Public spending

François Facchini

Chapter 94 in Elgar Encyclopedia of Public Choice, 2025, pp 674-680 from Edward Elgar Publishing

Abstract: In the spending ratio, the share of private goods financed from private funds (political spending) is larger than the share of public goods (Samuelson). Political spending breaks Say's law because it can be consumed with no productive counterpart. The exception made to Say's law explains why voters always demand more spending, why politicians use public expenditure to constitute a political clientele, and why the legislature uses the constitution to limit the growth of these expenses. It also explains the negative impact of public spending on economic growth via overconsumption, malconsumption, and inactivity effects.

Keywords: Public good; Tax; Say’s Law; Constitution; Interest Group; Rent (search for similar items in EconPapers)
Date: 2025
ISBN: 9781802207743
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