... specific economic contractions. Findings The estimation model is informed by Wagner's law specifying a positive link between economic activities and public spending. Model estimation affirms the expected positive relationship and is relevant for generating forecasts. The out-of-sample results show...

...Saeid Mahdavi Purpose This paper seeks to examine the validity of Wagner's Law using annual data (1957‐2006) for the US state‐local government (SLG) real expenditure and eight of its sub‐categories. Design/methodology/approach The co‐integration tests of Johansen and the bounds testing...