The Effect of National Income on Government'S Expenditures in the Context of the Median Voter Model in Iran

Public sector intervention in economic activity and understanding the decision of the public sector is the subject of many studies in the area of public finance. in this paper using the standard median voter theorem, the impact of national income on the changes of public expenditures in the economy of iran during 1982- 2014 experimentally was examined and analyzed. in this regard, the co-integration methods and multivariate var model is used with (ardl). the results of the estimation of specified model indicate that the amount of demand for public goods and services, income of the median voter and prices of public goods are cointegrated and there are long term equilibrium relation between them.

The effect of national income on government's expenditures in the context of the median voter model in Iran

Public sector intervention in economic activity and understanding the decision of the public sector is the subject of many studies in the area of public finance. In this paper using the standard median voter theorem, the impact of national income on the changes of public expenditures in the economy of Iran during 1982- 2014 experimentally was examined and analyzed. In this regard, the Co-integration methods and multivariate VAR model is used with (ARDL). The results of the estimation of specified model indicate that the amount of demand for public goods and services, income of the median voter and prices of public goods are cointegrated and there are long term equilibrium relation between them.