Wagner proposition in Nigeria: An econometric analysis
No Thumbnail Available
Date
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Description
Succinct exploration of Adolph Wagner's Proposition [WP] 1883 – Peacock and Wiseman 1961version was put to
the validation test in the study. At least, this time, for a quinaquina octo annis period, representing the life span of Nigeria. Specific suspicion of shocks from data from the world indicator and monetary authority necessitated the adoption of the ADF test with structural breaks, which came out positive at alternating integrating order. This
propelled the Autoregressive Distributed Lag ARDL model path having specified the lag selection automatically.
Even though the series showed significant association in the short run, and bi-directional causality, the result of
the Bound test – F-statistics (calculated) ¼ 3.42 falls below upper Bound I(0) ¼ 4.68 and lower bound I(1) ¼ 5.15
hence, invalidates the WP position in the long – run in Nigeria. This is an indication that a reduction in noneconomically viable and overlapping, funds-straining ministries/departments/agencies (MDA) is indispensable.
Keywords
HG Finance