Government spending in Ireland not outpacing GDP growth, challenging Wagner's Law.
The article analyzes government spending in Ireland from 1970 to 2012. They used a method called bounds testing to see how government spending relates to the country's economic growth. The study found that even though government spending increased during this time, it did not grow faster than the economy per person. This suggests that Wagner's Law, which says government spending grows faster than the economy, may not apply in Ireland. The results were consistent across different models and even during times of economic crisis. The study also looked at some policy implications.