TEMPORAL CAUSALITY BETWEEN GOVERNMENT’S REVENUE AND EXPENDITURE

Authors

  • Sérgio Ricardo de Brito Gadelha Secretaria do Tesouro Nacional

    DOI:

    https://doi.org/10.22456/2176-5456.12038

    Keywords:

    Tax-and-spend, Spend-and-tax, Fiscal synchronization, Engle-Granger causality test

    Abstract

    In this paper, we investigate the long run equilibrium relationship and Granger causality, in bivariate and multivariate frameworks, among the variables government revenue, government expenditure, gross domestic product and public debt, in order to test the hypothesis of tax-and-spend, spend-and-tax, or fiscal synchronization for Brazil. Using monthly data for the period January 1997 to June 2009, the results of Engle-Granger (1987) causality test suggest bidirectional causality between government revenue and government expenditure, according to fiscal synchronization hypothesis.

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    Published

    2011-12-22

    How to Cite

    Gadelha, S. R. de B. (2011). TEMPORAL CAUSALITY BETWEEN GOVERNMENT’S REVENUE AND EXPENDITURE. Análise Econômica, 29(56). https://doi.org/10.22456/2176-5456.12038

    Issue

    Vol. 29 No. 56 (2011): setembro de 2011

    Section

    Artigos

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