The Evolution and Convergence of the Government Expenditure Composition in the OECD Countries

In the light of models of composition ofgovernment expenditure and economic growthand the growing globalization process, weinfer that countries should tend to asimilar structure of government spendingover time. In fact, using Tukey box-plotsand σ-convergence we show evidenceof an approaching process in thecomposition of government expenditures inOECD countries for the period 1970–1997. Wealso identify by means of cluster analysisthat most countries are converging towardstwo different models: one including twelveEuropean and non-European countries and theother composed solely of eight countries ofthe European Union.