TRENDS AND CYCLES IN THE COMPOSITION OF THE FEDERAL BUDGET, 1947–48

In this study, systematic movements in the composition of the Federal budget are studied, using a simple statistical structure which distinguishes trend, cyclical, and price-indexing phenomena. Using NIA data on budget expenditures and receipts, it is found that share movements on both sides of the budget are dominated by trends. Among expenditure categories, the shares of transfer programs show strong upward trends while the defense purchases share has beentrending strongly downward. On the revenue side, the shares represented by social insurance contributions and personal income taxes have been trending upward at the expense of corporateincome taxes and indirect taxes. Significant cyclical and price-indexing responsiveness is shown by several expenditure and revenue categories. A noteworthy finding is that the estimates show little evidence of structural change over 1947-1978, suggesting that the trend and otherforces found to be significant are not of recent origin but have been at work over the whole period.     

CONSUMERS AS COPRODUCERS OF PUBLIC SERVICES: SOME ECONOMIC AND INSTITUTIONAL CONSIDERATIONS

The concept of coproduction of public services has captured increased attention as a potential means of increasing the effectiveness and efficiency of local government. In this article we explore the concept of coproduction in an effort to sharpen the definition of that concept and add rigor to our understanding of the effects of coproduction in local service delivery and the processes by which coproductive activity occurs.