Wagner’s law vs. Keynes’ hypothesis in very different countries (Armenia and Spain)

摘要: Abstract There is considerable controversy in the economic literature concerning whether particular government expenditures have an impact on growth. This study analyzes macroeconomic magnitude of Armenia and Spain evaluates there exists a causal relationship between growth, vice versa (Keynes’ hypothesis Wagner’s law). The employs VAR methodology to analyze annual data for years 1996–2014. By utilizing Granger causality tests, reveals are significant factor growth short-term perspective. Finally, IRF FEVD tests applied estimate effects change GDP twelve year time horizon. validates that, irrespective size nature economy (Armenia vs. Spain), some public (e.g. healthcare) positively contribute economy, while social protection both countries negatively related GDP.