley L., 2005. "Democratic Choice and Taxation," Cambridge Books, Cambridge University Press, number 9780521021807, November.
    13. Jean-Yves Pitarakis & George Tridimas, 1998. "The allocation of public consumption expenditure in the UK," Applied Economics Letters, Taylor & Francis Journals, vol. 5(3), pages 197-200.
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    Keywords

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    JEL classification:

    • H0 - Public Economics - - General
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H4 - Public Economics - - Publicly Provided Goods
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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