2019
DOI: 10.9734/sajsse/2019/v4i230124
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The Validity of Wagner’s Law in India: A Post-liberalisation Analysis

Abstract: Aims:The present study attempts to analyse the behavior of government expenditure in relation to national income using most appropriate advanced econometric techniques to test the Wagner's law of increasing State's activity in Indian scenario during the post-liberalisation period of 1988 to 2017.2 Results: The results of Vector Error Correction Model reveal that both the Gross Domestic Product and the urban population have a positive and statistically significant effect on government expenditure in the long-ru… Show more

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Cited by 6 publications
(5 citation statements)
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“…Whenever the time series data exhibit a mixture of I(0) and I(1), most investigators propose to apply ARDL modeling as the best approach to estimate the coefficients of the parameter included in the models [37] . To apply the ARDL approach, cointegration bounds test, model stability test, and variance error correction model (VECM) has to be conducted to test the presence of long-term cointegration, models' goodness of fit, presence of serial correlation, and model misspecification [37] .…”
Section: Results Of Preliminary Time Series Specification and Robustn...mentioning
confidence: 99%
“…Whenever the time series data exhibit a mixture of I(0) and I(1), most investigators propose to apply ARDL modeling as the best approach to estimate the coefficients of the parameter included in the models [37] . To apply the ARDL approach, cointegration bounds test, model stability test, and variance error correction model (VECM) has to be conducted to test the presence of long-term cointegration, models' goodness of fit, presence of serial correlation, and model misspecification [37] .…”
Section: Results Of Preliminary Time Series Specification and Robustn...mentioning
confidence: 99%
“…The test result disclosed that the variables used in this study are a mixture of I(0) and I(1). In case time series data exhibit a mixture of I(0) and I(1) researchers and econometricians recommend Cobb-Douglas or ARDL modeling as best approach Singh, 2019 andDushko, et al 2011). In order to employ ARDL approach, bounds test of integration, model stability test and variance error correction model (VECM) should be conducted to detect the presence of long-term cointegration (Sharma and Singh, 2019).…”
Section: Results Of the Time Series Unit Root Testmentioning
confidence: 99%
“…In case time series data exhibit a mixture of I(0) and I(1) researchers and econometricians recommend Cobb-Douglas or ARDL modeling as best approach Singh, 2019 andDushko, et al 2011). In order to employ ARDL approach, bounds test of integration, model stability test and variance error correction model (VECM) should be conducted to detect the presence of long-term cointegration (Sharma and Singh, 2019). In case of Cobb-Douglas production model similar tests would be carried out as that of ARDL model (Dushko, et al 2011).…”
Section: Results Of the Time Series Unit Root Testmentioning
confidence: 99%
“…Thus, the variables used in the study are a mixture of I(0) and I(1). In case time series data exhibit a mixture of I(0) and I(1) some researchers and econometricians recommend Cobb-Douglas or ARDL modeling as best approach Singh, 2019 andDushko, et al 2011). -6.12426 -3.19641 -13.78382 -3.19831 I(1)…”
Section: Results Of Unit Root Testsmentioning
confidence: 99%