Wagner’s Law and Fiscal Illusion: An analysis of state government finances in Brazil

2020 ◽  
Vol 24 (2) ◽  
pp. 628-643
Author(s):  
Pedro Henrique Martins Prado ◽  
Cleomar Gomes Silva
Keyword(s):  
State Government ◽  
Fiscal Illusion ◽  
Wagner’S Law ◽  
Wagner's Law

Explaining Government Growth in the U.S. States

1988 ◽  
Vol 82 (3) ◽  
pp. 837-849 ◽  
Author(s):  
James C. Garand
Keyword(s):  
Empirical Support ◽  
Fiscal Illusion ◽  
Wagner’S Law ◽  
Weak Support ◽  
Government Growth ◽  
Economic Output ◽  
Party Control ◽  
Competing Models ◽  
Wagner's Law ◽  
Intergovernmental Grant

Despite the explosive increase in the research program on government growth in recent years, little work has been done on government growth disaggregated to the subnational level. I examine the empirical validity of five competing models of government growth for the fifty U.S. states from 1945 to 1984: Wagner's Law, fiscal illusion, party control, bureau voting, and intergovernmental grant. Government size is defined in terms of state government spending as a proportion of total state economic output, with separate implicit price deflators being employed for the public and private sectors. Based on a longitudinal test of these competing models, the analysis uncovers strong empirical support for the bureau voting and intergovernmental grant models, moderately weak support for the Wagner's Law model, and virtually no support for the fiscal illusion and party control explanations. These findings have important implications for the study of government growth in general and, more specifically, in the states.

WAGNER'S LAW: AN ECONOMETRIC TEST FOR MEXICO, 1925-1976

1980 ◽  
Vol 33 (2) ◽  
pp. 189-201
Author(s):  
ARTHUR J. MANN
Keyword(s):  
Wagner’S Law ◽  
Wagner's Law

Wagner's law and public expenditure growth in Kuwait

OPEC Review ◽  
1999 ◽  
Vol 23 (2) ◽  
pp. 139-171 ◽  
Author(s):  
Nadeem A. Burney ◽  
Nadia Al-Mussallam
Keyword(s):  
Public Expenditure ◽  
Wagner’S Law ◽  
Expenditure Growth ◽  
Wagner's Law

scholarly journals A validation of Wagner's Law: a case study of Sri Lanka

2017 ◽  
Vol 14 (1) ◽  
pp. 29
Author(s):  
Ali Salman Saleh ◽  
Reetu Verma ◽  
Ranjith Ihalanayake
Keyword(s):  
Sri Lanka ◽  
Wagner’S Law ◽  
Wagner's Law

Testing Wagner’s Law

2002 ◽  
pp. 33-48
Author(s):  
Panos Afxentiou ◽  
Apostolos Serletis
Keyword(s):  
Wagner’S Law ◽  
Wagner's Law

scholarly journals Re-testing Wagner's Law: Structural breaks and disaggregated data for South Africa

2017 ◽  
Vol 9 (4(J)) ◽  
pp. 49-61
Author(s):  
Mthokozisi Mlilo ◽  
Matamela Netshikulwe
Keyword(s):  
South Africa ◽  
Structural Breaks ◽  
Government Expenditure ◽  
Active Role ◽  
Output Growth ◽  
Causality Test ◽  
Wagner’S Law ◽  
Education Expenditures ◽  
Wagner's Law ◽  
The Government

Direction of causality between government expenditure and output growth is pertinent for a developing country since a sizeable volume of economic resources is in the hands of the public sector. This paper investigates the Wagner's law in South Africa over the post-apartheid era, 1994-2015. This paper is unique to present studies since it uses disaggregated government expenditure and controls for structural breaks. The Granger non-causality test of Toda & Yamamoto, a superior technique compared to conventional Granger causality testing, is employed and this paper finds no support for Wagner's law. However, there is causality running from total government and education expenditures to output. This finding is in line with the Keynesian framework. It is recommended in the paper that the government should take an active role in promoting output growth through increases in education expenditures in particular.

scholarly journals The Wagner’s law testing in the Visegrád Four countries

2020 ◽  
Vol 20 (4) ◽  
pp. 409-430
Author(s):  
Žaneta Tesařová
Keyword(s):  
Var Model ◽  
Capital Expenditures ◽  
Public Expenditures ◽  
Short Term ◽  
The Czech Republic ◽  
Wagner’S Law ◽  
Vec Model ◽  
Wagner's Law ◽  
Johansen Cointegration Test ◽  
The Relationship

AbstractThis research paper analyses the relationship between gross domestic product and public expenditures in nominal terms. The analysis is being done by using the standard Peacock-Wiseman specification of the Wagner’s law and provides the results for the Visegrád Four countries, i.e. the Czech Republic, Slovakia, Poland and Hungary. We aim to answer a question concerning the existence of a long and/or short-term relationship between the nominal GDP and nominal public expenditures, which consist of current and capital expenditures. To address this question, we employ the VAR model, the Johansen Cointegration test and the VEC model. We study a period between the first quarter of 1999 and the second quarter of 2019 and find out mixed results for the Visegrád Four countries.

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