Testing Wagner's Law at Different Stages of Economic Development - A Historical Analysis of Five Western European Countries
Using historical data, we test the validity of Wagner's law of increasing state activity at different stages of economic development for five industrialized European countries: the United Kingdom, Denmark, Sweden, Finland and Italy. In order to investigate the coherence between Wagner's law and development stage, we classify every country into three individual stages of income development and apply advanced cointegration and vector error correction analyses. In line with Wagner's hypothesis, our findings show that the relationship between public spending and economic growth has weakened with an advanced stage of development. All countries support the notion that Wagner's law in its pure form may have reached its limit in recent decades.
|Date of creation:||08 Aug 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Rolandstrasse 8, 49069 Osnabrueck|
Web page: http://www.iew.uni-osnabrueck.de/
More information through EDIRC
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.:
- Alan T. Peacock & Jack Wiseman, 1961. "The Growth of Public Expenditure in the United Kingdom," NBER Books, National Bureau of Economic Research, Inc, number peac61-1, September.
- Oxley, Les, 1994. "Cointegration, Causality and Wagner's Law: A Test for Britain 1870-1913," Scottish Journal of Political Economy, Scottish Economic Society, vol. 41(3), pages 286-98, August.
- Reinhart, Carmen M. & Rogoff, Kenneth, 2009.
"The Aftermath of Financial Crises,"
CEPR Discussion Papers
7209, C.E.P.R. Discussion Papers.
- Reinhart, Carmen M. & Rogoff, Kenneth S., 2009. "The Aftermath of Financial Crises," Scholarly Articles 11129155, Harvard University Department of Economics.
- Reinhart, Carmen & Rogoff, Kenneth, 2008.
"Las secuelas de las crisis financieras
[The aftermath of financial crisis]," MPRA Paper 13695, University Library of Munich, Germany.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "The Aftermath of Financial Crises," NBER Working Papers 14656, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:iee:wpaper:wp0091. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Arjeta Gringmuth)
If references are entirely missing, you can add them using this form.