The dynamics of displacement effect in government expenditure

Hyungon Kim

International Review of Public Administration, 2018, vol. 23, issue 2, 83-102

Abstract: This study examines the dynamics of the displacement effect. Using government expenditure data from 1972 to 2006, this study finds evidence of the displacement effect in government expenditures immediately following German reunification, along with changes in both the composition of government expenditures and funding allocation authority between local and federal governments. These findings suggest that social disturbances play a significant role in determining the functional composition of government spending and have the potential to reverse the trend of fiscal decentralization.

Date: 2018
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DOI: 10.1080/12294659.2018.1450610

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