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The Wagner hypothesis from the perspective of the Romanian economy

Keywords: Wagner law , Granger causality , the size of the governmental sector.

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Abstract:

The study consists in determining a long term relationship between the size of the governmental expenses and the economic growth in Romania during the 2000-2010 period. By using the quarterly data of this period and the econometric techniques like the Granger causality, the co-integration analysis and VAR analysis, we have reached the conclusion that there is enough proof in favour of validating the Wagner law.

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