Has European Economic Integration Affected the Functional Composition of Government Expenditures?

16 Pages Posted: 30 May 2006

See all articles by Ismael Sanz

Ismael Sanz

Universidad Rey Juan Carlos

Francisco J. Velázquez

Universidad Complutense de Madrid - GRIPICO

Abstract

Globalization and growth-maximizing governments may cause countries to converge toward a similar composition of government expenditures. These convergent forces may be even more intensive in the case of EU member states engaged in the European integration process. The results obtained, through calculation of a constructed dissimilarity index and by adapting the usual indicators of convergence (β, σ, and γ), reveal that there has been a harmonization process. In addition, this approximation of the structures of government expenditures has been greater in the EU than in the non-EU countries of the OECD. Nevertheless, EU member states are converging toward a different steady-state composition of government expenditures.

Suggested Citation

Sanz, Ismael and Velázquez, Francisco J., Has European Economic Integration Affected the Functional Composition of Government Expenditures?. Contemporary Economic Policy, Vol. 24, No. 2, pp. 300-315, April 2006. Available at SSRN: https://ssrn.com/abstract=904959

Ismael Sanz (Contact Author)

Universidad Rey Juan Carlos ( email )

Calle Tulipán, s/n
Madrid, Móstoles 28230
Spain

Francisco J. Velázquez

Universidad Complutense de Madrid - GRIPICO ( email )

Pabellon de Segundo
Somosaguas Campus
Madrid, Madrid E-28223
Spain
+34 91 394 24 58 (Phone)
+34 91 394 24 58 (Fax)

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