Institutional and Non-Institutional Determinants of Volatile Non-Systematic Discretionary Spending: A Panel Data Analysis

Authors

  • Farhat Rasul Assistant Professor, Department of Economics and Statistics, HSM. University of Management and Technology, Lahore
  • Nabila Asghar Associate Professor, Department of Economics and Business Administration, Division of Management and Administrative Sciences, University of Education, Lahore
  • Hafeez Ur Rehman University of Management and Technology Lahore

DOI:

https://doi.org/10.52700/assap.v2i2.53

Keywords:

Volatility, Non-systematic Discretionary Spending, GMM

Abstract

Volatility in discretionary public spending has diverse implications for overall economic performance. This study investigates institutional and non-institutional factors of non-systematic discretionary public spending. The study considers a panel of 55 economies for a period of 1990-2019 and applies GMM estimation technique. The findings suggest that in aggregated sample, institutional determinants significantly reduce volatility in non-systematic discretionary public spending; nevertheless, non-institutional determinants promote such spending volatility. Additionally, disaggregated analysis suggests an inverse situation in developing economies.     

Published

2021-11-13

Issue

Vol. 2 No. 2 (2021): Annals of Social Sciences and Perspective

Section

Articles

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Creative Commons License

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