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Wagner's Hypothesis in Time-Series and Cross-section Perspectives

Rati Ram

The Review of Economics and Statistics, 1987, vol. 69, issue 2, 194-204

Abstract: Internationally comparable data on income and government expenditure for 115 countries, covering the period 1950-80, are used to assess the validity of Wagner's hypothesis. Individual country time-series data and several intercountry cross sections are studied. Besides a tremendous diversity in the position for various countries, the results indicate that while there is support for the hypothesis in some time-series data sets, such support is lacking in most cross- section estimates. Much of the support for the hypothesis reported in many earlier studies, therefore, was probably due to either use of limited samples or inadequate data comparability across the observations studied. Copyright 1987 by MIT Press.

Date: 1987
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