Application of Bootstrap Simulation and Asymmetric Causal Approach to Fiscal Deficit-Inflation Nexus

Q2 Economics, Econometrics and Finance

Global Journal of Emerging Market Economies Pub Date : 2020-05-01 DOI:10.1177/0974910120919021

Clement Olalekan Olaniyi

引用次数: 7

Abstract

This paper investigates the symmetric and asymmetric relationship between fiscal deficits and inflation in Nigeria within the context of bootstrap simulations with leverage adjustments using the quarterly frequency data from 1981Q1 to 2016Q4. The findings reveal that there is neither symmetric nor asymmetric causality between fiscal deficits and inflation in Nigeria. This implies that the fiscal deficits in Nigeria are not inflationary; and also, that persistent double-digit inflation rates are not the causal agents spurring perennial increase in fiscal deficits in Nigeria. This study, therefore, concludes that fiscal deficits could be used to stimulate output level in Nigeria without fueling inflationary spiral in the economy. JEL Classification: C32, E17

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自举模拟和非对称因果方法在财政赤字-通胀关系中的应用

本文利用1981年第一季度至2016年第四季度的季度频率数据，在杠杆调整的bootstrap模拟背景下，研究了尼日利亚财政赤字与通货膨胀之间的对称和非对称关系。研究结果表明，尼日利亚财政赤字与通货膨胀之间既不存在对称因果关系，也不存在非对称因果关系。这意味着尼日利亚的财政赤字不会导致通胀;此外，持续的两位数通胀率并不是导致尼日利亚财政赤字持续增长的原因。因此，本研究得出结论，财政赤字可以用来刺激尼日利亚的产出水平，而不会加剧经济中的通货膨胀螺旋。JEL分类:C32, E17

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Global Journal of Emerging Market Economies Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)

CiteScore

2.70

自引率

0.00%

发文量

期刊介绍： Global Journal of Emerging Market Economies is a peer-reviewed journal. The aim of the journal is to provide an international platform for knowledge sharing, discussion and networking on the various aspects related to emerging market economies through publications of original research. It aims to make available basic reference material for policy-makers, business executives and researchers interested in issues of fundamental importance to the economic prospects and performance of emerging market economies. The topics for discussion are related to the following general categories: D. Microeconomics E. Macroeconomics and Monetary Economics F. International Economics G. Financial Economics H. Public Economics I. Health, Education, and Welfare J. Labor and Demographic Economics L. Industrial Organization O. Economic Development, Innovation, Technological Change, and Growth Q. Agricultural and Natural Resource Economics • Environmental and Ecological Economics R. Urban, Rural, Regional, Real Estate, and Transportation Economics Additionally, the journal would be most interested to publish topics related to Global Financial Crisis and the Impact on Emerging Market Economies Economic Development and Inclusive Growth Climate Change and Energy Infrastructure Development and Public Private Partnerships Capital Flows to and from Emerging Market Economies Regional Cooperation Trade and Investment and Development of National and Regional Financial Markets The Belt and Road Initiative.