Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

The Displacement Effect in the Growth of Governments

Gabriella Legrenzi
Public Choice
Vol. 120, No. 1/2 (Jul., 2004), pp. 191-204
Published by: Springer
Stable URL: http://www.jstor.org/stable/30025835
Page Count: 14
  • Download ($43.95)
  • Cite this Item
The Displacement Effect in the Growth of Governments
Preview not available

Abstract

We analyze the displacement effect within a multivariate revenue-expenditure model of government growth, based on a long historical dataset, for Italy. Our long-run analysis shows a permanent influence of domestic product on the growth of governments, supporting Wagner's law. The short-run dynamics are more complex and provide some evidence for the displacement effect, in terms of a lower resistance against tax-financing of government spending in the post-war. In addition, government spending adjusts faster when deviations from its equilibrium get larger.

Page Thumbnails

  • Thumbnail: Page 
191
    191
  • Thumbnail: Page 
192
    192
  • Thumbnail: Page 
193
    193
  • Thumbnail: Page 
194
    194
  • Thumbnail: Page 
195
    195
  • Thumbnail: Page 
196
    196
  • Thumbnail: Page 
197
    197
  • Thumbnail: Page 
198
    198
  • Thumbnail: Page 
199
    199
  • Thumbnail: Page 
200
    200
  • Thumbnail: Page 
201
    201
  • Thumbnail: Page 
202
    202
  • Thumbnail: Page 
203
    203
  • Thumbnail: Page 
204
    204