Wagner's Law, Public Sector Patterns, and Growth of Public Enterprises in Taiwan

Pluta, Joseph E.

doi:10.1177/109114217900700102

Cited by 15 publications

(9 citation statements)

References 12 publications

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“…Differences in empirical results may also depend on sample size. Pluta (1979) tested (but not by means of causality methodology) Wagner's Law using data from Taiwan. His empirical results contradicted Wagner's Law.…”

Section: Literature Overviewmentioning

confidence: 99%

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The relationship between budgetary expenditure and economic growth in Poland

Gurgul

Mestel

2011

Cent Eur J Oper Res

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This paper investigates the association between different kinds of budgetary expenditure and economic growth of Poland. The empirical analysis makes use of linear and nonlinear Granger causality tests to evaluate the applicability of Wagner's Law and that of the contrasting Keynesian theory. We employ aggregate and disaggregate data with the sub-categories of most important budgetary expenditure, including health care and social security, education and science, national defence and public security expenditure and government administration expenditure for the period Q1 2000 to Q3 2008. This causality analysis indicates that total relation between budgetary expenditure and economic growth is consistent with Keynesian theory. The results of our computations have important policy implications. In case of Poland the health care expenditure was found to be as important for economic growth as expenditures on education and science. Furthermore, in order to stimulate economic growth, Polish government should consider reallocating some of national defence, public security and government administration expenditure to health care, social security, education and science expenditure.

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Section: Literature Overviewmentioning

confidence: 99%

“…With the exception of Pluta (1979) all studies dealt with aggregate data. But there are also studies which investigate how each sub-category of public expenditure relates to GDP growth.…”

Section: Literature Overviewmentioning

confidence: 99%

The relationship between budgetary expenditure and economic growth in Poland

Gurgul

Mestel

2011

Cent Eur J Oper Res

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“…Their outcomes also confirm Wagner's Law in Mexico. Lastly, Pluta (1979) tested Wagner's Law with the applicability in Taiwan. What made his study different from the previous one are the employment of aggregate data as well as the compositions of aggregate data by level of government (including public enterprises), by economic category, and by functional breakdown.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Based on the abovementioned summary of the literatures, the causal relationship between government expenditure and economic growth is still inconclusive. Further, with the exception of Pluta's (1979) research, most of these studies are undertaken with the aggregate data on government expenditure rather than disaggregate data on specific item of government spending. In other words, few studies investigate how each sub-category of general government expenditure relates to economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

The association between government expenditure and economic growth: granger causality test of us data, 1947-2002

Liu¹,

Hsu

Younis

2008

Journal of Public Budgeting, Accounting &Amp; Financial Management

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Wagner’s Law and Keynesian’s theory are two widely accepted yet contrasting propositions. This paper employs Granger causality test on US federal government data, from 1947 to 2002. We used aggregate data as well as disaggregate data with the sub-categories of five federal expenditures, including: national defense, human resources expenditure, physical resources expenditure, net interest payment, and other expenditure. The results of our study suggest that total federal government expenditure is more consistent with Keynesian’s theory while there are diversified causal relationships among five sub-category of federal expenditure. The policy recommendation generated from this paper is that the US federal government should invest more public resources in human resources expenditure assuming that economic growth is the utmost important item on the government agenda.

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“…Burgess and Stern (1993), Tanzi and Zee (2000), Fox and Gurley (2005) find a positive correlation between tax revenue and GDP per capita. This evidence ties in with Wagner's law of increasing state activity (Bird 1971), which states that government activities grow with the economic development of a country over time, through increasing public expenditure to satisfy social needs. Consequently, the fiscal burden and its connection with GDP per capita and its growth might also explain the dynamics of social spending.…”

Section: Economic Determinants Of Social Spendingmentioning

confidence: 99%

Determinants of social spending in Latin America during and after the Washington consensus: a dynamic panel error-correction model analysis

Martín-Mayoral

Sastre

2017

Lat Am Econ Rev

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This paper examines the determinants of social spending in Latin America during the period 1990-2012 and how they differed between the years of the Washington Consensus (1990Consensus ( -2000 and the period that followed (2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012). Special attention is also paid to the evaluation of convergence towards a common upper-bounded steady state (absolute beta convergence) or to specific steady states conditioned by their country's specific determinants (conditional beta convergence). We estimate a panel error-correction version of an autoregressive distributed lag model to identify the long-term relationships between social expenditure and its determinants. Generalised methods of moments estimators are used to control the endogeneity of the regressors. Results indicate that Latin American social spending follows a conditional beta convergence process over the Washington consensus period that was mainly driven by structural differences in fiscal burdens and external debt, while during the second period it was explained by conjunctural differences in the fiscal burden, GDP per capita and the growth of trade and capital openness.

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Wagner's Law, Public Sector Patterns, and Growth of Public Enterprises in Taiwan

Cited by 15 publications

References 12 publications

The relationship between budgetary expenditure and economic growth in Poland

The relationship between budgetary expenditure and economic growth in Poland

The association between government expenditure and economic growth: granger causality test of us data, 1947-2002

Determinants of social spending in Latin America during and after the Washington consensus: a dynamic panel error-correction model analysis

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