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Government spending: Is development assistance harmonised with other budgets?

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  • Abbott, Andrew
  • Jones, Philip

Abstract

This paper explores the way governments rely on budgets. Budgets are classified with reference to functions (e.g. defence, education, etc.), but expenditure from one budget (e.g. the overseas budget) can prove as effective as expenditure from another budget (e.g. the environment budget) when pursuing a specific policy goal. Are donor countries internalising spillovers by harmonising overseas aid spending with other budgetary expenditures? An empirical analysis of OECD countries (between 1990 and 2005) suggests that they rely systematically on a preferred portfolio of budgets.

Suggested Citation

  • Abbott, Andrew & Jones, Philip, 2012. "Government spending: Is development assistance harmonised with other budgets?," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 921-931.
    • Handle: RePEc:eee:jpolmo:v:34:y:2012:i:6:p:921-931
    DOI: 10.1016/j.jpolmod.2012.05.017
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    References listed on IDEAS

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    7. Clist, Paul, 2011. "25Years of Aid Allocation Practice: Whither Selectivity?," World Development, Elsevier, vol. 39(10), pages 1724-1734.
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    9. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
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    Cited by:

    1. Rohan Sweeney & Duncan Mortimer, 2016. "Has the Swap Influenced Aid Flows in the Health Sector?," Health Economics, John Wiley & Sons, Ltd., vol. 25(5), pages 559-577, May.

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    More about this item

    Keywords

    Budget; Defence; Education; Health; Environment;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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