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Government Consumption expenditures available from macroeconomic models are
typically aggregates. They thus are less useful both for analyzing how
government expenditure patterns may shift over time. Collected information
on government spending is prone to many problems, not the least of which is
classification error. The approach taken is to use available data and to
estimate the patterns based on relative stage of economic development. In
the case of the United States defense spending has been augmented to reflect
post-9/11 realities. |
Data Source: United Nations Standard National Accounts.
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Forecasting Methods: Integrated system based on results
from models for personal consumption expenditure by category, government
spending, intermediate demand by ISIC, and investment demand by ISIC,
commodity prices, manufactured wages, employment by industry group, imports
by and exports by ISIC using an iterative process to insure partial
convergence. |
Applications: Useful for companies selling mainly to
government agencies. |
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