New study reveals how government spending impacts national income in Canada
The article compares two economic theories by looking at how government spending in Canada relates to national income from 1950 to 1995. The researchers found that both Wagner's and Keynes's ideas were supported when looking at overall government spending. However, when they looked at specific types of government spending, they didn't find a long-term connection with national income. But in the short term, there was evidence that national income and certain types of government spending influenced each other.