A METHODOLOGICAL PROBLEM IN THE SOCIO-ECONOMIC INTERPRETATION OF STATE SPENDING.

The article presents that the broad implications of the socio-economic interpretation which simultaneously emphasizes environmental determinants and de-emphasizes political factors demand a serious evaluation of the methodology on which the interpretation is based. Before one fully accept this view of policy making, it must be certain that the environment is a main determinant of outputs. From a methodological point of view the socio-economic interpretation involves quantitative analysis, most particularly correlational analysis.