The demand for public expenditure in Fiji

Abstract

This paper analyses current government expenditure in Fiji using annual data from 1969 to 1999. Alternative theories of government expenditure are reviewed and a distinction is made between economic/apolitical determinants and institutional/political determinants. Both types of variables appear to be necessary to explain government expenditure. Demand for government goods and services is estimated to be price inelastic and income elastic, consistent with estimates for other countries.