The aim of this paper is to investigate the impact of economic openness on the vertical structure of the public sector within a country. To tackle this issue we set up a simple theoretical model of fiscal federalism, where both central and local public spending enter the objective functions of both a central government and an aggregate local public sector, accommodating a wide range of behaviou...

Public health encompasses a broad array of programs designed to prevent the occurrence of disease and injury within communities. But policy makers have little evidence to draw on when determining the value of investments in these program activities, which currently account for less than 5 percent of US health spending. We examine whether changes in spending by local public health agencies over ...

F amilies receiving public assistance differ from other families not only demographically, but also in the way they spend. Expenditures on basic needs account for a larger share of the assisted families’ spending. Furthermore, when the assisted families are classified by the number of public assistance programs received (such as medicaid, food stamps, and subsidized housing), the data indicate ...

Since the Coleman Report, many have questioned whether public school spending affects student outcomes. The school finance reforms that began in the early 1970s and accelerated in the 1980s caused dramatic changes to the structure of K-12 education spending in the United States. To study the effect of these school finance reform—induced changes in public school spending on long-run adult outcom...

Little is known about the extent to which public spending is targeted towards the poor in Mozambique. The objective of the present paper is to assess whether public expenditures on education and health, in particular, are successful at reaching the poorer segments of the Mozambican population. Standard non-behavioural benefit-incidence methodology is applied, combining individual client informa...

This article provides a comprehensive analysis of stability and punctuations in public spending within and across two different countries—Denmark and the United States. The theoretical starting point is the classic model of budget incrementalism and Jones and Baumgartner’s model of disproportionate information processing. First, despite the clear differences in institutional setup, we show that...

Since the Coleman Report, many have questioned whether public school spending affects student outcomes. The school finance reforms that began in the early 1970s and accelerated in the 1980s caused dramatic changes to the structure of K–12 education spending in the United States. To study the effect of these school finance reform–induced changes in public school spending on long-run adult outcom...

The allocation of a government budget between a public good and transfers is modeled under different systems of government. The relatively even distribution of political power among groups in a democracy favors spending on nonexclusive public goods. The more concentrated pattern of political power in a dictatorship favors spending on transfers targeted to powerful groups. The hypothesis on publ...

This report presents the latest estimates of Hong Kong's domestic health spending between fiscal years 1989/90 and 2004/05, cross-stratified and categorised by financing source, provider and function on an annual basis. Total expenditure on health was HK$67,807 million in fiscal year 2004/05. In real terms, total expenditure on health showed positive growth averaging 7% per annum throughout the...