Cointegration, causality and Wagner’s law with disaggregated data: evidence from Turkey, 1968-2004

Yakup Kucukkale () and Rahmi Yamak

MPRA Paper from University Library of Munich, Germany

Abstract: Recent developments in time series analysis have encouraged the economists to re-examine their findings about the Wagner’s Law. That is why, the aggregation in public expenditures may lead some contradictions, disaggregated analyses should perform to have more consistent results. In this paper, the cointegration and causal relationships have re-examined between public expenditure and economic growth by using disaggregated annual data over the period of 1968-2004 for Turkish economy. Obtained results show that there is no common trend between these variables in the long-run. In the short-run, however, there is a strong and bidirectional causal relationship between public investment expenditures and economic growth.

Keywords: Wagner's Law; Cointegration; Causality; disaggregated data; public expenditures; economic growth (search for similar items in EconPapers)
JEL-codes: B22 C12 E62 O23 (search for similar items in EconPapers)
Date: 2012-02-19
New Economics Papers: this item is included in nep-ara, nep-fdg and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36894

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