Government consumption preprocessor

Sources

• WHO_Global_Health_Expenditure_Database
• IMF
• World Development Indicators (WDI)

Series read into DataGovCon

Table	Group	Subgroup	Source	Definition	Last IFs Update
SeriesGovtMil%GDP	Government, Infrastructure, Conflict	Expenditure	ACDA www.state.gov/global/arms/bureau_ac/reports_ac.html + asst earlier volumes	Military expenditures as percent of GDP (ACDA)	Unknown
SeriesGovtMil%GDPSIPRI	Government, Conflict	Expenditure	SIPRI, Stockholm International Peace Research Institute	Military expenditures as percent of GDP (SIPRI)	2013/06/13
SeriesR&D%GDPWDI	Science Technology, Infrastructure, Knowledge	R&D	Constructed from multiple WDI vol;CD incl 01, 02, 04,05,06,07; 2006-2008 Update from UIS Website	R&D as % of GDP (in some earlier years was GNI)	2013/08/07
SeriesR&DGovt%GDP	Government	Research and Development	UNESCO	Gross R&D expenditure by government	2013/09/04
SeriesGovtCalcHealthCen%GDP	Economic	Finance	IMF GFS 2013 BATCH PULL	Health spending, government, Central government, as % of GDP	2013/12/20
SeriesGovtCalcHealthTot%GDP	Economic	Finance	IMF GFS 2013 BATCH PULL	Health spending, government, total, as % of GDP	2013/12/20
SeriesGovtCalcEdCen%GDP	Economic	Finance	IMF GFS 2013 BATCH PULL	Education spending, government, Central government, as % of GDP	2013/12/20
SeriesGovtCalcEdTot%GDP	Economic	Finance	IMF GFS 2013 BATCH PULL	Education spending, government, total, as % of GDP	2013/12/20
SeriesHealthExpPriv%Tot	Population, Health	Expenditure	WHO Global Health Expenditure Database	Private expenditure on health (PvtHE) as % of Total Health Expenditure	2014/04/22
SeriesHealthExpTot%GDP	Population, Health	Expenditure	WHO Global Health Expenditure Database	Total health expenditure (THE) % Gross Domestic Product (GDP)	2014/04/22
SeriesGovtHl%GDP	Government, Health, Infrastructure	Expenditure	WDI  BATCH PULL	Health expenditures as percent of GDP, public	2015/07/14
SeriesGovtEdPub%GDP	Government	Expenditure	WDI  BATCH PULL	Educational expenditures (public) as percent of GDP	2015/07/14

Initializations

Defense

• Initialize defense expenditures using SeriesGovtMil%GDPSIPRI.
  • Source: SIPRI
  • Last Update in IFs: 2013/06/13 (data through 2012)
  • Most Recent Source Update: Exact date unknown; Data through 2015
  • Year Coverage: 1988-2015 (Consistent); 1957-1987 (May be inconsistent with current data)
  • Country Coverage: 172
  • Data Link:  Link
  • Source Definition: Link
  • “Where possible, SIPRI military expenditure data include all current and capital expenditure on:
    • (a) the armed forces, including peacekeeping forces;
    • (b) defense ministries and other government agencies engaged in defense projects;
      • Note: This would seem to indicate inclusion of the more “civilian” activities of defense departments
    • (c) paramilitary forces, when judged to be trained and equipped for military operations; and
    • (d) military space activities
  • Such expenditures should include:
    • (a) military and civil personnel, including retirement pensions of military personnel and social services for personnel;
    • (b) operations and maintenance;
    • (c) procurement;
    • (d) military research and development; and
    • (e) military aid (in the military expenditure of the donor country).
  • Civil defense and current expenditures on previous military activities, such as veterans' benefits, demobilization, conversion and weapon destruction are excluded.”
• Note: The data from 1957-1987 may have issues when compared over time with the more recent years. Caution will need to be taken should those years be imported into the IFs database. WDI data is derived from this source. SIPRI data is hosted on the WDI databank.

• If null, then use SeriesGovtMil%GDP
• Source: State Department – ACDA (Defunct)
• Last Update in IFs: Unknown
• Most Recent Source Update: Unavailable
• Year Coverage: N/A
• Country Coverage:  N/A
• Source Definition: Unavailable
• Note: The ACDA is no longer a functional office at the State Department, their data appears to no longer be hosted on any official department site. The newly created office AVC has created a similar dataset covering 2002-2015.

• If null estimate using GDPPCP: TbName$ = "GDP/Capita (PPP) Versus Govt Exp Mil as % of GDP (" & CStr(BaseYear) & ") - linear"
  • This equation is using: GDP/Capita (PPP) Versus Govt Exp Mil as % of GDP (2000) - linear

Series to potentially pull

AVC Dataset

• Source: State Department – ACV
• Last Update in IFs: N/A
• Most Recent Source Update: 2015
• Year Coverage: 2002-2012
• Country Coverage:  170
• Data Link: Link
• Source Definition: Link

NATO Definition: (Referred to in State Department Report; Their link doesn’t lead to a definition, however.)​

• ​​Excluded/Adjusted Data:
  • ​​(a) civilian-type expenditures of the defense ministry are excluded and military-type expenditures of other ministries are included; Note: SIPRI seems to include this
  • (b) grant military assistance is included in the expenditures of the donor country; and
  • (c) purchases of military equipment on credit are included at the time the debt is incurred, not at the time of payment. Note: SIPRI doesn't specify when it is included​

Note: While all of the countries covered in this dataset are included in the SIPRI data, this dataset includes more recent years for some countries (notably, North Korea)

Health

• Initialize public health expenditures using SeriesGovtHl%GDP
• Source: World Bank - WDI
• Original Source: WHO Global Health Expenditure Database
• Last Update in IFs: 2015/07/14
• Most Recent Source Update:
• Year Coverage: 1995-2014
• Country Coverage: 223 (includes some regional groupings; likely 194)
• WDI Data Link: Link
• Source Definition: Link
• “Public health expenditure consists of recurrent and capital spending from government (central and local) budgets, external borrowings and grants (including donations from international agencies and nongovernmental organizations), and social (or compulsory) health insurance funds.”
• Notes: Appears to be up to date with no issues.

• If null estimate using GDPPCP:  TbName$ = "GDP/Capita (PPP) Versus Govt Exp Hlth as % of GDP (" & CStr(BaseYear) & ") - log"
  • This equation is using: GDP/Capita (PPP) Versus Govt Exp Hlth as % of GDP (2000) - log

• Initialize private health expenditures using SeriesHealthExpPriv%Tot. If no data, but there is data on total health expenditures (SeriesHealthExpTot%GDP) then set private as the difference between total and public.
  • If no data on total health expenditure then estimate private using:

                    'Estimate Private
                    Call AnalFunc("Private Health Expenditures % of GDP (2012)", _
                    Array(CGDPPCP(ICount%), CEDYRSAGE25T(ICount%)), cVal, _
                    Array("GDP2005PCPPP(MOSTRECENT)/ 1000 (Log)", "EdYearsAge25(MOSTRECENT) (Linear)"))

• If no data on total expenditures, then it is the sum of private and public.

Education

• Initialize public spending on education using SeriesGovtEdPub%GDP. If null then use:                
  • Call XYTABL("GDP/Capita (PPP) Versus Govt Exp Educ as % of GDP (2002) - log", Amin(40, CGDPPCP(ICount%)), GExpEd(ICount%))
• Bound as 1.5% as a minimum. Set Uzbekistan to 3%.

R & D

• Initialize public R&D spending using SeriesR&DGovt%GDP (GExpRandD) and SeriesR&D%GDPWDI (ExpRandDTot).
• If ExpRandDTot is null then estimate using:                
  • TbName$ = "GDP/Capita (PPP) Versus R&D Total  as % of GNI (" & CStr(BaseYear) & ") - linear"
  • This equation is using: GDP/Capita (PPP) Versus R&D Total  as % of GNI (2000) - linear
• If GExpRandD is null then estimate using:                 TbName$ = "GDP/Capita (PPP) Versus Govt Exp R&D as % of GNP (" & CStr(BaseYear) & ") - linear"
  • This equation is using: GDP/Capita (PPP) Versus Govt Exp R&D as % of GNP (2000) - linear 

• Initialize central government health expenditures (GExpHlCen) using SeriesGovtCalcHealthCen%GDP
• Initialize total government health expenditures (GExpHlTot) using SeriesGovtCalcHealthTot%GDP
• Initialize central government education expenditures (GExpEdCen) using SeriesGovtCalcEdCen%GDP
• Initialize total government education expenditures (GExpEdTot) using SeriesGovtCalcEdTot%GDP
• Note: These initializations should probably be moved to health and education

Infrastructure

        '-- Infrastructure Expenditure : Build up from components calculated in DataInfra: for historical and regular base--

        'switch to turn infrastructure finance on and off

• Note: default setting of infrastructure finance is on (1) - changing this to off (0) in global parameters (IFs.mdb) means that infrastructure spending is initialized at zero. 
• If infrastructure finance is on (default) then sum up new construction and maintenance from all sub-types of infrastructure. Cap at 10% of GDP.

InfraOther

        'non-core or 'other' infrastructure as a % of GDP - using function estimated by DSR

•         GExpInfraOther(ICount%) = 1.8162 + 0.061 * Log(CGDPPCP(ICount%))

Output

• Read everything to GovConsumptionOutput

Cap Infra spending

• Private Function CalcInfraPubSpendCap

'procedure for capping infrastructure fund demand as a % of GDP;

'uses inverted V suggested by BBH