An econometric test of Wagner's law for six countries based on cointegration and error-correction modelling techniques
AbstractThe present study empirically examined five different versions of Wagner's law by employing annual time-series data on six countries over the period 1951-1996. Three countries are part of the emerging industrialized countries of Asia (South Korea, Taiwan, Thailand) and three are industrialized countries (Japan, USA, and the United Kingdom). The analysis is an advance over previous work in two ways: first, the stationarity propertities of the data and the order of integration of the data are empirically investigated using the Augmented Dickey-Fuller (ADF) and the Kwiatkowski et al. (Journal of Econometrics, 1, 1992) (KPSS), tests and second, the hypothesis of a long-run relationship between income and government spending is tested using bivariate cointegrated systems and employing the methodology of cointegration analysis as suggested by Johansen (Journal of Economic Dynamics and Control, 12, 1988) and Johansen and Juselius (Oxford Bulletin of Economics and Statistics, 52, 1990). The results indicate that there exist a long-run relationship between income and government spending for sample countries studied with the exception of Thailand. Furthermore, it is found that the results concerning the validity of Wagner's Law are also held for selected countries studied with the exception of Thailand.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 34 (2002)
Issue (Month): 9 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Christoph A. Schaltegger & Benno Torgler, 2004.
"Growth Effects of Public Expenditure on the State and Local Level: Evidence from a Sample of Rich Governments,"
CREMA Working Paper Series
2004-16, Center for Research in Economics, Management and the Arts (CREMA).
- Christoph Schaltegger & Benno Torgler, 2006. "Growth effects of public expenditure on the state and local level: evidence from a sample of rich governments," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1181-1192.
- Kähler, Jürgen, 2009. "Die Messung der Agglomeration als latente Variable und ihr Einfluss auf Staatsausgaben," Forschungs- und Sitzungsberichte der ARL: Aufsätze, in: Öffentliche Finanzströme und räumliche Entwicklung, pages 239-264 Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften.
- Manuel Jaen-Garcia, 2011. "Empirical Analysis of Wagner’s Law for the Spain’s Regions," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 1(1), pages 1-17, November.
- Saten Kumar & Don J. Webber & Scott Fargher, 2012.
"Wagner's Law revisited: cointegration and causality tests for New Zealand,"
Taylor & Francis Journals, vol. 44(5), pages 607-616, February.
- Saten Kumar & Don J. Webber & Scott Fargher, 2009. "Wagner’s Law Revisited: Cointegration and Causality tests for New Zealand," Working Papers 0917, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
- Dimitrios Sideris, 2007. "Wagner's Law in 19th Century Greece: A Cointegration and Causality Analysis," Working Papers 64, Bank of Greece.
- Paresh Kumar Narayan & Ingrid Nielsen & Russell Smyth, 2006.
"Panel Data, Cointegration, Causality And Wagner'S Law: Empirical Evidence From Chinese Provinces,"
Monash Economics Working Papers
01/06, Monash University, Department of Economics.
- Narayan, Paresh Kumar & Nielsen, Ingrid & Smyth, Russell, 2008. "Panel data, cointegration, causality and Wagner's law: Empirical evidence from Chinese provinces," China Economic Review, Elsevier, vol. 19(2), pages 297-307, June.
- Herrera, Santiago & Pang, Gaobo, 2005. "Efficiency of public spending in developing countries : an efficiency frontier approach," Policy Research Working Paper Series 3645, The World Bank.
- V. Chandran Govindaraju & Ramesh Rao & Sajid Anwar, 2011. "Economic growth and government spending in Malaysia: a re-examination of Wagner and Keynesian views," Economic Change and Restructuring, Springer, vol. 44(3), pages 203-219, August.
- Brückner, Markus & Chong, Alberto & Gradstein, Mark, 2012. "Estimating the permanent income elasticity of government expenditures: Evidence on Wagner's law based on oil price shocks," Journal of Public Economics, Elsevier, vol. 96(11), pages 1025-1035.
- Magazzino, Cosimo, 2010. "Wagner's law and augmented Wagner's law in EU-27. A time-series analysis on stationarity, cointegration and causality," MPRA Paper 26668, University Library of Munich, Germany.
- Alfonso Arpaia & Alessandro Turrini, 2008. "Government expenditure and economic growth in the EU: long-run tendencies and short-term adjustment," European Economy - Economic Papers 300, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Chiung-Ju Huang, 2006. "Government Expenditures In China And Taiwan: Do They Follow Wagner¡¯S Law?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 31(2), pages 139-148, December.
- Alimi, R. Santos, 2013. "Testing Augmented Wagner’s Law for Nigeria Based on Cointegration and Error-Correction Modelling Techniques," MPRA Paper 52319, University Library of Munich, Germany.
- Santiago Herrera & Gaobo Pang, 2006. "How Efficient is Public Spending in Education?," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.