Long-term and short-term relationship between government expenditure and GDP in the EU15: cointegration approach

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F14%3A%230002713" target="_blank" >RIV/47813059:19520/14:#0002713 - isvavai.cz</a>

Result on the web

<a href="http://www.ekonomista.info.pl/?rok=2014@nr=6@lang=0@menu=0@t=1" target="_blank" >http://www.ekonomista.info.pl/?rok=2014@nr=6@lang=0@menu=0@t=1</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Long-term and short-term relationship between government expenditure and GDP in the EU15: cointegration approach

Original language description

This article deals with development and trends of government expenditure in the core European Union member states (EU15) in a period 1995-2010. The aim is to provide direct empirical evidence on cyclicality and the long-term and short-term relationship between government expenditure and GDP. Adjusted annual Eurostat data of GDP and government expenditure in compliance with the COFOG international standard are estimated. The Johansen cointegration test and the Error Correction Model are applied to the examining. Research confirms procyclical development of government expenditure functions on GDP; it means that governments do not use government expenditure as a countercyclical fiscal tool. On the contrary, findings verify existence of Wagner´s Law in theEU15 in selected period. However, the results document significant differences in importance of public sector and a priority of government expenditure functions in individual countries.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AH - Economics

OECD FORD branch

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Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2014

Confidentiality

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

Name of the periodical

Ekonomista

ISSN

0013-3205

e-ISSN

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Volume of the periodical

Neuvedeno

Issue of the periodical within the volume

6

Country of publishing house

PL - POLAND

Number of pages

18

Pages from-to

865-882

UT code for WoS article

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EID of the result in the Scopus database

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