abstract:Wagner's law, also known as the law of increasing state spending, is a principle named after the German economist Adolph Wagner (1835–1917). He first observed it for his own country and then for other countries.
The empiricalanalysisshows thatthere islongequilibriumrelationshipandGrangercausality between economicgrowth and governmentexpenditure, which support for Wagner'slawinChina.