Naslov
Public Expenditure and Global Economic Crisis - EU 15

Autori
Ostojić, Aleksandar ; Žmegač, Davor

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Selected Papers presented at 3rd International M-Sphere Conference for multidisclipinarity in Science and Business / Vranešević, Tihomir - Zagreb : Accent Press, 2014, 137-145

ISBN
978-953-7930-06-6

Skup
3rd International M-Sphere Conference For Multidisciplinarity in Business and Science

Mjesto i datum
Zadar, Hrvatska, 02.10.2014. - 04.10.2014

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
public expenditure; COFOG; economic crisis; social protection; average rate trend
(public expenditure; COFOG; economic crisis; social protection; average rate trend.)

Sažetak
This paper analyses the public sector EU-15 countries, with emphasis on public expenditure where it analyses the trends in public expenditure EU-15 during the period from year 1995 until 2012. Public expenditures are measured at local and regional level (general government including social security funds) in relative proportion to the gross domestic product, in order to fully gauge the level of public expenditure. Classification of public expenditure for the EU-15 is made in accordance with the European System of Accounts (ESA-95) in order for data to be unified and thus adequate for research. This paper carries out studies to determine the average rate trend of public expenditure EU-15 in the reference period, and the causes of that particular trend. Public expenditures are classified by functional classification of government (COFOG), and consist of expenditure on general public services, social protection, education, culture, health, housing and community amenities, environmental protection, economic affairs, public order and safety, and defence. The aim of this work is to determine the trend of public spending in three observation periods. The first period is the total time series, from 1995 until 2012. Another time series includes the period up to the beginning of economic crisis, i.e. the period from 1995-2007, in order to determine the trend of public spending before the economic crisis. Last observation period includes time-series from year 2008 until 2012 in order to show the impact of the global economic crisis on public expenditure of the EU-15 countries, and the change in average rate dynamics. The analysis of the public expenditure trend in three different time periods has shown numerical impact of the crisis and the intensity of disturbance of public finances in the EU-15 countries. Expenditure on social protection, education, health, economic affairs and general public services has shown anti-cyclical nature considering the global economic crisis (2008-2012). This global economic crisis has shown the true significance of balanced and stable public finances that do not rely entirely on Keynesian principles. This is because countries that strived to reduce public expenditures before 2008 were proved resilient to the impact of the crisis and had a higher number of fiscal instruments available to mitigate the effects of the crisis.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA