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Private And Government Consumption In Transitional Economies: A Panel Data Analysis

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Author Info

  • Nicholas Apergis

    ()
    (Department of Financial & Banking Management, University of Piraeus)

  • Katerina Lyroudi

    ()
    (Department of Accounting and Finance, University of Macedonia)

  • Athanasios Sfetsos

    ()
    (Research Center Demokritos)

Abstract

This paper investigates the presence of the relationship between private and government consumption through panel data techniques. Using a panel from different transitional countries, from 1990 to 2003, it applies the panel cointegration and causality methodologies. The study finds statistical evidence for a long run relationship between the variables under study. The empirical findings do not support the Ricardian Equivalence, since government consumption affects private consumption negatively in both methodological approaches.

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Bibliographic Info

Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

Volume (Year): 33 (2008)
Issue (Month): 1 (June)
Pages: 113-131

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Handle: RePEc:jed:journl:v:33:y:2008:i:1:p:113-131

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Related research

Keywords: Private & Government Consumption; Ricardian Equivalence; Transitional Economies; Panel Data;

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Cited by:
  1. Waqas, Muhammad & Awan, Masood Sarwar, 2011. "Are Pakistani Consumers Ricardian?," MPRA Paper 35375, University Library of Munich, Germany.

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