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Theories of Public Expenditure
Theories of Public Expenditure In the public policy study, we find that there are many theories that explain the causes of increasing government expenditure. Among many, I just have selected four theories and discussed herein. A. Wagner’s Hypothesis Wagner’s hypothesis is propounded by Adolf Wagner . He, in his comprehension comparisons of different countries at different times shows that among progressive people, public expenditure increases regularly takes place in the activity of both the central and local government. This increament by the central and local governments constantly undertake new functions while performing both old and new responsibility more efficient and complete. This law seeks to establish a functional relationship between the rate of economic growth and government activities. It shows that the government sectors grow faster than the economic expenditure. The scope of government activities would continue to increase both absolutely and...
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