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Has European Economic Integration Affected The Functional Composition Of Government Expenditures?

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  • ISMAEL SANZ
  • FRANCISCO J. VELÁZQUEZ

Abstract

Globalization and growth‐maximizing governments may cause countries to converge toward a similar composition of government expenditures. These convergent forces may be even more intensive in the case of EU member states engaged in the European integration process. The results obtained, through calculation of a constructed dissimilarity index and by adapting the usual indicators of convergence (β, σ, and γ), reveal that there has been a harmonization process. In addition, this approximation of the structures of government expenditures has been greater in the EU than in the non‐EU countries of the OECD. Nevertheless, EU member states are converging toward a different steady‐state composition of government expenditures. (JEL H11, H50, H60)

Suggested Citation

  • Ismael Sanz & Francisco J. Velázquez, 2006. "Has European Economic Integration Affected The Functional Composition Of Government Expenditures?," Contemporary Economic Policy, Western Economic Association International, vol. 24(2), pages 300-315, April.
    • Handle: RePEc:bla:coecpo:v:24:y:2006:i:2:p:300-315
    DOI: 10.1093/cep/byj022
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    More about this item

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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