Original article Macroeconomics and Monetary Economics

Economic growth and government expenditure – evidence of Wagner’s Law in some EU countries

Stoyan Tanchev - South-West University "Neofit Rilski"
Received: 30 May 2022
Revised:
Published:
Downloads: 0
Citations: 0
Issue 1/2021
JEL E62 H41 H50
DOI https://doi.org/10.56497/etj2166103

Abstract

The article provides an empirical assessment of Wagner's Law for Bulgaria, Spain, Portugal, Greece, Hungary, Belgium, Austria, Germany, France, the Netherlands, Denmark, Luxembourg, Finland, Iceland and Norway. The relationship between the growth rates of GDP per capita and government expenditures for the period from the first quarter of 1999 to the second quarter of 2017 was modeled using the autoregressive ARDL method and the Bounds test. According to the results obtained, Wagner's law was confirmed for Bulgaria and Spain, while it did not find support for the other countries. This is further confirmed by the attached Granger causality test.

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