Wagner's law and augmented Wagner's law in EU-27. A time-series analysis on stationarity, cointegration and causality

Cosimo Magazzino

MPRA Paper from University Library of Munich, Germany

Abstract: The relationship between public expenditure and aggregate income has long been debated in economic literature. According to Wagner, expenditure is an endogenous factor or an outcome. On the other hand, Keynes considered public expenditure as an exogenous factor to be used as a policy instrument to in-fluence growth. “Augmented” version of Wagner’s Law, where public deficit appears as further explanatory variable, is also investigated. The aim of this paper is to assess empirical evidence of these hypotheses in EU-27, for the period 1970-2009. After a brief introduction, a survey of the economic literature on this issue is offered, before evaluating some specifications of “Wagner’s Law” due to several researchers. Few notes on the empirical evidence’ comparisons conclude the paper.

Keywords: Wagner’s law; public expenditure; EU-27; correlation; unit root tests; cointegration analysis; causality (search for similar items in EconPapers)
JEL-codes: C32 C33 E60 H50 H60 N44 (search for similar items in EconPapers)
Date: 2010-10-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/26668/1/MPRA_paper_26668.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:26668

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().