The document analyzes theoretical and empirical models of public expenditure growth. It discusses three macro models: development models linking public investment to economic growth stages; Wagner's law that public spending rises with income; and Peacock-Wiseman's analysis of spending patterns related to taxation tolerance. It also examines a microeconomic model of demand and supply forces determining public services. The model identifies public outputs, production functions, and factors influencing expenditure including demand, production activities, quality, and input prices.