Public Expenditure And Growth

Author : Santiago Herrera
Publisher : World Bank Publications
Page : 68 pages
File Size : 55,7 Mb
Release : 2007
Category : Access to Finance
ISBN : 8210379456XXX

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public expenditure and growth by Santiago Herrera Pdf

Abstract: Given that public spending will have a positive impact on GDP if the benefits exceed the marginal cost of public funds, the present paper deals with measuring costs and benefits of public spending. The paper discusses one cost seldom considered in the literature and in policy debates, namely, the volatility derived from additional public spending. The paper identifies a relationship between public spending volatility and consumption volatility, which implies a direct welfare loss to society. This loss is substantial in developing countries, estimated at 8 percent of consumption. If welfare losses due to volatility are this sizeable, then measuring the benefits of public spending is critical. Gauging benefits based on macro aggregate data requires three caveats: a) considering of the impact of the funding (taxation) required for the additional public spending; b) differentiating between investment and capital formation; c) allowing for heterogeneous response of output to different types of capital and differences in network development. It is essential to go beyond country-specificity to project-level evaluation of the benefits and costs of public projects. From the micro viewpoint, the rate of return of a project must exceed the marginal cost of public funds, determined by tax levels and structure. Credible evaluations require microeconomic evidence and careful specification of counterfactuals. On this, the impact evaluation literature and methods play a critical role. From individual project evaluation, the analyst must contemplate the general equilibrium impacts. In general, the paper advocates for project evaluation as a central piece of any development platform. By increasing the efficiency of public spending, the government can permanently increase the rate of productivity growth and, hence, affect the growth rate of GDP.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 56 pages
File Size : 41,7 Mb
Release : 2005-04-04
Category : Business & Economics
ISBN : 9781557755414

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Unproductive Public Expenditures by International Monetary Fund Pdf

Public expenditure policy, together with efforts to raise revenue,is at the core of efficient and equitable adjustment. Public expenditureproductivity has critical implications for fiscal adjustment, particularly as the competition for limited public resources intensifies.By providing a framework for defining and analyzing public expenditureproductivity and unproductive expenditures, this pamphlet discusseshow economic policymakers may approach these issues.

Author : Ludger Schuknecht
Publisher : Cambridge University Press
Page : 305 pages
File Size : 49,6 Mb
Release : 2020-11-12
Category : Business & Economics
ISBN : 9781108496230

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Public Spending and the Role of the State by Ludger Schuknecht Pdf

Up-to-date, holistic and comprehensive discussion of public expenditure, its history, value for money, risks and remedies.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 30 pages
File Size : 51,6 Mb
Release : 1989-05-15
Category : Business & Economics
ISBN : 9781451974157

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Government Expenditure and Economic Growth by International Monetary Fund Pdf

This paper examines the empirical evidence on the contribution that government and, in particular, capital expenditure make to the growth performance of a sample of developing countries. Using the Denison growth accounting approach, this study finds that social expenditures may have a significant impact on growth in the short run, but infrastructure expenditures may have little influence. While current expenditures for directly productive purposes may exert a positive influence, capital expenditure in these sectors appears to exert a negative influence. Experiments with other explanatory variables confirm the importance of the growth of exports to the overall growth rate.

Author : ALAN. PEACOCK,Jack Wiseman
Publisher : Routledge
Page : 0 pages
File Size : 44,8 Mb
Release : 2024-09-02
Category : Business & Economics
ISBN : 1032822015

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The Growth of Public Expenditure in the United Kingdom by ALAN. PEACOCK,Jack Wiseman Pdf

Originally published in 1961, this book became widely used as a textbook, as an important source of primary data on British government expenditure statistics and as the point of departure for further empirical and analytical studies of the behaviour of governments. The book was recognised as one of the formative influences in the development of a positive theory of government expenditure which sought to explain the size and structure of the system of public finance rather than justify it.

Author : Alan Peacock,Jack Wiseman
Publisher : Taylor & Francis
Page : 258 pages
File Size : 55,9 Mb
Release : 2024-09-02
Category : Business & Economics
ISBN : 9781040101483

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The Growth of Public Expenditure in the United Kingdom by Alan Peacock,Jack Wiseman Pdf

Originally published in 1961, this book became widely used as a textbook, as an important source of primary data on British government expenditure statistics and as the point of departure for further empirical and analytical studies of the behaviour of governments. The book was recognised as one of the formative influences in the development of a positive theory of government expenditure which sought to explain the size and structure of the system of public finance rather than justify it

Author : Henry J. Bruton,Catharine Hill,Arup Banerji
Publisher : World Bank Publications
Page : 182 pages
File Size : 49,5 Mb
Release : 1996-01-01
Category : Business & Economics
ISBN : 0821336800

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The Evaluation of Public Expenditure in Africa by Henry J. Bruton,Catharine Hill,Arup Banerji Pdf

World Bank Technical Paper No. 335. Describes the World Bank's successful interventions in three international river basins--the Indus, the Mekong, and the Aral Sea--to foster riparian dialogue, cooperation, and agreements. The paper highlights the Bank's successes in these basins as model strategies to follow for avoiding the adverse impacts that riparian conflicts may have on economic development in other regions.

Author : Alan T. Peacock,Jack Wiseman,Jindrich Veverka
Publisher : Unknown
Page : 268 pages
File Size : 51,5 Mb
Release : 1967
Category : Business & Economics
ISBN : UOM:39015048429396

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The Growth of Public Expenditure in the United Kingdom by Alan T. Peacock,Jack Wiseman,Jindrich Veverka Pdf

Author : Mr.Santiago Acosta Ormaechea,Atsuyoshi Morozumi
Publisher : International Monetary Fund
Page : 45 pages
File Size : 49,5 Mb
Release : 2013-07-08
Category : Business & Economics
ISBN : 9781475550597

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Can a Government Enhance Long-Run Growth by Changing the Composition of Public Expenditure? by Mr.Santiago Acosta Ormaechea,Atsuyoshi Morozumi Pdf

This paper studies the effects of public expenditure reallocations on long-run growth. To do this, we assemble a new dataset based on the IMF’s GFS yearbook for the period 1970-2010 and 56 countries (14 low-, 16 medium-, and 26 high-income countries). Using dynamic panel GMM estimators, we find that a reallocation involving a rise in education spending has a positive and statistically robust effect on growth, when the compensating factor remains unspecified or when this is associated with an offsetting reduction in social protection spending. We also find that public capital spending relative to current spending appears to be associated with higher growth, yet results are non-robust in this latter case.

Author : Willi Semmler
Publisher : World Bank Publications
Page : 36 pages
File Size : 54,7 Mb
Release : 2007
Category : Access to Finance
ISBN : 8210379456XXX

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Fiscal Policy, Public Expenditure Composition, and Growth by Willi Semmler Pdf

Abstract: This paper responds to the development policy debate involving the World Bank and the IMF on the use of fiscal policy not only for economic stabilization but also to promote economic growth and increase per capita income. A key issue in this debate relates to the effect of the composition of public expenditure on economic growth. Policy makers and some researchers have argued that expenditure on growth-enhancing functions could enhance future revenue and justify the provision of "fiscal space" in the budget. But there are no simple ways to identify the growth-maximizing composition of public expenditure. The current paper lays out a research strategy to explore the effects of fiscal policy, including the composition of public expenditure, on economic growth, using a time series approach. Based on the modeling strategy of Greiner, Semmler and Gong (2005) we develop a general model that features a government that undertakes public expenditure on (a) education and health facilities which enhance human capital, (b) public infrastructure such as roads and bridges necessary for market activity, (c) public administration to support government functions, (d) transfers and public consumption facilities, and (e) debt service. The proposed model is numerically solved, calibrated and the impact of the composition of public expenditure on the long-run per capita income explored for low-, lower-middle- and upper-middle-income countries. Policy implications and practical policy rules are spelled out, the extension to an estimable model indicated, a debt sustainability test proposed, and the out-of-steady-state dynamics studied.

Author : Emmanuel Pinto Moreira
Publisher : World Bank Publications
Page : 74 pages
File Size : 50,5 Mb
Release : 2007
Category : Budget Constraint
ISBN : 8210379456XXX

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The Composition of Public Expenditure and Growth: A Small-Scale Intertemporal Model for Low-Income Countries by Emmanuel Pinto Moreira Pdf

Abstract: This paper presents a small-scale intertemporal model of endogenous growth that accounts for the composition of public expenditure and externalities associated with public capital. Government spending is disaggregated into various components, including maintenance, security, and investment in education, health, and core infrastructure. After studying its long-run properties, the model is calibrated for Haiti, using country-specific information as well as parameter estimates from the literature. A variety of policy experiments are then reported, including a reallocation of spending aimed at creating fiscal space to promote public investment; an improvement in fiscal management that leads to a reduction in tax collection costs; higher spending on security; and a composite fiscal package.

Author : Walter Eltis
Publisher : Edward Elgar Publishing
Page : 496 pages
File Size : 44,9 Mb
Release : 1993
Category : Business & Economics
ISBN : UOM:39015029527192

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Classical Economics, Public Expenditure, and Growth by Walter Eltis Pdf

Walter Eltis's work has played a major role in the rediscovery of the policy relevance of classical economics. His articles on Smith, Quesnay, Ricardo and Malthus, where he derives their underlying economic argument from a detailed examination of their principal publications, led to the Bacon and Eltis theory which challenged Keynesian orthodoxy. It showed how growing public expenditure and increasing public debt reduce economic growth and destabilize modern economies. This volume includes a carefully chosen selection of his key articles and papers, as well as an extensive introductory essay which provides an account of the evolution of his ideas and their impact on economic policy.

Author : Mukesh Kumar Solanki,Vinod Sen
Publisher : Allied Publishers
Page : 134 pages
File Size : 44,5 Mb
Release : 2015-02-11
Category : Economic development
ISBN : 9788184249767

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Public Expenditure, Economic Growth and Inflation by Mukesh Kumar Solanki,Vinod Sen Pdf

The book “Public Expenditure, Economic Growth and Inflation” addresses the most relevant issue of inflation in Indian economy. It makes an interesting reading as it attempts to establish the relationship among three macro-economic indicators, i.e., public expenditure, economic growth and inflation. The book gives an overview of the increasing public expenditure and its composition throughout the years after independence. Based on the secondary data the study makes a sincere effort to establish the possible relationship between public expenditure, inflation and economic growth. The book finds out that the Wagner law of increasing state activity is applicable in India both in absolute and relative terms. Economic Growth and public expenditure are positively correlated. Economic growth and inflation are inversely related. As public expenditure is motivated by maximization of social welfare, reduction in public expenditure means to sacrifice the social welfare objective.

Author : Norman Gemmell
Publisher : Edward Elgar Publishing
Page : 296 pages
File Size : 42,5 Mb
Release : 1993
Category : Business & Economics
ISBN : STANFORD:36105004468422

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The Growth of the Public Sector by Norman Gemmell Pdf

This important new book offers fresh insights into the growth of the public sector in advanced and developing economies. The economic causes and consequences of changes in the size of the public sector (especially changes in public expenditure) have fascinated economists from the time of Adam Smith. From the early 1960s, interest has focused particularly on changes in the share of national income devoted to public expenditure. This has exhibited a long-run upward trend since 1945 in almost all OECD countries. Substantial fluctuations over shorter periods have also been observed. Understanding the processes underlying these phenomena is of clear importance for public policy makers, and economists have developed numerous theories attempting to explain them. The major questions of interest are: what 'forces' have been causing the share of public expenditure in GDP to rise over the longer term? Are these forces susceptible to policy? Is the public sector taking an increasing share of 'real' resources? Can government attempts in major OECD countries to control or reduce the size of the public sector in the 1980s and 1990s be sustained? What consequences follow from their success or failure? The Growth of the Public Sector focuses on this important issue and assesses the contribution to current knowledge of different theories including public choice, bureaucracy models, relative price effects and Wagner's Law. It also contains a number of new case studies focusing on specific government activities such as education, health and social security.

Author : Willi Semmler,Alfred Greiner,Bobo Diallo
Publisher : Unknown
Page : 128 pages
File Size : 48,7 Mb
Release : 2012
Category : Electronic
ISBN : OCLC:931670499

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Fiscal Policy, Public Expenditure Composition, and Growth by Willi Semmler,Alfred Greiner,Bobo Diallo Pdf

This paper responds to the development policy debate involving the World Bank and the IMF on the use of fiscal policy not only for economic stabilization but also to promote economic growth and increase per capita income. A key issue in this debate relates to the effect of the composition of public expenditure on economic growth. Policy makers and some researchers have argued that expenditure on growth-enhancing functions could enhance future revenue and justify the provision of "fiscal space" in the budget. But there are no simple ways to identify the growth-maximizing composition of public expenditure. The current paper lays out a research strategy to explore the effects of fiscal policy, including the composition of public expenditure, on economic growth, using a time series approach. Based on the modeling strategy of Greiner, Semmler and Gong (2005) we develop a general model that features a government that undertakes public expenditure on (a) education and health facilities which enhance human capital, (b) public infrastructure such as roads and bridges necessary for market activity, (c) public administration to support government functions, (d) transfers and public consumption facilities, and (e) debt service. The proposed model is numerically solved, calibrated and the impact of the composition of public expenditure on the long-run per capita income explored for low-, lower-middle- and upper-middle-income countries. Policy implications and practical policy rules are spelled out, the extension to an estimable model indicated, a debt sustainability test proposed, and the out-of-steady-state dynamics studied.