The Effect of Temporal Aggregation on the Test of Wagner's Law

DeLorme, Charles D,, Phillip Cartwright and Elke Kespohl

Public Finance = Finances publiques, 1988, vol. 43, issue 3, 373-87

Abstract: This paper applies the Granger-Sims causality framework to historical data from the United States, West Germany, and Great Britain to develop estimates of the causal ordering between government expenditures and national income. Based on these estimates, it is clear that when one tests the Wagnerian and Keynesian predilections with annual and quarterly data, different results are obtained because of the use of values of variables calculated for different units of time. These results suggest that studies attempting to test Wagner's law and the direction of causality implied by Keynesian macroeconomic models should recognize the temporal aggregation problem.

Date: 1988
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pfi:pubfin:v:43:y:1988:i:3:p:373-87

Access Statistics for this article

More articles in Public Finance = Finances publiques
Bibliographic data for series maintained by Christopher F. Baum ().