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Voracity effect and Wagner's law in the PIIGS

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F12%3A%230002147" target="_blank" >RIV/47813059:19520/12:#0002147 - isvavai.cz</a>

  • Result on the web

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    Voracity effect and Wagner's law in the PIIGS

  • Original language description

    The paper provides direct empirical evidence on cyclicality and the short-term and long-term relationship between government expenditure and output in the PIIGS (Portugal, Ireland, Italy, Greece, Spain) in a period 1990-2010. We follow Akitoby et al. andapply Johansen cointegration test and the error correction model on annul data of GDP and government expenditure in compliance with the COFOG international standard. The government expenditure functions are procyclical in most PIIGS countries (68% casesin the sample). Output and government expendi-ture are cointegrated for at least six of the expenditure categories in every country and it implies a long-term relationship between government expenditure and output consistent with Wagner's law. Average value of long-run elasticity coefficients is 1.30 for all expenditure functions and 1.17 for total government expenditure. The values of the coefficients for the short-run relationship between expenditure and output confirm the voracity.

  • Czech name

  • Czech description

Classification

  • Type

    D - Article in proceedings

  • CEP classification

    AH - Economics

  • OECD FORD branch

Result continuities

  • Project

    <a href="/en/project/GAP403%2F11%2F2073" target="_blank" >GAP403/11/2073: Procyclicality of financial markets, asset price bubbles and macroprudential regulation</a><br>

  • Continuities

    P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Others

  • Publication year

    2012

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Article name in the collection

    Proceedings of the 30th International Conference on Mathematical Methods in Economics 2012

  • ISBN

    978-80-7248-779-0

  • ISSN

  • e-ISSN

  • Number of pages

    6

  • Pages from-to

    854-859

  • Publisher name

    Slezská univerzita v Opavě, Obchodně podnikatelská fakulta v Karviné

  • Place of publication

    Karviná

  • Event location

    Karviná

  • Event date

    Jan 1, 2012

  • Type of event by nationality

    WRD - Celosvětová akce

  • UT code for WoS article