This paper presents a test of Wagner's Law for the OECD countries using data from 1960 to 1995. Unlike other analyses of Wagner's Law, explicit allowance is made in the paper for the effect of changes in the age distribution of the population on public spending. The results show that the influence of these demographic factors on government expenditure has been substantial and that Wagner's Law holds for transfer payments but not for government consumption.
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Length: 25 pages Date of creation: 1999 Date of revision: Handle: RePEc:mlb:wpaper:694
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Find related papers by JEL classification: E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy