Macroeconomic Volatility and Government Consumption Expenditure Implication for Public Welfare A Dynamic Macroeconometric Stochastic Model

Simple item page
dc.contributor.authorBanuso, F.B.
dc.contributor.authorOdior, E.S.O.
dc.date.accessioned2020-03-28T16:32:53Z
dc.date.available2020-03-28T16:32:53Z
dc.date.issued2012-02
dc.description.abstractThis paper addresses the effects of macroeconomic volatility on government consumption expenditure (GCE) in Nigeria well as the burdens and challenges it has been imposing on public welfare. Methodologically, a dynamic macroeconometric stochastic model was used to analysis the nature of the impacts, where GCE is presumed to depend upon changes in various indicators of macroeconomic performances. We empirically mode the relationship between GCE and the macroeconomy with a hybrid model that employs a reduced form coefficients of simultaneous equation models, to capture the dynamic interactions among the data and a structural economic model to describe the contemporaneous relationship between the variables. The Structural Auto-Regression (SVAR) process including the GCE, real exchange rate, general price level (inflation rate), unemployment rate and debt service obligation, is estimated over the period 1980-2008. The model ascertained the extent in which volatility of the macroeconomics does lead to a decline in GCE. We find that, the GCE response to structural one innovation appears to be greater in inflation than other endogenous and exogenous variables that is, an economic shock to inflation effect is stronger on the GCE at longer horizon. Also, inflation innovations play a larger role in explaining GCE forecast error variance in the short run than they do in the long run and this generates negative net effects on public welfare in the short run than long run.en_US
dc.identifier.citationBanuso, F.B. & Odior, E.S. (2012), “Macroeconomic Volatility and Government Consumption Expenditure: Implication for Public Welfare, A Dynamic Macroeconometric Stochastic’ Model, International Journal of Economics and Finance (IJEF), Published by Canadian Center of Science and Education, Vol. 4, No. 2, Canada, Pp, 140 – 151en_US
dc.identifier.urihttps://ir.unilag.edu.ng/handle/123456789/8166
dc.language.isoenen_US
dc.publisherInternational Journal of Economics and Financeen_US
dc.relation.ispartofseries4;2
dc.subjectMacroeconomic volatilityen_US
dc.subjectCGEen_US
dc.subjectMacroeconometric Stochastic Modelen_US
dc.subjectNigeriaen_US
dc.titleMacroeconomic Volatility and Government Consumption Expenditure Implication for Public Welfare A Dynamic Macroeconometric Stochastic Modelen_US
dc.typeArticleen_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
16 Macroeconomic Volatility and Government Consumption.pdf
Size:
272.75 KB
Format:
Adobe Portable Document Format
Description:
Main Article
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
Economics-Scholarly Publications