PDF (Español (España))
FLIP
This journal is licensed by a Creative Commons Attribution License (CC BY-NC-SA 4.0) Attribution-Non Commercial 4.0 International. For the CC licenses, the principle isthe creative freedom. This system complements the copyright without opposing it, conscious of its importance in our culture. The content of the articles is the responsibility of each author, and does not compromise in any way, to the journal or the university. It allows the transmission and reproduction of titles, abstracts and full content, with academic, scientific, cultural ends, provided acknowledgment of the respective source. This work cannot be used for commercial purposes.
They journal does not charge authors for submission or publication.
Abstract
This paper presents empirical evidence on the relationship between public expenditure and economic growth, in Colombia for the period (1905- 2010) under the methodology know as times series, addressing two major approaches: endogeneity and exogeneity. The first states that spending is endogenous, procyclical, elastic against the product, while the second is considered exogenous and countercyclical. The first perspective is known in economic literature as Wagner´s Law, and the second follows a Keynesian behavior. However, it is important to note that under these two scenarios, it is possible to have a mixed approach, the characteristics of which are due to endogenous and countercyclical behavior of government spending to GDP. The results suggest that the series are not stationary, i.e. they are integrated of order one. For its part, the Johansen cointegration´s test indicates the existence of a long-term relationship between GDP and public expenditure. In addition, there is a strong support for the Wagner´s Law, because the direction of causality runs from GDP to public spending, and the elasticity coefficients are positive and significant.
Keywords:
References
Afzal, M., Abbas, Q. (2010). Wagner`s Law in Pakistan: Another Look. Journal of Economics and International Finance, 2, 12-19.
Avella, M. (primer semestre, 2009). El crecimiento del gasto público en Colombia, 1925- 2003, ¿Una visión descriptiva a la Wagner o a la Peacock y Wiseman? Revista de Economía Institucional, 11 (20), 83-117.
Baro, R. J. (1991). Economic Growth in a Cross Section of Countries. Quaterly Journal of Economics, 106(2), 407-43.
Bulacio, J. (2000). La Ley de Wagner y el gasto público en Argentina. Córdoba: Universidad Nacional de Tucumán.
Castroff, C., y Sarjanovich, M. V. (2006). La Ley de Wagner y el efecto Baumol. Un análisis para las provincias argentinas. Córdoba: Instituto de Economía y Finanzas, Universidad Nacional de Córdoba. Recuperado de http://www.aaep.org.ar/anales/works/works2006/Castroff_Sarjanovich.pdf
De Gregorio, J. (2007). Macroeconomía, teoría y política. Madrid: Editorial Pearson.
Dickey, D. & Fuller, W. A. (1979). Distribution of the Estimators for Autoregressive Time Series with a Unit Root. Journal of the American Statistical Association, 74(366), 427-431.
Engle, R. F. & Granger, C. W. (1987). Co-integration and Error Correction: Representation, Estimation and Testing. Econometrica, 55(2), 251-276.
Gandhi, V. P. (1971). La Ley de Wagner sobre los gastos públicos. ¿La confirman los recientes estudios de análisis por secciones transversales? Revista de Economía Política, 58, 75-92.
Goffman, I. J. (1968). On the Empirical Testing of Wagner`s Law: A Technical Note. Public Finance, 23(3), 359-369.
Frimpong, J. & Oteng-Abayie, E. F. (2009). Does the Wagner´s Hypothesis Matter in Developing Economies? Evidence from three West African Monetary Zone (WAMZ) Countries. American Journal of Economics and Business Administration, 1(2), 141-147.
Gupta, S. (1967). Public Expenditure and Economic Growth. A Time Series Analysis. Public Finance, 22(4), 423-461.
Granger, C. (1969). Investigating Causal Relations by Econometric Models and Cross- Spectral Methods. Econometrica, 37(3), 422-438.
Johansen, S. (1988). Statistical Analysis of Cointegration Vectors. J Econ Dyn Control, 12, 176-181.
Johansen, S. & Juselius, K. (1990). Maximum Likelihood Estimation and Inference on Cointegration with Applications for the Demand for Money. Oxf Bull Econ Stat, 52, 169-210.
Keynes, J. M. (1936). General Theory of Employment, Interest and Money. London: Macmillan.
Muhlis, B. & Cetintas, H. (2003). Causality between Public Expenditure and Economic Growth: The Turkish Case. Journal of Economic and Social research, 6(1), 53-72. Recuperado de http://ideas.repec.org/p/pra/mprapa/8576.html
Musgrave, R. A. (1969). Fiscal Systems. London: Yale University Press.
Lozano, I. (2009). Caracterización de la política fiscal en Colombia y Análisis de su postura frente a la crisis internacional. Borradores de Economía, 566, 31. Recuperado de http://www.banrep.gov.co/docum/ftp/borra566.pdf
Peacock, A. T. & Wiseman, J. (1967). The Growth of Public Expenditure in the United Kingdom (new edition). London: George Allen y Unwin Ltd.
Phillips, P. & Perron, P. (1988). Testing for a Unit Root in the Time Series Regression. Biometrika, 75, 335-346.
Sahni, B. S. & Singh, B. (1984). On the Causal Directions between National Income and Government Expenditure in Canada. Public Finance, 39(3), 359-393.
Singh, B. & Sahni, B. S. (1984). Causality between Public Expenditure and National Income. Rev. Econ. Stat, 66(4), 630-643.
Samudram, M., Nair, M. & Vaithilingam, S. (junio, 2009). Keynes and Wagner on Government Expenditures and Economic Development: The Case of a Developing Economy. Empirical Economics, 36(3), 697-712.
Wahab, M. (2000). Economic Growth and Government Expenditure: Evidence from a New Test Specification. Applied Economics, 2125-2135.
Wagner, A. (1994). There Extracts on Public Finance. En R. Musgrave & A. Peacock (Eds.), Classics in the Theory of Public Finance. London: Mc Millan.
Reference by
