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Analyzing Causality Between Romania’S Public Budget Expenditures And Revenues

Author

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  • Andreea Stoian

    (Academy of Economic Studies, Bucharest)

Abstract

Establishing the relationship between public revenues and expenditures represents a debated issue among economists. The correlation between the two variables is significant for identifying and explaining public budget inbalance and for assessing sustainability of fiscal and budgetary policies. The aim of this study is to analyze the causality between budgetary revenues and expenditures on Romania’s case. Applying Granger causality tests reveals the fact that the dynamic of budgetary expenditures is caused by budgetary revenues, which, also, implies the existence of error correction mechanisms for fiscal imbalances.

Suggested Citation

  • Andreea Stoian, 2008. "Analyzing Causality Between Romania’S Public Budget Expenditures And Revenues," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 11(11(528)(s), pages 60-64, November.
    • Handle: RePEc:agr:journl:v:11(528)(supplement):y:2008:i:11(528)(supplement):p:60-64
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    Cited by:

    1. Kayandabila, Yamungu & Manyama, Mulesi Kanyere, 2013. "Fiscal Policy and Debt Dynamic: Evidence from Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 1(2), July.
    2. Cyrus MUTUKU, 2015. "Assessing Fiscal Policy Cyclicality and Sustainability: A Fiscal Reaction Function for Kenya," Journal of Economics Library, KSP Journals, vol. 2(3), pages 173-191, September.
    3. HYE, Qazi Muhammad Adnan & M Anwar, Jalil, 2010. "Revenue and Expenditure Nexus: A Case Study of Romania," MPRA Paper 32132, University Library of Munich, Germany.

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