Pressures to increase public expenditure and patterns of procyclical expenditure

Abbott, Andrew James and Jones, Philip (2014) Pressures to increase public expenditure and patterns of procyclical expenditure. Economic Issues, 19 (2). pp. 37-51.

Full text not available from this repository.

Abstract

This paper draws on the literature that explains why governments spend procyclically, to predict the pattern of cyclical expenditure across government budgets. Procyclical expenditure increases at a faster rate than income in economic upturns and falls at a faster rate in recessions. The more politicians indulge pressures to increase expenditure in an economic upturn, the more they find it difficult to sustain expenditure in a recession. In this paper, differences in politicians' willingness to increase expenditure in an economic upturn are relevant when predicting patterns of cyclical expenditure across budgets. Predictions are tested with reference to expenditures from government budgets in 23 OECD countries (over the period 1995-2006). Central government capital expenditure and sub-central government expenditure are systematically more procyclical than expenditures from other budgets.

Item Type:
Journal Article
Journal or Publication Title:
Economic Issues
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000/2002
Subjects:
?? economics and econometricsh50h60discipline-based research ??
Departments:
ID Code:
140546
Deposited By:
Deposited On:
21 Jan 2020 09:55
Refereed?:
Yes
Published?:
Published
Last Modified:
15 Jul 2024 20:19