The evolution and convergence of the government expenditure composition in the OECD countries: an analysis of the functional distribution

Ismael Sanz and Francisco J. Velazquez (javel@ccee.ucm.es)

No 9, European Economy Group Working Papers from European Economy Group

Abstract: This paper explores the existence of convergence in the structure of government expenditure by functions in the OECD countries for the period 1970-1998 and the prospects of this process persisting in the future. The results obtained first through the similarity index and afterwards using the usual convergence indicators, adapted to the analysis of the breakdown of public expenditure, point to the existence of a distribution approximation. Nevertheless, we have found that the majority of expenditures were near to the steady-state, which differs across countries. This suggests that there are some individual factors that impede convergence to a single structure in the long run.

Pages: 28 pages
Date: 2001
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Working Paper: The evolution and convergence of the government expenditure composition in the OECD countries: an analysis of the functional distribution (2001)
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