Evidence of Wagner's law from Indian states

Seema Narayan (), Badri Rath and Paresh Narayan ()

Economic Modelling, 2012, vol. 29, issue 5, 1548-1557

Abstract: In this paper, we test for Wagner's law for 15 Indian states. We consider nine panels of states based on geography and level of economic development. Using panel unit-root, panel-cointegration, and panel-Granger causality analysis, we unravel strong evidence of Wagner's law. However, we find that the Wagner's law relationship is consumption rather than capital expenditure driven. This is a fresh revelation and our results are robust to different model specifications.

Keywords: Wagner's Law; Indian states; Unit root; Cointegration; Panel data; Heterogeneous (search for similar items in EconPapers)
JEL-codes: C23 E62 H72 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:5:p:1548-1557

DOI: 10.1016/j.econmod.2012.05.004

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