Testing Wagner’s Law and Keynesian Hypothesis in Selected Post‑Soviet Countries

Abbasov, J. A., & Aliyev, K. (2018). Testing Wagner’s Law and Keynesian Hypothesis in Selected Post‑Soviet Countries. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 66(5), 1227-1237.

11 Pages Posted: 31 Jul 2020

See all articles by Jeyhun Abbasov

Jeyhun Abbasov

Azerbaijan National Academy of Sciences

Khatai Aliyev

Azerbaijan State University of Economics (UNEC); Baku Engineering University

Date Written: 2018

Abstract

The aim of this research is to test Wagner’s law and Keynesian hypothesis in 9 Post‑Soviet countries–Estonia, Latvia, Lithuania, Uzbekistan, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, and Ukraine. For this purpose, long‑and short‑run causality between real per capita GDP and real per-capita government expenditures are estimated by employing ARDL modelling approach. Estimation results support validity of Wagner’s law for Latvia, Lithuania, Uzbekistan, Georgia, Kyrgyz Republic and Ukraine, and validity of Keynesian hypothesis for Estonia, Uzbekistan, Azerbaijan, Kyrgyz Republic, and Moldova in the long‑run. Meanwhile, research findings indicate strong bidirectional short‑run causality in all countries except Lithuania and Kyrgyz Republic in the short‑run.

Keywords: Wagner’s Law; Keynesian Hypothesis; Post-Soviet Countries; Long-Run Association; Short-Run Causality; ARDL Modeling Approach

JEL Classification: H11; H20; H61; H71

Suggested Citation

Abbasov, Ceyhun and Aliyev, Khatai, Testing Wagner’s Law and Keynesian Hypothesis in Selected Post‑Soviet Countries (2018). Abbasov, J. A., & Aliyev, K. (2018). Testing Wagner’s Law and Keynesian Hypothesis in Selected Post‑Soviet Countries. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 66(5), 1227-1237., Available at SSRN: https://ssrn.com/abstract=3643398

Ceyhun Abbasov

Azerbaijan National Academy of Sciences ( email )

Baku
Azerbaijan

Khatai Aliyev (Contact Author)

Azerbaijan State University of Economics (UNEC) ( email )

Istiglaliyyat street 6
Baku, AZ Az1001
Azerbaijan

Baku Engineering University ( email )

Hasan Aliyev str. 120
Khirdalan, Baku AZ 0101
Azerbaijan

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