"Public Expenditure Distribution, Voting, and Growth"
First version: June 2009.
Last version: March 2015.
Louis-André Gérard-Varet Prize to the best paper by a young economist at the Annual Meeting of ASSET, 2010.
Best Paper Award at the III Doctoral Meeting of Montpellier, 2010.
In this paper we study why the misallocation of resources across different productive sectors tends to persist over time. To this end we propose a general equilibrium model that delivers two structural relations. On the one hand, the public expenditure distribution influences the future sectoral composition of the economy. On the other, the distribution of vested interests across sectors determines public policy decisions. The model predicts that different initial sectoral compositions entail different future streams of public expenditure and therefore different development paths.
Public Expenditure; Sectoral Composition; Vested Interests; Economic Growth.
Empirical appendix (Stata codes)
- Journal of Public Economic Theory (2017).
Previous working paper versions:
Temi di discussione (Working papers) 961, Bank of Italy (2014).
SSRN working paper (2011).
(previously circulated as "Sector Inequality of Public Spending, Regionalism, and Growth" and "Public Spending Distribution, Regionalism, and Growth")
- Seminar at University of Alicante, February 2011.
- Seminar at University of Barcelona, February 2011.
- Seminar at Public University of Navarra, February 2011.
- Seminar at Navarra Center for International Development, University of Navarra, February 2011.
- Seminar at Bank of Italy, February 2011.
- Seminar at University of Rovira i Virgili, January 2011.
- VI PhD Presentation Meeting of the Royal Economic Society, City University of London, January 2011.
- XXXV Simposio de la Asociación Española de Economía, Universidad Autònoma de Madrid, December 2010.
- Annual Meeting of ASSET, University of Alicante, November 2010.
- II Conference on Recent Developments in Macroeconomics, ZEW and University of Mannheim, June 2010.
- III Doctoral Meeting of Montpellier, Université de Montpellier 1, May 2010.
- Seminar at Toulouse School of Economics, May 2010.
- XV Spring Meeting of Young Economists, CEPS/INSTEAD and University of Luxembourg, April 2010.
- XVII ENTER Jamboree, Toulouse School of Economics, February 2010.
- VIII Workshop on Macroeconomic Dynamics: Theory and Applications, Università di Pavia, December 2009.
- XIV Workshop on Dynamic Macroeconomics, RGEA - Universidade de Vigo, July 2009.
- XXI Villa Mondragone International Economic Seminar, CEIS Economia - Tor Vergata Foundation, Roma, June 2009.
- III My PhD International Conference, Friedrich Ebert Foundation, Bratislava, June 2009.
- I Eurasia Business and Economics Society Conference, Kadir Has Universitesi, Istanbul, June 2009.