The Effects of Integration on the Structure of Government Expenditure - Empirical Evidence from the EU and EFTA Member States
(2012) NEKP01 20121Department of Economics
- Abstract (Swedish)
- The vast literature on integration and public policies suggests a relationship between integration and public spending. The purpose of this study is to examine whether integration has affected the structure of public spending in the member states of the European Union and European Free Trade Association in 1996-2009. Both aggregate and ten disaggregated spending components will be examined and five different integration indices employed to capture various possible effects. In addition, the sample will be divided into core and periphery countries to see whether integration has had different impacts on those two country groups. The results of the analysis show that integration has had different effects on a number of spending components, and... (More)
- The vast literature on integration and public policies suggests a relationship between integration and public spending. The purpose of this study is to examine whether integration has affected the structure of public spending in the member states of the European Union and European Free Trade Association in 1996-2009. Both aggregate and ten disaggregated spending components will be examined and five different integration indices employed to capture various possible effects. In addition, the sample will be divided into core and periphery countries to see whether integration has had different impacts on those two country groups. The results of the analysis show that integration has had different effects on a number of spending components, and thus altered the structure of public expenditures. Negative effects are captured on the largest spending components, indicating a decrease in government size while the results support an increase in productive spending to some extent. The analysis of the core and periphery countries has similar implications. However, aggregate spending in core countries is negatively affected, which contradicts theory that states that core countries are better able to sustain tax bases and in less need to alter spending. Overall the results favor the efficiency hypothesis. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/3051925
- author
- Finnsdóttir, María LU
- supervisor
-
- Åsa Hansson LU
- organization
- course
- NEKP01 20121
- year
- 2012
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Integration, structure of public spending, disaggregated spending components, core, periphery.
- language
- English
- id
- 3051925
- date added to LUP
- 2012-09-27 11:43:26
- date last changed
- 2012-09-27 11:43:26
@misc{3051925, abstract = {{The vast literature on integration and public policies suggests a relationship between integration and public spending. The purpose of this study is to examine whether integration has affected the structure of public spending in the member states of the European Union and European Free Trade Association in 1996-2009. Both aggregate and ten disaggregated spending components will be examined and five different integration indices employed to capture various possible effects. In addition, the sample will be divided into core and periphery countries to see whether integration has had different impacts on those two country groups. The results of the analysis show that integration has had different effects on a number of spending components, and thus altered the structure of public expenditures. Negative effects are captured on the largest spending components, indicating a decrease in government size while the results support an increase in productive spending to some extent. The analysis of the core and periphery countries has similar implications. However, aggregate spending in core countries is negatively affected, which contradicts theory that states that core countries are better able to sustain tax bases and in less need to alter spending. Overall the results favor the efficiency hypothesis.}}, author = {{Finnsdóttir, María}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Effects of Integration on the Structure of Government Expenditure - Empirical Evidence from the EU and EFTA Member States}}, year = {{2012}}, }