A Note On the Public Choice Approach To the Growth in Government Expenditure

Jack Diamond
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Jack Diamond: International Monetary Fund

Public Finance Review, 1989, vol. 17, issue 4, 445-461

Abstract: This article applies an empirical model, based on the economic theory of public choice, to the Group of Seven countries. It is discovered: (1) that deficit financing does appear to contribute to increased real government spending; (2) that the demand for government services as a whole does not appear to be income elastic; (3) that there is some evidence of a productivity lag in the government sectors of Canada, Japan, and the United States, but not in those of France, Italy, or the United Kingdom; and (4) that in most countries there is some evidence of economies of scale in the provision of government services.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:17:y:1989:i:4:p:445-461

DOI: 10.1177/109114218901700406

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