Convergence in public expenditures across EU countries: evidence from club convergence

Nicholas Apergis · Christina Christou · Christis Hassapis

65 citations0/0 files storedEconomics & Finance Research

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Fiscal Policies and Political Economy Economic and Fiscal Studies Fiscal Policy and Economic Growth

Abstract

The goal of the present article is to investigate the degree of convergence in public expenditures for a panel of 17 European Union member countries spanning the period 1990 to 2012. We apply the methodology of Phillips and Sul (Citation2007) to various categories of public expenditures to assess the existence of convergence clubs. Overall, the results do not support the hypothesis that all countries converge to a single equilibrium state in various public expenditures.

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1990Government Spending in a Simple Model of Endogeneous Growth 2005Handbook of Economic Growth 1993Tests for Parameter Instability and Structural Change With Unknown Change Point 1995R & D-Based Models of Economic Growth 2000Sample Splitting and Threshold Estimation 1999Public Goods and Ethnic Divisions 1997Public Goods and Ethnic Divisions 1990Threshold Externalities in Economic Development

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