Evidence of Wagner's law from Indian states

Seema Narayan, Badri Narayan Rath, Paresh Kumar Narayan

Research output: Contribution to journalArticleResearchpeer-review

25 Citations (Scopus)


In this paper, we test for Wagner's law for 15 Indian states. We consider nine panels of states based on geography and level of economic development. Using panel unit-root, panel-cointegration, and panel-Granger causality analysis, we unravel strong evidence of Wagner's law. However, we find that the Wagner's law relationship is consumption rather than capital expenditure driven. This is a fresh revelation and our results are robust to different model specifications.

Original languageEnglish
Pages (from-to)1548-1557
Number of pages10
JournalEconomic Modelling
Issue number5
Publication statusPublished - Sept 2012
Externally publishedYes


  • Cointegration
  • Heterogeneous
  • Indian states
  • Panel data
  • Unit root
  • Wagner's Law

Cite this