Are government expenditures more cyclical the more they finance the provision of public goods?

Andrew Abbott and Philip Jones

Kyklos, 2024, vol. 77, issue 3, 574-592

Abstract: The “publicness” of services provided by governments can be gauged with reference to the extent to which services are “non‐rival in consumption.” Services that are more “rival in consumption” (e.g., education and medical care) are more likely to be “parceled out” between citizens. With greater personal experience, voters are more likely to be aware of private‐good benefits and therefore are far more likely to perceive these services as part of a personal “endowment.” In economic downturns, they attach priority to sustaining expenditures on more “private” services and vote‐maximizing governments respond by diverting expenditure from “more public” to “more private” services. Consequently, government expenditures are more cyclical the more they finance non‐rival services. Predictions are tested with reference to government expenditures in 28 OECD countries between 1997 and 2019.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/kykl.12378

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:kyklos:v:77:y:2024:i:3:p:574-592

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0023-5962

Access Statistics for this article

Kyklos is currently edited by Rene L. Frey

More articles in Kyklos from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().