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The aim of this paper is to empirically assess the relationship between government size and economic growth. Using time series methodologies applied to annual data for Italy, the effect of public expenditure, unemployment, and fiscal reforms on economic activity have been analysed. The data used...
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Purpose One of the main theories regarding the relationship between government expenditure and gross domestic product (GDP) is Wagner's law. This law was developed in the late-19th century by Adolph Wagner (1835-1917), a prominent German economist, and depicts that an increase in government...
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