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Article
Publication date: 9 November 2020

Noha Hesham Ghazy, Hebatallah Ghoneim and Dimitrios Paparas

One of the main theories regarding the relationship between government expenditure and gross domestic product (GDP) is Wagner’s law. This law was developed in the late-19th…

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Abstract

Purpose

One of the main theories regarding the relationship between government expenditure and gross domestic product (GDP) is Wagner’s law. This law was developed in the late-19th century by Adolph Wagner (1835–1917), a prominent German economist, and depicts that an increase in government expenditure is a feature often associated with progressive states. This paper aims to examine the validity of Wagner’s law in Egypt for 1960–2018. The relationship between real government expenditure and real GDP is tested using three versions of Wagner’s law.

Design/methodology/approach

To test the validity of Wagner in Egypt, law time-series analysis is used. The methodology used in this paper is: unit-root tests for stationarity, Johansen cointegration approach, error-correction model and Granger causality.

Findings

The results provide strong evidence of long-term relationship between GDP and government expenditure. Moreover, the causal relationship is found to be bi-directional. Hence, this study provides support for Wagner’s law in the examined context.

Research limitations/implications

It should be noted, however, that there are some limitations to this study. For instance, in this paper, the government’s size was measured through government consumption expenditure rather than government expenditure due to data availability, which does not fully capture the government size. Moreover, the data available was limited and does not fully cover the earliest stages of industrialization and urbanization for Egypt. Furthermore, although time-series analysis provides a more contextualized results and conclusions, the obtained conclusions suffer from their limited generalizability.

Originality/value

This paper aims to specifically make a contribution to the empirical literature for Wagner’s law, by testing the Egyptian data using time-series econometric techniques for the longest time period examined so far, which is 1960–2018.

Details

Review of Economics and Political Science, vol. 6 no. 2
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 14 August 2020

F.J. Farsana, V.R. Devi and K. Gopakumar

This paper introduces an audio encryption algorithm based on permutation of audio samples using discrete modified Henon map followed by substitution operation with keystream…

1583

Abstract

This paper introduces an audio encryption algorithm based on permutation of audio samples using discrete modified Henon map followed by substitution operation with keystream generated from the modified Lorenz-Hyperchaotic system. In this work, the audio file is initially compressed by Fast Walsh Hadamard Transform (FWHT) for removing the residual intelligibility in the transform domain. The resulting file is then encrypted in two phases. In the first phase permutation operation is carried out using modified discrete Henon map to weaken the correlation between adjacent samples. In the second phase it utilizes modified-Lorenz hyperchaotic system for substitution operation to fill the silent periods within the speech conversation. Dynamic keystream generation mechanism is also introduced to enhance the correlation between plaintext and encrypted text. Various quality metrics analysis such as correlation, signal to noise ratio (SNR), differential attacks, spectral entropy, histogram analysis, keyspace and key sensitivity are carried out to evaluate the quality of the proposed algorithm. The simulation results and numerical analyses demonstrate that the proposed algorithm has excellent security performance and robust against various cryptographic attacks.

Details

Applied Computing and Informatics, vol. 19 no. 3/4
Type: Research Article
ISSN: 2634-1964

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