期刊名称：Discussion Papers / University of Leicester, Department of Economics
出版年度：1999
出版社：Leicester
摘要：The purpose of this study is to analyse public expenditure growth in Northern Cyprus during the period 1977-1996. W e test the validity of W agner’s Law that there is a long-run tendency for public expenditure to grow relative to national incom e. This implies that public expenditure can be treated as an outcom e, or an endogenous factor, not a cause of growth in national incom e. Conversely, Keynesian proposition treats public expenditure as an exogenous factor, which could be utilised as a policy instrum ent. In the former approach, the causality runs from national incom e to public expenditure w hereas in the latter proposition, causality runs from public expenditure to national incom e. Utilising recent advances in cointegration and causality techniques, in the case of Northern Cyprus econom y, we find that there is a mixed evidence in support of W agner’s Law.
