Question

In light of government expenditure discuss the Micro Models of expenditure growth?

In light of government expenditure discuss the Micro Models of expenditure growth?

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Answer #1

Ans:-Government expenduture provides several services to the economy .In some cases government provides services absolutely free .In some other cases,the 'user' charges made have no relationship with the value of the services rendered.Government expenditure include government consumption expenditure,investment expenditure etc.Defence,healthcare,law and order etc.are the example of unpaid or partialy charged government expenditure.

Micro model of expenditure growth try to clarify the changes in specific components of GGE(general government expenditure).The micro model expenditure growth resulted the increasing demand for some individual services and also it change their cost of structure.

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