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

Ismael Sanz and Francisco J. Vel·zquez ()
Authors registered in the RePEc Author Service: Francisco J. Velázquez ()

Public Choice, 2004, vol. 119, issue 1_2, 72 pages

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.

Date: 2004
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