|
|
|
|
Title: |
Government Expenditures in the European Union:
Do They Converge or Follow Wagner's Law? |
| Author: |
Afxentiou,
Panos C.; Serletis, Apostolos |
| Author
Affiliation: |
U Calgary |
| Source: |
International Economic Journal, Autumn 1996, v. 10, no. 3, pp. 33-47 |
|
Publication Date: |
Autumn 1996 |
|
Abstract: |
This paper examines government expenditure
convergence within the expanded European Union. Except for a few cases
convergence was generally not validated for government consumption,
transfers, subsidies nor for their aggregate, all expressed in constant
real per capita terms. Neither was any long run equilibrium relationship
found between these categories of expenditures and GDP. Causality tests
from GDP to these expenditure categories, in the spirit of Wagner's law,
proved as unsatisfactory as tests of reverse causality. All results
indicate that there is room for government expenditure harmonization
within the EU provided members are really determined to work toward such
objective. |
|
