Government Size and Economic Growth: Time-Series Evidence for the United Kingdom, 1830-1993
AbstractThis study considers the long-run relationship between government expenditure and economic growth for the United Kingdom over the period 1830 to 1993. The causality analysis allows for the effects of exports, and for the presence of complex structural breaks in the data. The results support the export-led growth hypothesis. Although support for Wagner’s Law is sensitive to the choice of sample period, there is evidence that GDP growth Granger-causes the share of government spending in GDP indirectly through exports’ share of GDP during the period 1870-1930.
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Bibliographic InfoPaper provided by Department of Economics, University of Victoria in its series Econometrics Working Papers with number 0501.
Length: 22 pages
Date of creation: 17 Jan 2005
Date of revision:
Note: ISSN 1485-6441
Contact details of provider:
Postal: PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2
Web page: http://web.uvic.ca/econ
More information through EDIRC
Wagner's law; Granger causality; size of government; structural breaks;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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