The relationship between public expenditure and aggregate income has long been debated in economic literature. According to Wagner, expenditure is an endogenous factor or an outcome. On the other hand, Keynes considered public expenditure as an exogenous factor to be used as a policy instrument to influence growth. “Augmented” version of Wag-ner’s Law, where public deficit appears as further explanatory variable, is also investigated. The aim of this paper is to assess empirical evidence of these hypotheses in EU-27, for the period 1970-2009. After a brief introduction, a survey of the economic literature on this is-sue is offered, before evaluating some specifications of “Wagner’s Law” due to several researchers. Few notes on the empirical evidence’ comparisons conclude the paper.

Magazzino, C. (2012). Wagner's Law and Augmented Wagner's Law in EU-27. INTERNATIONAL RESEARCH JOURNAL OF FINANCE AND ECONOMICS, 89(April), 205-220.

Wagner's Law and Augmented Wagner's Law in EU-27

MAGAZZINO, COSIMO
2012-01-01

Abstract

The relationship between public expenditure and aggregate income has long been debated in economic literature. According to Wagner, expenditure is an endogenous factor or an outcome. On the other hand, Keynes considered public expenditure as an exogenous factor to be used as a policy instrument to influence growth. “Augmented” version of Wag-ner’s Law, where public deficit appears as further explanatory variable, is also investigated. The aim of this paper is to assess empirical evidence of these hypotheses in EU-27, for the period 1970-2009. After a brief introduction, a survey of the economic literature on this is-sue is offered, before evaluating some specifications of “Wagner’s Law” due to several researchers. Few notes on the empirical evidence’ comparisons conclude the paper.
2012
Magazzino, C. (2012). Wagner's Law and Augmented Wagner's Law in EU-27. INTERNATIONAL RESEARCH JOURNAL OF FINANCE AND ECONOMICS, 89(April), 205-220.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11590/144718
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