Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168999
Authors: 
Perović, Lena Maleševic
Golem, Silvia
Kosor, Maja Mihaljević
Year of Publication: 
2016
Citation: 
[Journal:] Amfiteatru Economic Journal [ISSN:] 2247-9104 [Volume:] 18 [Year:] 2016 [Issue:] 42 [Pages:] 240-254
Abstract: 
This paper contributes to the empirical literature on convergence by applying convergence model to components of government expenditures (by function) in EU15 during 1995-2010, using the data from United Nations Statistics Division. Moreover, we extend the traditional convergence model to allow for spatial correlation between countries in the sample, by estimating spatial autocorrelation (SAC) model for each component of government expenditures. This approach is important in that it provides more efficient coefficients, and offers policy-makers useful information regarding fiscal policies determinants that are attributable to other countries. We find that spatial aspects play an important role for Defence, Health and Education. More precisely, half-life convergence for Defence occurs in 6.37 years, for Health in 3.11 years and for Education in 5 years.
Subjects: 
convergence
government expenditure by functions
spatial econometrics
JEL: 
C23
H1
H5
O47
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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