Optimal Government Budget Allocation According to Aggregate Welfare using Generalized Method of Moments

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Noori Ali Heydar; SARLAK AHMAD; RAHMATI MOHAMMAD HOSSEIN

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Journal Paper

Paper Information

Journal: Economic and Planning Research Year:2022 | Volume:26 | Issue:4 Page(s): 65-91

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Information Journal Paper

Title

Optimal Government Budget Allocation According to Aggregate Welfare using Generalized Method of Moments

Author(s)

Noori Ali Heydar | SARLAK AHMAD | RAHMATI MOHAMMAD HOSSEIN | Issue Writer Certificate

Keywords

Welfare

Optimal Allocation

Generalized Method of Moments

Public Budget

Budget Outcome

Abstract

How should the government budget be allocated to public education, higher education, health, transportation, IT, energy, or indirect public services including expenses on laws and regulations, business governance, and tax reforms. We examine data between 1989 and 2019 of public spending and their outcomes for each affair and title. The results show that despite the fact that the number of students declined over time, the spending on public education has been raised. The structural model is estimated by Generalized Method of Moments, and the estimates show that households put significant weights on education and health, as well as energy. However, even with considerable weights on these public goods, due to inefficient production of public services, the counterfactuals illustrate that more spending on tax reform, business environment, and governance relative to actual budget is optimal.

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APA: Copy

Noori, Ali Heydar, SARLAK, AHMAD, & RAHMATI, MOHAMMAD HOSSEIN. (2022). Optimal Government Budget Allocation According to Aggregate Welfare using Generalized Method of Moments. THE JOURNAL OF PLANNING AND BUDGETING, 26(4 ), 65-91. SID. https://sid.ir/paper/1034521/en

Vancouver: Copy

Noori Ali Heydar, SARLAK AHMAD, RAHMATI MOHAMMAD HOSSEIN. Optimal Government Budget Allocation According to Aggregate Welfare using Generalized Method of Moments. THE JOURNAL OF PLANNING AND BUDGETING[Internet]. 2022;26(4 ):65-91. Available from: https://sid.ir/paper/1034521/en

IEEE: Copy

Ali Heydar Noori, AHMAD SARLAK, and MOHAMMAD HOSSEIN RAHMATI, “Optimal Government Budget Allocation According to Aggregate Welfare using Generalized Method of Moments,” THE JOURNAL OF PLANNING AND BUDGETING, vol. 26, no. 4 , pp. 65–91, 2022, [Online]. Available: https://sid.ir/paper/1034521/en

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