Wagner’s Hypothesis: An Empirical Verification

Adil, Masudul Hasan; Ganaie, Aadil Ahmad; Kamaiah, Bandi

doi:10.1177/2277975216667095

Cited by 18 publications

(17 citation statements)

References 21 publications

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“…However, unlike other cointegration approaches such as Johansen and Juselius (2001), autoregressive distributed lag (ARDL) model does not require all variables to be integrated of order unity, but it is important for ARDL approach to confirm that none of the variables should be integrated of order more than unity (Pesaran et al, 2001). In the presence of any variable which is integrated of order two or more, the analysis produces spurious F-statistics (Adil and Kamaiah, 2017). Therefore, for the purpose of identifying the variables' integration order, the present study applies different unit root tests, viz.…”

Section: Econometric Methodologymentioning

confidence: 99%

“…Phillips, Peter Schmidt, & Yongcheol Shin (1992)and Dickey Fuller–generalized least square (DF‐GLS) test developed by Society, Elliott, Rothenberg, & Stock (1996). Whereas PP test statistics is considered to be robust for a variety of serial correlation and time‐dependent heteroscedasticity (Adil and Kamaiah, ), DF‐GLS tests applied to the de‐trended data set without intercept produce better results in case of small sample size.…”

Section: Data Source and Econometric Methodologymentioning

confidence: 99%

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Validating the environmental Kuznets curve in India:ARDLbounds testing framework

Alam

Adil

2019

OPEC Energy Review

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This study empirically examines the cointegrating relationship among variables, viz. carbon emission, economic growth, square of economic growth, primary energy supply, financial development and trade openness in India, with a view to validate the Environmental Kuznets Curve (EKC) hypothesis. The results based on ARDL bounds testing approach to cointegration find no credence to EKC hypothesis, for the period 1971–2016. This indicates that the relationships between carbon emission and economic growth are not significant, and therefore, the EKC hypothesis does not hold in the case of India. Furthermore, the study establishes a significant positive relationship between energy supply and carbon emission. A proportionate increase in energy supply causes more than proportionate increase in carbon emission. In order to cope up with the positive impact of energy on carbon emission, the study suggests that the country needs to expedite the process of enhancing the capacity of renewable and clean energy generation.

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Section: Econometric Methodologymentioning

confidence: 99%

Section: Data Source and Econometric Methodologymentioning

confidence: 99%

Validating the environmental Kuznets curve in India:ARDLbounds testing framework

Alam

Adil

2019

OPEC Energy Review

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“…Our results got support from previous studies like Hackl et al [15], Goffman and Mahar [21], Henning and Tussing, [22] Ganti and Kolluri [23], Beck [24], Vatter and Walker [25], Khan [26], Ram [27], Henrekson, [28] Verma and Arora [56] who found strong support for Wager's law in long run. Furthermore, the study does not find any unidirectional causality running from GE to GDP unlike Pradhan [60], Adil et al [61] and Budhedeo [43].…”

Section: Conclusion and Policy Suggestionsmentioning

confidence: 62%

“…In past, a number of studies have examined the validity of Wagner's law but having conflicting results that differ country to country and not consistent either with cross-section, time series or panel data. In case of India too, we have literature that has conflicting findings among them Singh and Sahani [48], Upendra [61] and Budhedeo [43] opined that though there exists co-integration between GE and GDP but only unidirectional causality is running from GE to national income or GDP, hereby finding GE as an important tool to influence national income.…”

Section: Studies Like Gupta [19] and Birdmentioning

confidence: 99%

“…used panel data of 15 Indian states and found support for Wagner's law from consumption side rather than from capital expenditure. Kirandeep and Umme[58] also used time-series data from 1970-2013 in context of India and have mixed results which validated Peacock, Gupta, Guffman and Musgrave versions of Wagner's law for Indian economy.However, studies like Chandra[59], Pradhan,[60] Adil et al[61], Budhedeo[43] used timeseries data and found no long run or weak relationship between GE and GDP. Chandra,[59] used time series from 1950 to 1996 and opined no long relationship exists between size of government and GDP.…”

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confidence: 99%

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The Validity of Wagner’s Law in India: A Post-liberalisation Analysis

Sharma

Singh

2019

SAJSSE

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Aims:The present study attempts to analyse the behavior of government expenditure in relation to national income using most appropriate advanced econometric techniques to test the Wagner's law of increasing State's activity in Indian scenario during the post-liberalisation period of 1988 to 2017.2 Results: The results of Vector Error Correction Model reveal that both the Gross Domestic Product and the urban population have a positive and statistically significant effect on government expenditure in the long-run. Ceteris paribus, every 1.0 percent increase in GDP leads 0.36 percent increase in government expenditure. On the other hand, 1.0 percent increase in urban population leads to a 3.75 percent increase in government expenditure. The Granger causality results divulge that there is unidirectional causality running from urban population to government expenditure, whereas neither unidirectional nor bidirectional causality was found between GDP and public expenditure. In short-run, neither GDP nor urban population influences public expenditure. Conclusion: To sum up, the present investigation provides support for Wagner's law in case of India in the long run only. It has been found that urbanisation has a greater impact on public expenditure than the national income (GDP) and which is also supported by Granger causality test showing significant unidirectional causality running from level of urbanisation to government expenditure.

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Wagner hypothesis in India: An empirical investigation from pre and post reform period

Rani¹,

Kumar

2020

Journal of Public Affairs

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The present study empirically examines the validity of Wagner's hypothesis for Indian economy in pre (1967–1990) and post (1991–2015) reform period. The study examined six alternatives versions of Wagner's hypothesis. The long‐run relationship between government expenditure and economic growth is tested using ARDL model while causal relationship has been investigated using Granger causality test. The results found strong evidence of Wagner's hypothesis during post reform period while the elasticity of government expenditure to economic growth is low in pre reform period. Further, results indicate that unidirectional causality is moving from economic growth to government expenditure in all versions of Wagner's hypothesis.

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Wagner’s Hypothesis: An Empirical Verification

Cited by 18 publications

References 21 publications

Validating the environmental Kuznets curve in India:ARDLbounds testing framework

Validating the environmental Kuznets curve in India:ARDLbounds testing framework

The Validity of Wagner’s Law in India: A Post-liberalisation Analysis

Wagner hypothesis in India: An empirical investigation from pre and post reform period

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