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Integration and the Structure of Public Spending

Hansson, Åsa LU and Olofsdotter, Karin LU (2008) In Comparative Political Studies 41(7). p.1001-1027
Abstract
he voluminous tax competition literature suggests that increased economic integration leads to reduced tax rates and suboptimal levels of government spending as countries compete for mobile factors of production. Integration may influence not only the size of the government but also the structure of public spending. Comprehensive studies analyzing the effect of integration on the overall structure of government spending are rare, however. This article fills this void by providing an empirical analysis of the effects of economic integration on the overall structure of public spending in a number of Organisation for Economic Co-operation and Development countries using panel data on the different government spending components for the period... (More)
he voluminous tax competition literature suggests that increased economic integration leads to reduced tax rates and suboptimal levels of government spending as countries compete for mobile factors of production. Integration may influence not only the size of the government but also the structure of public spending. Comprehensive studies analyzing the effect of integration on the overall structure of government spending are rare, however. This article fills this void by providing an empirical analysis of the effects of economic integration on the overall structure of public spending in a number of Organisation for Economic Co-operation and Development countries using panel data on the different government spending components for the period 1970 to 2002. The authors find that integration negatively influences government consumption and investment but that there is no empirical evidence that transfers are positively or negatively affected by integration, as suggested by the compensation and efficiency views, respectively. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
economic integration, the structure of public spending, tax competition
in
Comparative Political Studies
volume
41
issue
7
pages
1001 - 1027
publisher
SAGE Publications Inc.
external identifiers
  • wos:000256677700005
  • scopus:44849138124
ISSN
1552-3829
DOI
10.1177/0010414007300695
language
English
LU publication?
yes
id
2fc7adb4-6041-4f4c-9440-34a4e42dfbbc (old id 1384447)
alternative location
http://cps.sagepub.com/content/41/7/1001.full.pdf+html
date added to LUP
2009-04-20 12:27:12
date last changed
2017-01-01 04:50:52
@article{2fc7adb4-6041-4f4c-9440-34a4e42dfbbc,
  abstract     = {he voluminous tax competition literature suggests that increased economic integration leads to reduced tax rates and suboptimal levels of government spending as countries compete for mobile factors of production. Integration may influence not only the size of the government but also the structure of public spending. Comprehensive studies analyzing the effect of integration on the overall structure of government spending are rare, however. This article fills this void by providing an empirical analysis of the effects of economic integration on the overall structure of public spending in a number of Organisation for Economic Co-operation and Development countries using panel data on the different government spending components for the period 1970 to 2002. The authors find that integration negatively influences government consumption and investment but that there is no empirical evidence that transfers are positively or negatively affected by integration, as suggested by the compensation and efficiency views, respectively.},
  author       = {Hansson, Åsa and Olofsdotter, Karin},
  issn         = {1552-3829},
  keyword      = {economic integration,the structure of public spending,tax competition},
  language     = {eng},
  number       = {7},
  pages        = {1001--1027},
  publisher    = {SAGE Publications Inc.},
  series       = {Comparative Political Studies},
  title        = {Integration and the Structure of Public Spending},
  url          = {http://dx.doi.org/10.1177/0010414007300695},
  volume       = {41},
  year         = {2008},
}