Testing Wagner’s law versus the Keynesian hypothesis for GCC countries

Salah Nusair and Dennis Olson

Applied Economics, 2021, vol. 53, issue 12, 1395-1417

Abstract: This paper examines the relationship between real GDP and government spending for the six Gulf Cooperation Council (GCC) countries. Linear Granger causality tests in the time and frequency domains provide moderate support for Wagner’s law in four countries and weak support for the Keynesian model in two countries. In contrast, asymmetric nonlinear causality tests in the frequency domain support Wagner’s law in five countries, while some form of the Keynesian hypothesis is valid in all six GCC countries. Our results illustrate the importance of using nonlinear, asymmetric models to examine causal relationships.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2020.1832196 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:53:y:2021:i:12:p:1395-1417

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2020.1832196

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().