01978cas a2200277 a 4500 AALejournalIMF022386 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874433 1018-5941 BD-DhAAL BD-DhAAL Inchauste, Gabriela. The Cyclical and Long-Term Behavior of Government Expenditures in Developing Countries / Gabriela Inchauste, Bernardin Akitoby, Benedict Clements, Sanjeev Gupta. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We examine the short- and long-term movements of government spending relative to output in 51 countries. We find that in the short term, the main components of government spending increase with output in about half of the sample countries, with some variation across spending categories and countries. Further, we find that there is a long-term relationship between government spending and output (in line with "Wagner's law") for the majority of countries for at least one spending aggregate. In the short term, we find that power dispersion and government size typically dampen the positive response of government spending to output. Output volatility and financial risk, on the other hand, contribute to the procylicality of government spending. Mode of access: Internet Akitoby, Bernardin. Clements, Benedict. Gupta, Sanjeev. IMF Working Papers; Working Paper ; No. 2004/202 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/202/001.2004.issue-202-en.xml IMF e-Library