Düzgün, Recep
June 2007
Ekev Academic Review;Summer2007, Vol. 11 Issue 32, p321
Academic Journal
This paper purposes to investigate whether aggregate government expenditures and private consumption are substitutes or complements during certain period. The paper applied on Turkey includes data and testing with time series for the period 1988:1-2005:4. Firstly theoretical foundations have explained after that, it is used an empirical test. Findings of the study indicate a significant degree of substitutability between government consumption and private consumption, while government investment complements private consumption. Furthermore, transfer expenditure substitutes private consumption.


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