JIMS 8M The Journal of Indian Management and Strategy
Web of Science
  • Year: 2025
  • Volume: 30
  • Issue: spl

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

1Lecturer in Economics, DIET Ikkas, Jind

2Assistant Professor, Haryana School of Business, GJUST, Hisar

Online Published on 10 April, 2026.

Abstract

This study is empirical verification of Wagner Law in the state of Haryana for a long period of time i.e 1980-2024.

A long causal relationship between state income and expenditure has been examined with the help of ARDL Model and Granger Causality.

An 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.

This study is helpful for the state i.e. how to achieve the long run productive gaols of public expenditure without curtail the development expenditure.

Keywords

Economic growth, Government spending, Unit root, ARDL, Cusum test, C4, C5, C32, E62, H50, H76