Government deficits and spending in Barbados: an empirical test of the Buchanan-Wagner hypothesis

Author(s): Craigwell, Roland C (1989)

Created 24 Jul, 1989
Categories Working Papers
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This paper uses a public choice approach to model government expenditure growth in Barbados over the years 1954-1986. The results from the error correction model estimated suggest that (1) deficit financing contribute to increased real government spending; (2) that the demand for government services is not income elastic; (3) that economies of scale exist in the provision of government services; and (4) that there is some evidence of a productivity lag in the government sector.

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