This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Wagner's Law in 19th Century Greece: A Cointegration and Causality Analysis

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Dimitrios Sideris () (Bank of Greece and University of Ioannina)
Abstract

The validity of Wagner’s law, which states that the growth of public expenditure can be explained as a result of the increase in economic activity, is tested for Greece during the period 1833-1938. This represents a period of growth, industrialisation and modernisation of the economy, conditions which should be conducive to Wagner’s law. In addition, the long data sample ensures the reliability of the results in terms of economic significance and statistical inference. Cointegration analysis provides positive evidence for the existence of a long-run relationship between government expenditure and national income, and Granger causality tests indicate that causality runs from income to government expenditure. The results support Wagner’s hypothesis, in line with other empirical studies examining the validity of the hypothesis in 19th century economies.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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.

File URL: http://www.bankofgreece.gr/BogEkdoseis/Paper200764.pdf
File Format: application/pdf
File Function: Full Text
Download Restriction: no

Publisher Info
Paper provided by Bank of Greece in its series Working Papers with number 64.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 19 pages
Date of creation: Dec 2007
Date of revision:
Handle: RePEc:bog:wpaper:64

Contact details of provider:
Web page: http://www.bankofgreece.gr
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Christina Tsochatzi).

Related research
Keywords: Public expenditure; Wagner’s law; cointegration.;

Other versions of this item:

Find related papers by JEL classification:
H1 - Public Economics - - Structure and Scope of Government
H5 - Public Economics - - National Government Expenditures and Related Policies
N43 - Economic History - - Government, War, Law, and Regulation - - - Europe: Pre-1913
N44 - Economic History - - Government, War, Law, and Regulation - - - Europe: 1913-

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ansari, M I & Gordon, Daniel V & Akuamoah, C, 1997. "Keynes versus Wagner: Public Expenditure and National Income for Three African Countries," Applied Economics, Taylor and Francis Journals, vol. 29(4), pages 543-50, April. [Downloadable!] (restricted)
  2. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June. [Downloadable!] (restricted)
  3. Massimo Florio & Sara Colautti, 2005. "A logistic growth theory of public expenditures: A study of five countries over 100 years," Public Choice, Springer, vol. 122(3), pages 355-393, March. [Downloadable!] (restricted)
  4. Murthy, N R Vasudeva, 1993. "Further Evidence of Wagner's Law for Mexico: An Application of Cointegration Analysis," Public Finance = Finances publiques, , vol. 48(1), pages 92-96.
  5. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October. [Downloadable!] (restricted)
  6. Peacock, Alan & Scott, Alex, 2000. " The Curious Attraction of Wagner's Law," Public Choice, Springer, vol. 102(1-2), pages 1-17, January. [Downloadable!] (restricted)
  7. Tsangyao Chang & WenRong Liu & Steven B. Caudill, 2004. "A re-examination of Wagner's law for ten countries based on cointegration and error-correction modelling techniques," Applied Financial Economics, Taylor and Francis Journals, vol. 14(8), pages 577-589, May. [Downloadable!] (restricted)
  8. Islam, Anisul M, 2001. "Wagner's Law Revisited: Cointegration and Exogeneity Tests for the USA," Applied Economics Letters, Taylor and Francis Journals, vol. 8(8), pages 509-15, August. [Downloadable!] (restricted)
  9. Kolluri, Bharat R & Panik, Michael J & Wahab, Mahmoud S, 2000. "Government Expenditure and Economic Growth: Evidence from G7 Countries," Applied Economics, Taylor and Francis Journals, vol. 32(8), pages 1059-68, June. [Downloadable!] (restricted)
  10. John Loizides & George Vamvoukas, 2005. "Government expenditure and economic growth: Evidence from trivariate causality testing," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 125-152, May. [Downloadable!]
  11. Chang, Tsangyao, 2002. "An Econometric Test of Wagner's Law for Six Countries Based on Cointegration and Error-Correction Modelling Techniques," Applied Economics, Taylor and Francis Journals, vol. 34(9), pages 1157-69, June. [Downloadable!] (restricted)
  12. Ahsan, Syed M & Kwan, Andy C C & Sahni, Balbir S, 1996. "Cointegration and Wagner's Hypothesis: Time Series Evidence for Canada," Applied Economics, Taylor and Francis Journals, vol. 28(8), pages 1055-58, August. [Downloadable!] (restricted)
  13. Chletsos, Michael & Kollias, Christos, 1997. "Testing Wagner's Law Using Disaggregated Public Expenditure Data in the Case of Greece: 1958-93," Applied Economics, Taylor and Francis Journals, vol. 29(3), pages 371-77, March. [Downloadable!] (restricted)
  14. Tridimas, George, 2001. " The Economics and Politics of the Structure of Public Expenditure," Public Choice, Springer, vol. 106(3-4), pages 299-316, March. [Downloadable!] (restricted)
  15. Thornton, John, 1999. "Cointegration, Causality and Wagner's Law in 19th Century Europe," Applied Economics Letters, Taylor and Francis Journals, vol. 6(7), pages 413-16, July. [Downloadable!] (restricted)
  16. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sophia Lazaretou, 2008. "Banking and Central Banking in Pre-WWII Grecce: Money and Currency Developments," Working Papers 86, Bank of Greece. [Downloadable!]
  2. Apostolides, Alexander, 2008. "“How Similar to South-Eastern Europe were the Islands of Cyprus and Malta in terms of Agricultural Output and Credit? Evidence during the Interwar Period”," MPRA Paper 9968, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  3. Zarko Lazarevic, 2008. "Banking Performance in South-Eastern Europe During the Interwar Period," Working Papers 79, Bank of Greece. [Downloadable!]
  4. Yuksel Gormez, 2008. "Banking in Turkey: History and Evolution," Working Papers 83, Bank of Greece. [Downloadable!]
  5. Stephan Barisitz, 2008. "Banking Transformation (1989 - 2006) in Central and Eastern Europe - With Special Reference to Balkans," Working Papers 78, Bank of Greece. [Downloadable!]
  6. Roumen Avramov & Dragana Gnjatovic, 2008. "Stabilization Policies in Bulgaria and Yugoslavia During Communism's Terminal Years : 1980s Economic Visions in Retrospect," Working Papers 81, Bank of Greece. [Downloadable!]
  7. Peter Bernholz, 2008. "Government Bankruptcy of Balkan Nations and their Consequences for Money and Inflation before 1914: A Comparative Analysis," Working Papers 74, Bank of Greece. [Downloadable!]
Statistics
Access and download statistics

Did you know? There are over 21000 authors registered on RePEc Author Service.

This page was last updated on 2009-11-25.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.