Document Type : Original Article
Author
Ph.D. in Economics, Department of Economics, Faculty of Management and Economics, Lorestan University, Khorramabad, Iran.
Abstract
The government's public expenditure has grown rapidly over the years, which is believed to have a significant impact on the country's financial performance. Due to the existence of consequences due to the expansion of government spending on the economy, it is necessary to understand the factors that cause the growth of government spending. For this purpose, this study uses a modified version of Wagner's law by combining new variables such as oil income, trade openness, public debt, exchange rate, domestic production, taxes and inflation to determine their effect on the size of government spending in Iran using To examine the time series data between 1978 and 2019 with the autoregression method with distributed lag (ARDL). The findings of this study show that oil revenue, GDP, population, trade openness, taxes, inflation, and public debt are important determinants of government spending. The short-term and long-term results confirm Wagner's law in Iran and show that the effort to develop and diversify has forced the government to expand public spending by building public infrastructure (railways, electricity, etc.).
Keywords
Main Subjects
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