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A synthesis of empirical research on the validity of Wagner's law

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  • Dimitrios Paparas
  • Christian Richter

Abstract

In this paper we provide a synthesis of empirical research in the validity of Wagner's law of the existing literature for the period 1969-2014. Wagner's law attracted the interest of many authors and is still being discussed by policy makers and economists in relation to government spending expansion since it was applied by Adolph Wagner in the 1880s. Additionally, we will present the previous empirical work in this topic. Since the translation of Wagner's 'law' in 1950s, a large number of authors tested various specifications of the law. All these studies found different empirical results: support, no support or mixed results. Conflicting findings in this field are not surprising because of the diverse theoretical predictions and also because countries may be at different stages of economic development; thus, the debate about the relationship between government spending and economic growth remains an unresolved issue.

Suggested Citation

  • Dimitrios Paparas & Christian Richter, 2019. "A synthesis of empirical research on the validity of Wagner's law," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 22(4), pages 555-583.
    • Handle: RePEc:ids:ijbglo:v:22:y:2019:i:4:p:555-583
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    Cited by:

    1. Dimitrios Paparas & Christian Richter & Ioannis Kostakis, 2019. "The validity of Wagner’s Law in the United Kingdom during the Last Two Centuries," International Economics and Economic Policy, Springer, vol. 16(2), pages 269-291, April.
    2. Paparas, Dimitrios & Stoian, Andreea, 2016. "The validity of Wagner’s Law in Romania during 1995-2015," MPRA Paper 74378, University Library of Munich, Germany.
    3. Brooks, D. & Needham, D., 2023. "The Historical Importance of Growth and Inflation in Reducing High UK Public Debt Ratios," Cambridge Working Papers in Economics 2341, Faculty of Economics, University of Cambridge.

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