The Central Government Debts, Welfare and Warfare Expenditure Nexus: The High Income Members of OECD and PVAR Analysis

Authors : Nilgün SERİM, Serdar KURT

Pages : 127-146

View : 17 | Download : 10

Publication Date : 2017-07-12

Article Type : Research Paper

Abstract :This study uses the fixed effect model to analyze possible effects of the military, educational and health expenditures, subsidies and other transfer charges on the central government debts, and the PVAR dynamic panel data model with separate OLS and GMM estimations to analyze causality relationships among the variables for 31 High Income OECD countries in 1999-2012 period. The fixed effect model showed that military and health expenditures have positive and negative effects on the debts respectively. According to dynamic causality and impulse response analyses, the other types of expenditures, except health expenditures, have causality relationships towards the debts. However, a bidirectional causality relation is found only between the debt and military expenditures
Keywords : Merkezi Devlet Borcu, Askeri Harcamalar, Merkezi Devlet Sağlık