the purpose of this paper is to examine and evaluate the effects of government intervention on the iranian economy over the last few decades. it is shown that public expenditures affect the value added of each economic sector not only simultaneously, but lagged over several periods. regression results show that the value added from the agricultural sector has never been affected by government e...

this paper examines the idea that the rate of inflation tends to increase nominal government expenditures faster than government revenues. it concludes that while government expenditures rise concurrently with inflation, real government revenues tend to fall based on collection tags. empirical results using time series data for iran support our expectations in which the longer is the delay in g...

The tax-expenditure hypothesis posed by Milton Friedman emphasizes a positive causal relationship between government tax revenues and government expenditures. If citizens do not have a correct perception of the real tax burden and under-estimate the price of public goods and services, there is a negative causal relationship between tax revenues and government expenditures, which indicates exist...

Governments are responsible for the funding or direct provision of a wide array services and activities, such as healthcare, education justice; guaranteeing public order safety civilians; representing country internationally. Governments’ expenditures by function provides an overview use resources in key areas sheds light on government priorities preferences delivery modes (i.e. fully combinati...

There has been recent controversy about whether aid directed specifically to health has caused recipient governments to reallocate their own funds to non-health areas. At the same time, general budget support (GBS) has been increasing. GBS allows governments to set their own priorities, but little is known about how these additional resources are subsequently used. This paper uses cross-country...

This study is an attempt to explore the impact of trade and financial openness on government size in the case of Pakistan. In doing so, we utilized FMOLS for cointegration and Ng-Perron for unit root estimation along with ECM for short run dynamics. Empirical results reveal that current government expenditures influence government size in future. Trade-openness is associated positively with the...

According to the disciplining hypothesis, globalization restrains governments by inducing increased budgetary pressure. As a consequence, governments shift their expenditures in favour of transfers and subsidies and away from capital expenditures. This expenditure shift is potentially enhanced by citizens’ preferences to be compensated for the risks of globalization (“compensation hypothesis”)....