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Is the Relationship Between Government Spending and Private Consumption in Egypt Symmetric?
Margin: The Journal of Applied Economic Research Pub Date : 2020-07-31 , DOI: 10.1177/0973801020920096
Imadeddin Ahmed Almosabbeh 1
Affiliation  

The aim of this study, using Egyptian data from 1970 to 2016, is to explore the relationship between government spending and private consumption spending and to understand whether the relationship between the two is symmetric. The study uses the autoregressive distributed lag (ARDL) approach to explore a cointegration relationship between the two variables, and the nonlinear autoregressive distributed lag (NARDL) approach to test the hypothesis of a symmetric relationship between the two variables. By applying the ARDL approach, the study concludes that the effect of government spending on consumption spending is not significant in the long term. By applying the NARDL approach, the study concludes that: the hypothesis of the presence of a symmetric relationship is not accepted, there is a crowding-out relationship from the positive shocks of government spending and the substitutability coefficient between the two types of spending is 0.8699.

JEL Classification: E12, E21, F62, H50



中文翻译:

埃及政府支出与私人消费之间的关系是否对称?

这项研究的目的是利用1970年至2016年的埃及数据,探讨政府支出与私人消费支出之间的关系,并了解两者之间的关系是否对称。该研究使用自回归分布滞后(ARDL)方法来探索两个变量之间的协整关系,并使用非线性自回归分布滞后(NARDL)方法来检验两个变量之间的对称关系的假设。通过应用ARDL方法,研究得出结论,从长远来看,政府支出对消费支出的影响并不显着。通过应用NARDL方法,该研究得出的结论是:对称关系存在的假设不被接受,

JEL分类:E12,E21,F62,H50

更新日期:2020-07-31
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