Political institutions, inequality, and agricultural growth : the public expenditure connection, Vol. 1 of 1

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Political institutions, inequality, and agricultural growth : the public expenditure connection

Author:	Allcott, Hunt; Lederman, Daniel; Lopez, Ramon;	Collection Title:	Policy, Research working paper ; no. WPS 3902
Country:	Latin America;	Date Stored:	2006/04/19
Document Date:	2006/04/01	Document Type:	Policy Research Working Paper
Language:	English	Region:	Latin America & Caribbean
Report Number:	WPS3902	SubTopics:	Achieving Shared Growth; Political Economy; Economic Theory & Research; Public Sector Expenditure Policy; Public Sector Economics
Volume No:	1 of 1

Summary: This paper brings together the literatures on the political economy of public expenditures and the determinants of economic growth. Based on a new dataset of rural public expenditures in a panel of Latin American economies, the econometric evidence suggests that non-social subsidies reduce agricultural GDP. Furthermore, the evidence suggests that political and institutional factors as well as income inequality are determinants of the size and structure of rural public expenditures, through which they have large and significant effects on agricultural GDP.


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