True or False: Emprical Evidence on Wagner's Law from Cyprus

Bu çalışma Kuzey Kıbrıs'da 1977-2001 dönemindeki GDP ve toplam kamu harcamalarının farklı kalemleri arasındaki ilişkiyi inceleyerek Wagner Kanununu test etmeyi amaçlamaktadır. Kullanılan verilerin geçerliliğini test etmek için Philips-Perron testleri; GDP ile kamu harcamalarının farklı bileşenleri arasındaki uzun dönemli ilişkileri belirlemek için de Johansen'in maksimum olasılık testi kullanılmıştır. Kısa dönemli sebep - sonuç ilişkileri içinse Granger testi kullanılmıştır.

The paper attempts to test Wagner's law by examining relationships between GDP and total public expenditure as well as its various components for North Cyprus during the period 1977-2001. Philips-Perron tests are used to check the stationary properties of all series. The Johansen full information maximum likelihood method is used to identify the long-run relationships between GDP and various components of public expenditure. In the case of long run relationships, the Granger bivariate procedure is used to identify the direction of causality. Where variables are not cointegrated, Granger's causality technique is employed to test the direction of short run causation.

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