An Empirical Verification of Wagner Hypothesis in Haryana (India) : An ARDL Bounds Testing Approach

AbstractPurposeThis study is empirical verification of Wagner Law in the state of Haryana for a long period of time i.e 1980-2024.Design/Methodology/approachA long causal relationship between state income and expenditure has been examined with the help of ARDL Model and Granger Causality.FindingsAn ARDL model exhibited weak evidence of Wagner Hypothesis during studied period. There has unidirectional causality exists from economic growth to government expenditure which is confirmed by the Granger Causality test.Originality/valueThis study is helpful for the state i.e. how to achieve the long run productive gaols of public expenditure without curtail the development expenditure.