The Impact of Nonliner of Government Public Expenditures on Social Welfare (NARDL Approach)

Narges Ahmadvand (ahmadvand.4630@gmail.com), Mohammad Alizadeh (alizadeh_176@yahoo.com), Mohammad Hassan Fotros (fotros.fotros@basu.ac.ir) and Mahbubeh Delfan (delfan.m@lu.ac.ir)
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Narges Ahmadvand: Ph.D. Candidate of University lorestan,narges
Mohammad Alizadeh: Associate Professor of University of Lorestan
Mohammad Hassan Fotros: Professor of University of BuAli Sina
Mahbubeh Delfan: Asistant Professor of University of Lorestan

Quarterly Journal of Applied Theories of Economics, 2022, vol. 8, issue 4, 161-200

Abstract: The government tasks in regard to justice and increase social welfare is offering services and public finance, maintain order through enforce laws and good governance in the regulation of relations between governmental and public relations together with the help of the judicial system. The purpose of this study is to investigate the impact of government spending on public affairs and related chapters, including: legislation, public services, judiciary, financial services and science development on the Amartya Sen social welfare index during business cycles in the Iranian economy. In this regard, the nonlinear self-explanatory model with wide intervals (NARDL) has been used to estimate time series data during the period of 1973-2019. The results show that in Iran, the positive shock of government spending in the science, legislative and public development chapters during business cycles has increased social welfare and in the judicial season decreased social welfare. The negative shock of government expenditures in public affairs and legislative, public and financial services chapters during business cycles and judicial chapter in recesion periods have significantly increased social welfare, significantly. Also, the negative shock of government expenditures in the science development chapter during recesion and boom, respectively, has increased and decreased Social welfare significantly. Thus, government Expenditure on public affairs and related sub-chapters during business cycles has had asymmetric effects on social welfare

Keywords: Public Affairs; Business Cycles; Amartya Sen Social Welfare Index; NARDL (search for similar items in EconPapers)
JEL-codes: C22 D63 O40 (search for similar items in EconPapers)
Date: 2022
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