Private and Government Consumption in Transitional Economies: A Panel Data Analysis

26 Pages Posted: 1 Jun 2007

See all articles by Nicholas Apergis

Nicholas Apergis

University of Piraeus; University of Derby

Katerina Lyroudi

University of Macedonia

Date Written: December 2006

Abstract

This paper investigates the presence of the relationship between private and government consumption through panel data techniques. Using a panel from different transitional countries, from 1990 to 2003, it applies the panel cointegration and causality methodologies. The study finds statistical evidence for a long run relationship between the variables under study. The empirical findings do not support the Ricardian Equivalence, since government consumption affects private consumption negatively in both methodological approaches.

Keywords: Private & government consumption, Ricardian Equivalence, Transitional Economies, Panel Data

JEL Classification: E21, H62, P20, C33

Suggested Citation

Apergis, Nicholas and Lyroudi, Katerina, Private and Government Consumption in Transitional Economies: A Panel Data Analysis (December 2006). Available at SSRN: https://ssrn.com/abstract=990248 or http://dx.doi.org/10.2139/ssrn.990248

Nicholas Apergis (Contact Author)

University of Piraeus ( email )

Karaoli and Dimitriou 80
80 KARAOLI & DIMITRIOU STREET
Piraeus, Attiki 18534
Greece

University of Derby ( email )

Kedleston Road
Derby, Derbyshire DE22 1GB
United Kingdom

Katerina Lyroudi

University of Macedonia ( email )

156 Egnatia St.
P.O. 1591
Thessaloniki, 54006
Greece

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