Economics at your fingertips  

Testing the Validity of Wagner's Law in Bolivia: A Cointegration and Causality Analysis with Disaggregated Data

Antonio Bojanic ()

Revista de Analisis Economico – Economic Analysis Review, 2013, vol. 28, issue 1, 25-45

Abstract: Nine versions of Wagner's law are examined employing annual time-series data on Bolivia for the period 1940-2010. The analysis is an advance over previous work in several ways. First, the stationarity properties and the order of integration of the data are investigated using the Augmented Dickey-Fuller and the Phillips and Perron tests. Second, the hypothesis of a long-run relationship between different types of government expenditures and income is tested employing the methodology of cointegration analysis. Third, Error Correction Models are utilized to determine the direction of causality between the variables of interest. Lastly, the study comprises a period of seventy years, the longest of its kind for Bolivia. Consistent with Wagner's proposition, bidirectional causality is found between income and government expenditures in six of the nine versions of the law.

Keywords: Wagner law; unit roots; cointegration; Error Correction models (search for similar items in EconPapers)
JEL-codes: C10 H50 O10 O54 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) (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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Revista de Analisis Economico – Economic Analysis Review is currently edited by Carlos Ponce

More articles in Revista de Analisis Economico – Economic Analysis Review from Universidad Alberto Hurtado/School of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Mauricio Tejada ().

Page updated 2022-08-27
Handle: RePEc:ila:anaeco:v:28:y:2013:i:1:p:25-45