Some Second Thoughts on Wagner's Law

摘要: We examine whether the Samuelsonian definition of public goods can be reconciled with "Wagner's Law", that is, expenditures outpacing economic growth. While both predominantly focus on demand-side, they differ respect to their socio-political foundations. Taking latter into account, and acknowledging empirical studies are not generally supportive individual income elasticities systematically differing between private goods, we find Wagner's notion role public-sector issues is even at odds his own dictum. Implicit in Samuelson, by contrast, prediction spending decreases relative GNP when grows, provided distribution remains constant. If this case it shown a growing inequality increases government's share et vice versa which lead counteractive forces ratio.