PUBLIC EXPENDITURE DYNAMICS IN SPAIN: A SIMPLIFIED MODEL OF ITS DETERMINANTS

Manuel Jaén-García () and Luis Palma Martos
Additional contact information
Luis Palma Martos: Universidad de Sevilla

Working Papers from Instituto de Estudios Fiscales

Abstract: . Public expenditure increase is explained by very diverse models. There are very simplified models, even though some have a strong theoretical background (e.g. Wagner's Law or the Displacement Effect), and others based on empirical rather than theoretical aspects. In an intermediate position, there are models of determinants of public expenditure from the demand and supply perspectives. In both cases we base our study on multivariant models that express public expenditure as a variable which depends on many factors. However, while demand models are strongly supported by the theory (model) of the median voter (Borcherding and Deacon, 1972 and Bergstrom and Goodman, 1973), supply models are based on a simple Cobb-Douglas equation. It would be highly interesting to synthesize both kinds of influence. However, the design of this model and its empirical contrast is most complex due to the high number of variables that should be included which would lead to serious problems of endogeneity and multicollinearity. Also, the existence of very limited statistical data would to lead an important lack of degrees of freedom.

References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ief.es/documentos/recursos/publicaciones/papeles_trabajo/2004_09.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.ief.es:443 (Bad file descriptor) (http://www.ief.es/documentos/recursos/publicaciones/papeles_trabajo/2004_09.pdf [302 Moved Temporarily]--> https://www.ief.es/documentos/recursos/publicaciones/papeles_trabajo/2004_09.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hpe:wpaper:y:2004:i:9

Access Statistics for this paper

More papers in Working Papers from Instituto de Estudios Fiscales Contact information at EDIRC.
Bibliographic data for series maintained by Miguel Gómez de Antonio ().