International Journal of Economics and Financial Issues (Dec 2017)

A Demand Determinants Model for Public Spending in Spain

  • Manuel Jaén-García

Journal volume & issue
Vol. 7, no. 4
pp. 372 – 386

Abstract

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In this paper an attempt is made to analyze the causes of growth of public government considering a demand model. The main contribution is the elaboration of a comprehensive and synthetic model in which economic-structural and political-institutional variables are included. To our knowledge, it is the first work that attempts this kind of model as it considers such a high number of variables, which implies great difficulties upon conducting the corresponding analysis. We consider the public expenditure in Spain in the period 1958-2014 where there are structural points. Then we use unit root and cointegration tests in a structural breaks context.

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