{
  "title": "The Cyclical and Long-Term Behavior of Government Expenditures in Developing Countries",
  "publication": "IMF Working Papers, October 1, 2004",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/the-cyclical-and-long-term-behavior-of-government-expenditures-in-developing-countries-17728",
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  "summary": "We examine the short- and long-term movements of government spending relative to output in 51 countries. We find that in the short term, the main components of government spending increase with output in about half of the sample countries, with some variation across spending categories and countries",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- Scope: analysis of short- and long-term movements of government spending relative to output in 51 countries.\n- Main short-term result: the main components of government spending increase with output in about half of the sample countries, with variation across spending categories and countries.\n- Long-term result: there is a long-term relationship between government spending and output (in line with \"Wagner's law\") for the majority of countries for at least one spending aggregate.\n- Moderating factors (short term): power dispersion and government size typically dampen the positive response of government spending to output.\n- Amplifying factors (short term): output volatility and financial risk contribute to the procyclicality of government spending."
    },
    {
      "heading": "Short-term dynamics",
      "content": "- Procyclicality evidence:\n  - Main components of government spending increase with output in about half of the 51 countries analyzed.\n  - Responses vary by spending category and by country.\n- Institutional and risk factors:\n  - Power dispersion and government size: typically dampen the positive response of government spending to output.\n  - Output volatility and financial risk: contribute to greater procyclicality of government spending."
    },
    {
      "heading": "Long-term relationship",
      "content": "- Wagner’s law consistency:\n  - For the majority of countries, at least one spending aggregate shows a long-term relationship with output consistent with \"Wagner's law.\""
    },
    {
      "heading": "Data, publication, and metadata",
      "content": "- Authors: Gabriela Inchauste, Bernardin Akitoby, Benedict J. Clements, Sanjeev Gupta\n- Date: October 1, 2004\n- Pages: 24\n- Volume: 2004\n- Issue: 202\n- Series: Working Paper No. 2004/202\n- DOI: https://doi.org/10.5089/9781451874433.001\n- Stock No: WPIEA2004202\n- ISBN: 9781451874433\n- ISSN: 1018-5941\n- Subjects and keywords: Capital spending; Current spending; Expenditure; Government consumption; National accounts; Total expenditures; Africa; Business cycles; elasticity of government spending; financial risk; Fiscal policy; GDP ratio; Government consumption expenditure; Wagner’s law; WP\n\nSource: IMF Working Paper — \"The Cyclical and Long-Term Behavior of Government Expenditures in Developing Countries\" (October 1, 2004).\n\n---\n\n Content in this bundle\n\n- Wp04202\n  - Wp04202 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp04202 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-cyclical-and-long-term-behavior-of-government-expenditures-in-developing-countries-17728"
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    "Authors: Gabriela Inchauste, Bernardin Akitoby, Benedict J. Clements, Sanjeev Gupta",
    "Published: October 1, 2004",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451874433.001",
    "Scope: analysis of short- and long-term movements of government spending relative to output in 51 countries.",
    "Main short-term result: the main components of government spending increase with output in about half of the sample countries, with variation across spending categories and countries.",
    "Long-term result: there is a long-term relationship between government spending and output (in line with \"Wagner's law\") for the majority of countries for at least one spending aggregate.",
    "Moderating factors (short term): power dispersion and government size typically dampen the positive response of government spending to output.",
    "Amplifying factors (short term): output volatility and financial risk contribute to the procyclicality of government spending.",
    "Procyclicality evidence:",
    "Institutional and risk factors:",
    "Wagner’s law consistency:",
    "Authors: Gabriela Inchauste, Bernardin Akitoby, Benedict J. Clements, Sanjeev Gupta",
    "Date: October 1, 2004",
    "Pages: 24",
    "Volume: 2004",
    "Issue: 202",
    "Series: Working Paper No. 2004/202",
    "DOI: https://doi.org/10.5089/9781451874433.001",
    "Stock No: WPIEA2004202",
    "ISBN: 9781451874433",
    "ISSN: 1018-5941",
    "Subjects and keywords: Capital spending; Current spending; Expenditure; Government consumption; National accounts; Total expenditures; Africa; Business cycles; elasticity of government spending; financial risk; Fiscal policy; GDP ratio; Government consumption expenditure; Wagner’s law; WP",
    "**Wp04202**"
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