Premium
An Analysis of the Convergence of the Composition of Public Expenditures in E uropean U nion Countries
Author(s) -
Ferreiro Jesús,
GarcíadelValle M. Teresa,
Gómez Carmen
Publication year - 2013
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/ajes.12028
Subject(s) - convergence (economics) , economics , composition (language) , public economics , european union , public policy , endogenous growth theory , fiscal policy , economic policy , macroeconomics , economic growth , linguistics , philosophy , human capital
Abstract The literature on fiscal policies is paying increasing attention to the impact of the composition of public expenditures on long‐term economic growth. Public policy endogenous growth models recommend to change the composition of public expenditures to items considered productive expenditures. In this sense, E uropean institutions are encouraging the rise in the share of productive outlays like public investments, R&D , and active labor market policies, among others. The article analyzes whether these recommendations are followed by E uropean U nion countries and whether a convergence to a new pattern of public finances with a higher share of those items considered productive expenditures by E uropean institutions is arising.