Wargner's Law: a revision and a new empirical estimation

• Manuel Jaén García ^[1]
  1. [1] Universidad de Almería

     Universidad de Almería

     Almería, España

     
• Localización: Hacienda Pública Española / Review of Public Economics, ISSN 0210-1173, Nº 224, 2018, págs. 13-36
• Idioma: inglés
• DOI: 10.7866/hpe-rpe.18.1.1
• Enlaces
  • Texto completo
• Dialnet Métricas: 3 Citas
• Resumen

  • This study conducts an analysis of the various theoretical and practical problems related to Wagner’s Law on the growth in public spending. As a contribution, and with the intention of offering a new perspective in considering this principle, this paper puts Wagner´s Law to the test for the first time using public employment as a measure of public spending, which is in line with recommendations by Peacock and Scott (2000). In the empirical contrast we use unit root techniques and cointegration with structural breakpoints. The result obtained leads us to reject the law for Spain based on the belief that there are variables other than that GDP which influence public spending growth.

• Referencias bibliográficas
  • Abizadeh, S. and Gray, J. (1985), 'Wagner's law: A pooled time-series, cross-section comparison', National Tax Journal, 38(2):...
  • Akitoby, B., Clemens, B., Gupta, S. and Inchauste, G. (2006), 'Public spending, voracity and Wagner's law in developing countries',...
  • Andic, S. and Veverka, J. (1964), 'The growth of government expenditure in Germany since the unification', Finanzarchiv, Vol. 23:...
  • Bajo, O. (2007), 'El marco de la política fiscal en España. Sostenibilidad del déficit público e implicaciones de la UEM', ICE, 837:...
  • Beck, M. (1976), 'The expanding public sector: some contrary evidence', National Tax Journal, 29: 15-21
  • Beck, M. (1981), Government spending, trends and issues. New York, Praeger
  • Bird, R. M. (1971), 'Wagner's law of expanding state activity', Public Finance, 26(1): 1-26
  • Biswal, B., Dhawan, U. and Lee, H. (1999), 'Testing Wagner versus Keynes using disaggregated public expenditure data for Canada',...
  • Bjørnskov, C. and Potrafke, N. (2013), 'The size and scope of government in the US states: does party ideology matter?', International...
  • Burney, N. (2002), 'Wagner's hypothesis: Evidence from Kuwait using cointegration tests', Applied Economics, Vol 34(1): 49-58
  • Burney, N. and Mussalam, N. (1999), 'Wagner's law and public expenditure growth in Kuwait', OPEC Review, Jun.: 139-171
  • Chang, T. (2002), 'An econometric test of Wagner's law for six countries based in cointegration and error-correction modeling techniques',...
  • Chang, T. Liu, W. and Caudill, S. B. (2004), 'A re-examination of Wagner's law for ten countries based on cointegration and error-correction...
  • Friedman, M. (1978), 'The limitations of tax limitations', Policy Review, 5: 7-14
  • Gandhi, V. (1971), 'Wagner's law of public expenditure: Do recent cross-section studies confirm it?', Public Finance, Vol 26(1):...
  • Gemmell, N. (1993), 'Wagner's law and Musgravés hypotheses', in Gemmell (ed): The Growth of Public Sector'. E. Elgar P.L
  • Goffmann, I. J. (1968), 'On the empirical testing of Wagner's law: A technical note', Public Finance, 23(3): 359-64
  • Goffmann, I. J. and Maher D. J. (1971), 'The growth of public expenditures in selected developing nations: Six Caribbean countries',...
  • Gupta, S. (1967), 'Public expenditure and economic growth: A time series analysis', Public Finance, 22(4): 423-461
  • Henning, J. A. and Tussing, A. D. (1974), 'Income elasticity of the demand for public expenditures in the United States', Public Finance,...
  • Henrekson, M. (1990), 'Wagner's law', in Henrekson, M.: An Economic Analysis of Swedish Government Expenditure. UMI. Ann Arbor...
  • Henrekson, M. (1993), 'Wagner's law-a spurious relationship?', Public Finance, 48(2): 406-415
  • Herber, B. P. (1967 and 1975), Modern Public Finance, 2a y 3a edic. Homewood, III. Richard D. Irwin
  • Hondroyiannis, G. and Papapetrou, E. (1995), 'An examination of Wagner's Law for Greece: A cointegration analysis', Public Finance,...
  • Jaén, M. and Molina, A. (1997), 'Un estudio empírico de la ley de Wagner aplicado al caso español', Hacienda Pública Española, 141-142:...
  • Jaén, M. and Molina (1999), 'Evidencia empírica adicional sobre la ley de Wagner 1901-1992', Hacienda Pública Española, 148(1): 169-174
  • Jaén, M. (2011), 'Empirical Analysis of Wagner's Law for the Spain's Regions', International Journal of Academic Research...
  • Jaén, M. (2016), 'Public expenditure and deficit in Spain 1958-2014', El Semestre Económico, Vol 19(40): 17-51
  • Karagianni, S., Pempetzoglou, M. and Strikou, S. (2002), 'Testing Wagner's law for linear and no linear causality in the EU economies',...
  • Kuckuck, J. (2014), 'Testing Wagner's Law at different stages of economic development', Finanzarchiv/ Public Finance Analysis,...
  • Lamartina, S. and Zaghini, A. (2008), 'Increasing public expenditures: Wagner's law in OECD countries', CFS Working Paper Series...
  • Legrenzi, G. (2000), 'The long-run relationship between public sector size and economic growth: Income-elasticity and causality of the...
  • Magazzino, C. (2012 a), 'Wagner versus Keynes: Public Spending and National Income in Italy at a Disaggregated Level', Journal of...
  • Magazzino, C. (2012 b), 'Wagner's Law and Augmented Wagner's Law in EU-27. A Time-Series Analysis on Stationarity, Cointegration...
  • Magazzino, C., Giolli, L. and Mele, M. (2015), 'Wagner's Law and Peacock and Wiseman's Displacement Effect in European Union Countries:...
  • Mann, A. J. (1980), 'Wagner's law: An econometric test for Mexico, 1925-1976', National Tax Journal, 33(2): 189-201
  • Martin, A. and Lewis, W. A. (1956), 'Structures of public revenues and expenditures', Manchester School of Economic and Social Studies,...
  • Michas, N. A. (1975), 'Wagner's law of public expenditure: What is the appropriate measurement for a valid test?', Public Finance,...
  • Murthy, N. (1993), 'Further evidence of Wagner's law for Mexico: An application of cointegration analysis', Public Finance, 48(1):...
  • Musgrave, R. A. and Peacock, A (ed.) (1958), Classic in the theory of public finance, London, McMillan Press Ltd
  • Musgrave, R. A. (1970 and 1973), Fiscal systems, New Haven and London. Yale University Press
  • Narayan, P. K., Nielsen, I. and Smyth, R. (2008), 'Panel data, cointegration, causality and Wagner's law: empirical evidence from...
  • Oxley, L. (1994), 'Cointegration, causality and Wagneŕs law: A test for Britain 1870-1913', Scottish Journal of Political Economy,...
  • Peacock, A. and Wiseman, J. (1961 and 1967), The growth of public expenditure in the United Kingdom, London, George Allen and Unwin
  • Peacock, A. (1992), Public choice analysis in historical perspective, Cambridge University Press
  • Peacock, A. and Scott, A. (2000), 'The curious attraction of Wagner's law', Public Choice, 102(12): 1-17
  • Petry, F., Imbeau, L., Crête, J. and Clavet, M. (2000), 'Explaining the evolution of government size in the Canadian provinces', Public...
  • Pickering, A. and Rockey, J. (2013), 'Ideology and the size of US state government', Public Choice, 156: 443-465
  • Priesmeier, C. and Koester, G. (2012), 'Does Wagner's law ruin the sustainibility of German public finances?', Discussion Paper...
  • Pryor, F. L. (1968), Public Expenditures in Communist and Capitalist Nations, Homewood, Ill. Richard D. Irwin
  • Ram, R. (1987), 'Wagner's hypothesis in time-series and cross-section perspectives: evidence from 'real' data for 115 countries',...
  • Richter, C. and Paparas, D. (2013), 'The validity of Wagner's law in Greece during the last two centuries', Applied economics...
  • Thorn, R. (1967), 'The evolution of public finances during economic development', The Manchester School of Economic and Social Studies,...
  • Tim, H. (1961), 'Das gesetz der wachsenden staatsausgaben', Finanzarchiv, Heft, 2: 201-247
  • Wahab, M. (2004), 'Economic growth and government expenditure: evidence from a new test specification', Applied economics, 36: 2125-2135
  • Wagner, A. (1890), Finanzwissenchaft, 3a edition Leipzig in R.A. Musgrave and A.T. Peacock (eds.) (1958) Classics in the Theory of Public...
  • Williamson, J. G. (1961), 'Public expenditure and revenue: An international comparison', Manchester School of Economic and Social...