WAGNER'S LAW, FISCAL INSTITUTIONS, AND THE GROWTH OF GOVERNMENT

Abstract

By examining empirically the growth of government in 34 nations during the post-World War II period, this paper explores whether it is appropriate to make references to such a phenomenon as "Wagner's Law of Expanding State Activity." The variation in patterns of growth in governmental spending is so substantial that one can only conclude that "Wagner's Law" cannot be considered a "law." Possible reformulations of the research agenda pertaining to the size and growth of government are then sketched. In short, it is suggested that attention should be turned to alternative paradigms for interpreting the disparate empirical evidence, especially focusing on the impact of alternative social institutions on patterns of government growth.