A Noteon the Public Choice Approach to the Growth in Government Expenditure

International Monetary Fund

No 1988/093, IMF Working Papers from International Monetary Fund

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

Keywords: WP; government service; Group of Seven country; government productivity; estimation equation; expenditure growth; spending process; Civil service; Total expenditures; Public sector; Income (search for similar items in EconPapers)
Pages: 25
Date: 1988-01-01
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1988/093

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