Article 2024 · 0 citations

Wagner's Law and Keynes Hypothesis: Empirical Evidence for the Turkish Economy

Oztaskin, Hasan Serkan, Bedir Kara, Serap

Abstract

Due to its economic, social and political importance, the public expenditure-growth relationship has long been a subject of debate. The validity of the relationship discussed in the context of Wagner's Law and Keynes Hypothesis in Turkey is tested using annual data for the period 1994-2022. Firstly, the stationarity of the series is analyzed using ADF and Narayan and Popp (2010) unit root tests and then the existence of cointegration relationship is investigated using Maki (2012) test. Finally, cointegration coefficients are estimated using the FMOLS method. In line with the findings, it can be said that both Wagner's Law and Keynes Hypothesis are valid for the Turkish economy, but when the slope coefficients are evaluated, the effect of the change in income on public expenditures is more pronounced.

Keywords

Wagner's Law Keynes Hypothesis Time Series Turkey GOVERNMENT EXPENDITURE NATIONAL-INCOME CROSS-SECTION TIME-SERIES GROWTH TESTS COINTEGRATION VALIDITY MODELS STATE

WoS Categories

Business, Finance

Sustainable Development Goals

Industry, Innovation and Infrastructure No Poverty Decent Work and Economic Growth 10 Reduced Inequality

Citation

Journal: MALIYE DERGISI
Year: 2024
Issue: 187
Pages: 75-100
ISSN: 1300-3623
WoS UID: WOS:001545611000004