Throughout the developed world, public finances dominate headlines. Given the widespread unsustainability of budget plans and the bitter attrition of retrenchment, they are like to do so for the next decade or more. As they have long done, different polities are likely to make different choices for how to spend dwindling public moneys. Understanding the sources of past heterogeneity—why countries have differed in their public spending—is thus of interest as we enter an age of fiscal adjustment. Messieurs Creedy and Moslehi offer us a technical primer laying the groundwork for modeling efforts.
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Cameron Shelton. Review of “Modeling the Composition of Government Expenditure” (2011) by Creedy J. and Moslehi, S., Journal of Economics and Statistics (2012) vol. 232, no. 5, p. 590-592