Intergovernmental transfers and procyclical public spending

Andrew Abbott, Philip Jones

Research output: Contribution to journalArticle

  • 3 Citations

Abstract

This paper tests the predictions that (i) sub-central government expenditures are procyclical and (ii) sub-central government expenditures are likely to be more procyclical than central government spending. The predictions are based on the importance of ‘voracity effects’ and on the proposition that they are systematically more pervasive if spending is financed by intergovernmental transfers. Evidence from 23 OECD countries between 1995 and 2006 indicates that sub-central government spending is more procyclical than central government expenditure.
LanguageEnglish
Pages447-451
Number of pages5
JournalEconomics Letters
Volume115
Issue number3
DOIs
StatusPublished - Jun 2012

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Central government
Intergovernmental transfers
Public spending
Government expenditure
Government spending
Prediction
OECD countries

Cite this

Intergovernmental transfers and procyclical public spending. / Abbott, Andrew; Jones, Philip.

In: Economics Letters, Vol. 115, No. 3, 06.2012, p. 447-451.

Research output: Contribution to journalArticle

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