2003 Tridimas--THE ECONOMICS AND EMPIRICS OF THE ALLOCATION OF PUBLIC CONSUMPTION Expenditure英文清晰.pdf

THE ECONOMICS AND EMPIRICS OF THE ALLOCATION OF PUBLIC CONSUMPTION EXPENDITURES GEORGE TRIDIMAS Working Paper n. 2006-02 FEBBRAIO 2006 JEAN MONNET CHAIR Economics of European Integration Università degli Studi di Milano Dipartimento di Scienze Economiche, Aziendali e Statistiche Via Conservatorio 7 -- 20122 Milano tel. ++39 02 503 21501 (21522) fax ++39 02 503 21450 (21505) http://www.economia.unimi.it E Mail: dipeco@unimi.it Second Milan European Economy Workshop, 6-7 giugno 2003 The economics and empirics of the allocation of public consumption expenditures * by George Tridimas Abstract The paper investigates the allocation of public consumption expenditures in the UK. After reviewing the empirical literature on the demand for public services, which is based on applied consumer analysis, it discusses the budgetary making process in the UK. It proceeds by estimating a system of demand equations for general government consumption expenditures in the UK during the period 1963-96. In addition to estimating the effects of relative prices, total expenditure and demographic variables, it finds that the constraints of homogeneity and symmetry cannot be rejected. JEL classification: H0 (Public Economics, General), H5