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An examination of the causal relationship between government spending and revenue: A cointegration analysis

✍ Scribed by George Hondroyiannis; Evangelia Papapetrou

Publisher: Springer US
Year: 1996
Tongue: English
Weight: 654 KB
Volume: 89
Category: Article
ISSN: 0048-5829
DOI: 10.1007/bf00159364

No coin nor oath required. For personal study only.

✦ Synopsis

This paper tests the validity of the proposition that there is a causal relationship between government expenditure and government revenue for Greece over the period 1957-1993. The empirical analysis employs tests of cointegration as pre-tests for Granger tests of causality. The empirical evidence suggests that there is a long-ran relationship between government spending and government revenue and expenditures cause revenues.

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