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Increasing Public Expenditure
[Full Text]
AUTHOR(S)
Ammar Ben Zaed
KEYWORDS
public spending, explanatory hypotheses.
ABSTRACT
This article aims to analyze and interpret the phenomenon of increased public expenditures, and test explanatory theories, as well as to analyze Abstract the relationship between public spending and GDP in the short and long term, where you see the Wagner hypothesis that causal heading of GDP to government spending, while there is a causal relationship analysis positive trending of government spending to GDP according to the Keynesian hypothesis, in this study will be used descriptive analytical method to validate these hypotheses. Results in the short and long term made it clear that there is a difference in the outcome of Applied Studies, where we find that each supports a relationship Wagner, in the sense that the causal trending of real GDP to government spending, and more precisely to increase the economic growth lead to increased aggregate demand, which leads in turn increasing the need to increase government spending and to increase the resources available to the government sector, to finance the increase in spending by the additional resources resulting from the economic growth, while others opines opposes the existence of the relationship.
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