Government Expenditures in the European Union: Do They Converge or Follow Wagner's Law?

Afxentiou, Panos; Serletis, Apostolos

doi:10.1080/10168739600000003

Cited by 23 publications

(15 citation statements)

References 9 publications

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“…The validity of Wagner's Law has been assessed and evaluated by using various econometric methods for different countries in an empiric way. Some of the results extracted from such studies offer supportive evidence (Oxley 1994;Ahsan et al 1996;Kolluri et al 2000;Sideris 2007;Kumar et al 2012), while some present contrary evidence (Courakis et al 1993;Koop and Poirier 1995;Afxentiou and Serletis 1996;Ansari et al 1997;Chow et al 2002;Burney 2002).…”

Section: Introductionmentioning

confidence: 88%

Examining the Validity of Wagner’s Law in the OECD Economies

Bayrak

Esen²

2014

RAE

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In this study, the validity of Wagner's Law, which explains the relationship between public expenditures and economic growth, has been analyzed over its alternative models by using the data from 27 OECD economies between the years 1995-2012. It has been carried out by utilizing unit root, co-integration and error correction tests panel data analyses, the long term co-efficiencies between public expenditures and economic growth. In order to test the relationship of co-integration, the Pedroni, Johansen-Fisher and Westerlund co-integration tests were utilized, whereas for the predictions of the long term co-efficiencies, the DOLS predictor was utilized. In addition, the PMGE and MGE error correction models were benefited from for predicting the short term parameters between the variables.

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Section: Introductionmentioning

confidence: 88%

Examining the Validity of Wagner’s Law in the OECD Economies

Bayrak

Esen²

2014

RAE

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“…A first empirical attempt for the European countries originated from Afxentiou and Serletis (1996), at a time where the euro project was at a preliminary stage of design and the potential event of a fiscal sovereign crisis was unthinkable. Given the new euro environment, however, as well as the recent fiscal sovereign crisis, we strongly believe that the examination of the current picture regarding public expenditures convergence is more than a necessity.…”

Section: Introductionmentioning

confidence: 99%

Convergence in public expenditures across EU countries: evidence from club convergence

Apergis

Christou

Hassapis

2013

Economics & Finance Research

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The goal of the present article is to investigate the degree of convergence in public expenditures for a panel of 17 European Union member countries spanning the period 1990 to 2012. We apply the methodology of Phillips and Sul (2007) to various categories of public expenditures to assess the existence of convergence clubs. Overall, the results do not support the hypothesis that all countries converge to a single equilibrium state in various public expenditures. Terms of use: Documents in EconStor may

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“…For example, in studies conducted by Chow et al (2002), Thornton (1999) and Ansari et al (1997) Wagner's law was confirmed experimentally. While in the study conducted by Ram (1986), Afxentiou and Serletis (1996) and Wahab (2004), Wagner's law could not be confirmed experimentally.…”

Section: Theoretical Principles and Literature Reviewmentioning

confidence: 74%