Explaining the Evolution of Government Size in the Canadian Provinces

Pétry, François; Imbeau, Louis; Crête, Jean; Clavet, Michel

doi:10.1177/109114210002800102

Cited by 15 publications

(12 citation statements)

References 28 publications

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“…In the case of the latter, it has been necessary to elaborate the corresponding econometric theory, and it was not until the 1990s [Henrekson (1990[Henrekson ( , 1993, Murthy (1993)] that this method was used to test Wagner's Law for the first time. This type of analysis improved the reliability of the most recent works, allowing a distinction between long-term relationships and the short-term dynamic relationship [Henrekson (1990[Henrekson ( , 1993, Gemmell (1993), Hondroyiannis and Papatreou (1995), Biswal, Dhawan and Lee (1999), Burney and Musalam (1999), Petry et al (2000), Legrenzi (2000), Karagianni, Pempetzoglou and Strikou. (2002), Burney (2002), Chang (2002), Chang Liu andCaudill (2004), Wahab (2004), Akitoby et al (2006)].…”

Section: Methodsmentioning

confidence: 99%

Wagner's law: A Revision and a New Empirical Estimation

Jaén-García¹

2018

HPE-RPE

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This study conducts an analysis of the various theoretical and practical problems related to Wagner's Law on the growth in public spending. As a contribution, and with the intention of offering a new perspective in considering this principle, this paper puts Wagner´s Law to the test for the first time using public employment as a measure of public spending, which is in line with recommendations by Peacock and Scott (2000). In the empirical contrast we use unit root techniques and cointegration with structural breakpoints. The result obtained leads us to reject the law for Spain based on the belief that there are variables other than that GDP which influence public spending growth.

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Section: Methodsmentioning

confidence: 99%

Wagner's law: A Revision and a New Empirical Estimation

Jaén-García¹

2018

HPE-RPE

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“…1 Seminal contributions include Krueger (1974), Bhagwati (1982), Bates (1981), and Buchanan (1980). An extensive body of research has explored the impact of demographic, geographic, economic, and institutional variables on government size (e.g., Ferris 1996;Garrett 1996Garrett , 1998Joulfaian and Mookerjee, 1991;Lin 2002;Meltzer and Richard 1981;Oates 1985;Persson and Tabellini 1994;Petry 2000;Rodden 2002;Rodrik 1998;Shadbegian 1996Shadbegian , 1999a. See, for example, Wang (1999). tude of the international aid effort, as well as the development policy emphasis of the donor community, such questions are important for addressing both theoretical and policy debates over the effectiveness of international development assistance.…”

mentioning

confidence: 99%

“…2 The impact of foreign aid on fiscal performance is also of significant theoretical interest for the study of the determinants of government spending. An extensive body of research has explored the impact of demographic, geographic, economic, and institutional variables on government size (e.g., Ferris 1996;Garrett 1996Garrett , 1998Joulfaian and Mookerjee, 1991;Lin 2002;Meltzer and Richard 1981;Oates 1985;Persson and Tabellini 1994;Petry 2000;Rodden 2002;Rodrik 1998;Shadbegian 1996Shadbegian , 1999a. Comparatively little attention, however, has been devoted to the study of the fiscal consequences of foreign aid.…”

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confidence: 99%

Does Foreign Aid Promote the Expansion of Government?

Remmer

2004

American Journal of Political Science

163

123

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Building on the literature on public finance, I seek to advance our understanding of variations in government size by exploring the impact of official development assistance on fiscal policy. I hypothesize that foreign aid operates in accordance with the "flypaper effect," systematically generating incentives and opportunities for the expansion of government spending. Results from a time-series cross-sectional regression analysis of growth in government spending over the 1970-99 time period are consistent with the hypothesis. For middle-and lower-income nations, aid represents an important determinant of government expansion. Looking at the tax and revenue side of the equation, however, reveals a more perverse pattern of response: aid promotes not only increased spending but also reduced revenue generation. The results have important implications from both a theoretical and policy perspective. Inter alia they point to the potentially self-defeating nature of efforts to promote market-oriented programs of state retrenchment via development assistance as well as to the importance of incorporating international transfers into future research on government spending.

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“…Notes 1 This definition of government expenditure is consistent with the preference in the literature for an inclusive approach to government spending (Beck 1976;Berry and Lowery 1984a;Imbeau et al 2001;Petry et al 2000). The data for the expenditures is from Statistics Canada '' Table 384-0004-Government sector revenue and expenditure, provincial economic accounts, annual (dollars).''…”

Section: Resultsmentioning

confidence: 98%

The Cost of Government: Decomposing Provincial Expenditures, 1981–2007

Mou

Atkinson

Ul-Munim

2014

Canadian Public Policy

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Les débats sur la taille du gouvernement, qui sont souvent des débats sur ce que le gouvernement devrait ou ne devrait pas faire, devraient aussi se préoccuper des coû ts relatifs pour le gouvernement. Depuis 1981, les prix dans le secteur public ont connu une croissance plus rapide que les prix du PIB. Nous décomposons le rapport entre l'indice des prix à la consommation et celui du PIB des provinces canadiennes, et capturons l'avantage ou le désavantage des prix des gouvernements dans diverses catégories de dépenses. Notre analyse indique que les gouvernements dont le ratio d'endettement est moins élevé et dont les règles fiscales sont plus faibles sont plus vulnérables à l'accroissement des coû ts, en particulier durant les périodes où les prix des produits de base sont plus élevés. Mots clés : maladie de Baumol, indices des prix, contrô le des coû ts, règles budgétaires, syndicalisation du secteur publicDebates about the size of government, which are often debates about what government should or should not do, need to be joined by a concern for the relative cost of government. Since 1981, the price in the public sector has grown faster than the price for GDP. We decompose the ratio between the price index for the public sector and that for GDP in the Canadian provinces and capture the governments' price advantage/ disadvantage in different spending categories. Our analysis shows that governments with lower debt ratios and weaker fiscal rules are more vulnerable to rising costs, particularly during periods of higher commodity prices.

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Explaining the Evolution of Government Size in the Canadian Provinces

Cited by 15 publications

References 28 publications

Wagner's law: A Revision and a New Empirical Estimation

Wagner's law: A Revision and a New Empirical Estimation

Does Foreign Aid Promote the Expansion of Government?

The Cost of Government: Decomposing Provincial Expenditures, 1981–2007

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