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Dynamic Relationship between Government Spending and Private Consumption: Evidence from Cote d'Ivoire

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  • Yaya Keho

    (Ecole Nationale Supérieure de Statistique et d'Economie Appliquée (ENSEA) Abidjan, 08 BP 03 Abidjan 08, Côte d'Ivoire.)

Abstract

This study tests the dynamic relationship between government and household consumption in Cote d'Ivoire. The ARDL bounds test and Johansen approach are employed to annual data covering the period 1970 to 2016. The results reveal a long run relationship between household consumption, real GDP and government consumption. In the long run, private consumption and per capita income have positive effects on government consumption. However, in the short run there is no causal relationship between the variables.

Suggested Citation

  • Yaya Keho, 2019. "Dynamic Relationship between Government Spending and Private Consumption: Evidence from Cote d'Ivoire," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 197-202.
  • Handle: RePEc:eco:journ1:2019-01-24
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    References listed on IDEAS

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    Cited by:

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    3. Megbowon Ebenezer & Aderoju Samuel & Gbenga Peter Sanusi, 2021. "Effectiveness of fiscal federalism for poverty reduction in Nigeria: an analysis of federal and state governments’ expenditures," SN Business & Economics, Springer, vol. 1(9), pages 1-19, September.
    4. Monika Gupta & Shubhi Bansal, 2020. "Covid-19 Disruption of Middle-Class Monthly Household Income and Budget," International Journal of Economics and Financial Issues, Econjournals, vol. 10(6), pages 10-17.

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    More about this item

    Keywords

    Government spending; private consumption; GDP.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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