Wagner hypothesis in India

An empirical investigation from pre and post reform period

Bibliographic Data

ID12705172
AuthorsRitu Rani (0000-0001-6897-3544, Department of Commerce Government College for Women Sampla Rohtak India, corresponding author), Naresh Kumar (0000-0001-7549-6299, Institute of Management Studies and Research Maharshi Dayanand University Rohtak India)
Year2020
Volume22
Issue1
Publication date2020-09-02
Open AccessYes
TypeARTICLE
VenueJournal of Public Affairs (JOURNAL)
Journal identifiersISSN: 1472-3891 • E-ISSN: 1479-1854
PublisherWiley (PUBLISHER • GB)
DOI10.1002/pa.2395
OpenAlexW3083319347
LanguageEN
References cited36

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

Causality (physics · Econometrics · Economics · Empirical evidence · Government (linguistics · Government Expenditure · Granger causality · Macroeconomics · Period (music · Public finance · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact

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