Research Department, Central Bank of Nigeria
Wagner's Law, Cointegration, Error Correction, Causality, Nigeria
This paper examines the validity of Wagner's Law (the tendency for public expenditure to grow relative to national income) against the contending Keynesian proposition (that it is the changes in public expenditure that trigger those of national income) using Nigeria's data over the period 1970-3003. Two variants of the models for investigating Wagner's Law were tested.
Aregbeyen, O. (2006). Cointegration, causality and Wagner's Law: a test for Nigeria, 1970-2003. Economic and Financial Review, 44(2), 1-22.