Public Finance and The Size of Government: A Literature Review and Econometric Results for Fiji: Discussion Paper No. 108

Doessel, Darrel P. & Valadkhani, Abbas (2002) Public Finance and The Size of Government: A Literature Review and Econometric Results for Fiji: Discussion Paper No. 108. [Working Paper]


This paper analyses current government expenditure in Fiji using annual time series data for the period 1969-1999. Alternative theories of government expenditure are reviewed and a distinction is made between economic/apolitical determinants and institutional/political determinants. Categorising the literature in this way suggests the application of non-nested tests in empirical work. The first step is to estimate the two models separately. All four test statistics for non-nested hypotheses lead to the conclusion of double rejection. A parsimonious comprehensive model, encompassing both economic and institutional variables, is preferred as it passes all diagnostic tests and involves the acceptance conclusion from pairwise non-nested tests.

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ID Code: 528
Item Type: Working Paper
Refereed: No
Additional URLs:
Keywords: Explaining Public Expenditure in Fiji, Theory and Econometric Results
ISSN: 1324-5910
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200) > Financial Economics (140207)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2002 (Please consult author)
Deposited On: 08 Nov 2004 00:00
Last Modified: 02 Feb 2012 09:44

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