A Bayesian analysis of government expenditure in Nigeria
AbstractThis paper examines the productivity of government expenditure. It adopts a Barro-type production function to chart out a growth model that accounts for the productivity of government spending and also adopts Wagner’s hypothesis to account for endogeneity resulting from fiscal expansion. The model is estimated via the Bayesian technique using the data on Nigeria. The result shows that government expenditure was unproductive in Nigeria and that this conclusion is independent of the macroeconomic environment. Neither is it dependent on the external circumstances. The paper concludes that there is need for urgent budgetary evaluation and close monitoring of the government budget in Nigeria.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18244.
Date of creation: 18 Aug 2009
Date of revision:
Bayesian analysis; Government expenditure; Wagner’s hypothesis; Nigeria;
Find related papers by JEL classification:
- H5 - Public Economics - - National Government Expenditures and Related Policies
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
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