Increasing public expenditures: Wagner's Law in OECD countries
- The paper proposes a panel cointegration analysis of the joint development of government expenditures and economic growth in 23 OECD countries. The empirical evidence provides indication of a structural positive correlation between public spending and per-capita GDP which is consistent with the so-called Wagner´s law. A long-run elasticity larger than one suggests a more than proportional increase of government expenditures with respect to economic activity. In addition, according to the spirit of the law, we found that the correlation is usually higher in countries with lower per-capita GDP, suggesting that the catching-up period is characterized by a stronger development of government activities with respect to economies in a more advanced state of development.
| Author: | Serena Lamartina, Andrea ZaghiniORCiDGND |
|---|---|
| URN: | urn:nbn:de:hebis:30-56861 |
| Parent Title (German): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2008,13 |
| Series (Serial Number): | CFS working paper series (2008, 13) |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2008 |
| Year of first Publication: | 2008 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2008/08/07 |
| Tag: | Fiscal Policy; Panel Cointegration; Wagner's Law |
| GND Keyword: | Öffentliche Ausgaben; Wirtschaftswachstum; Kointegration |
| HeBIS-PPN: | 202903036 |
| Institutes: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| JEL-Classification: | C Mathematical and Quantitative Methods / C2 Single Equation Models; Single Variables / C23 Models with Panel Data |
| Licence (German): |  Deutsches Urheberrecht |
