Does the composition of government expenditure matter for long-run GDP levels?
We examine the long-run GDP impacts of changes in total government expenditure and in the shares of different spending categories for a sample of OECD countries since the 1970s, taking account of methods of financing expenditure changes and possible endogenous relationships. We provide more systemat...
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| Format: | Article |
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Wiley
2015
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| Online Access: | https://eprints.nottingham.ac.uk/30878/ |
| _version_ | 1848794081834041344 |
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| author | Richard, Kneller Norman, Gemmell Ismael, Sanz |
| author_facet | Richard, Kneller Norman, Gemmell Ismael, Sanz |
| author_sort | Richard, Kneller |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We examine the long-run GDP impacts of changes in total government expenditure and in the shares of different spending categories for a sample of OECD countries since the 1970s, taking account of methods of financing expenditure changes and possible endogenous relationships. We provide more systematic empirical evidence than available hitherto for OECD countries, obtaining strong evidence that reallocating total spending towards infrastructure and education is positive for long-run output levels. Reallocating spending towards social welfare (and away from all other expenditure categories pro-rata) may be associated with modest negative effects on output in the long-run. |
| first_indexed | 2025-11-14T19:10:32Z |
| format | Article |
| id | nottingham-30878 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:10:32Z |
| publishDate | 2015 |
| publisher | Wiley |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-308782020-05-04T20:11:48Z https://eprints.nottingham.ac.uk/30878/ Does the composition of government expenditure matter for long-run GDP levels? Richard, Kneller Norman, Gemmell Ismael, Sanz We examine the long-run GDP impacts of changes in total government expenditure and in the shares of different spending categories for a sample of OECD countries since the 1970s, taking account of methods of financing expenditure changes and possible endogenous relationships. We provide more systematic empirical evidence than available hitherto for OECD countries, obtaining strong evidence that reallocating total spending towards infrastructure and education is positive for long-run output levels. Reallocating spending towards social welfare (and away from all other expenditure categories pro-rata) may be associated with modest negative effects on output in the long-run. Wiley 2015 Article NonPeerReviewed Richard, Kneller, Norman, Gemmell and Ismael, Sanz (2015) Does the composition of government expenditure matter for long-run GDP levels? Oxford Bulletin of Economics and Statistics . ISSN 1468-0084 (In Press) government expenditure composition fiscal policy GDP http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2484917 doi:10.2139/ssrn.2484917 doi:10.2139/ssrn.2484917 |
| spellingShingle | government expenditure composition fiscal policy GDP Richard, Kneller Norman, Gemmell Ismael, Sanz Does the composition of government expenditure matter for long-run GDP levels? |
| title | Does the composition of government expenditure matter for long-run GDP levels? |
| title_full | Does the composition of government expenditure matter for long-run GDP levels? |
| title_fullStr | Does the composition of government expenditure matter for long-run GDP levels? |
| title_full_unstemmed | Does the composition of government expenditure matter for long-run GDP levels? |
| title_short | Does the composition of government expenditure matter for long-run GDP levels? |
| title_sort | does the composition of government expenditure matter for long-run gdp levels? |
| topic | government expenditure composition fiscal policy GDP |
| url | https://eprints.nottingham.ac.uk/30878/ https://eprints.nottingham.ac.uk/30878/ https://eprints.nottingham.ac.uk/30878/ |