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The allocation of public consumption expenditure in the UK

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  • Jean-Yves Pitarakis
  • George Tridimas

Abstract

Using the Almost Ideal Demand System specification we analyse whether UK public consumption expenditure decisions are compatible with traditional utility maximization postulates. Our empirical findings tend to support the validity of the constraints of homogeneity and symmetry.

Suggested Citation

  • Jean-Yves Pitarakis & George Tridimas, 1998. "The allocation of public consumption expenditure in the UK," Applied Economics Letters, Taylor & Francis Journals, vol. 5(3), pages 197-200.
    • Handle: RePEc:taf:apeclt:v:5:y:1998:i:3:p:197-200
    DOI: 10.1080/758521381
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    References listed on IDEAS

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    1. Dunne, John Paul & Pashardes, Panos & Smith, Ronald P, 1984. "Needs, Costs and Bureaucracy: The Allocation of Public Consumption in the UK," Economic Journal, Royal Economic Society, vol. 94(373), pages 1-15, March.
    2. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    3. Deacon, Robert T, 1978. "A Demand Model for the Local Public Sector," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 184-192, May.
    4. Laitinen, Kenneth, 1978. "Why is demand homogeneity so often rejected?," Economics Letters, Elsevier, vol. 1(3), pages 187-191.
    5. BARTEN, Anton P., 1969. "Maximum likelihood estimation of a complete system of demand equations," LIDAM Reprints CORE 34, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Attfield, C. L. F., 1995. "A Bartlett adjustment to the likelihood ratio test for a system of equations," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 207-223.
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    Cited by:

    1. George Tridimas, 1999. "A Demand-Theoretic Analysis of Public Consumption Priorities in the United Kingdom," Public Finance Review, , vol. 27(6), pages 599-623, November.
    2. George TRIDIMAS, 2006. "The economics and empirics of the allocation of public consumption expenditures," Departmental Working Papers 2006-02, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    3. Pitarakis, Jean-Yves & Tridimas, George, 1999. "Total expenditure endogeneity in a system of demand for public consumption expenditures in the UK," Economic Modelling, Elsevier, vol. 16(2), pages 279-291, April.

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