Advanced Search
MyIDEAS: Login to save this article or follow this journal

Government Tax Revenue, Expenditure and Causality: the Experience of India


Author Info

  • K. Dhanasekaran

    (Gobi Arts and Science College, Gobichettipalayam, Tamil Nadu)

Registered author(s):


    The objective of the study is to analyse the dynamics of causal relationship between revenue and expenditure. Although a number of studies have shed light on this issue using Granger-Sims causality tests, the present study attempts to quantify various feedback between revenue and expenditure, along the lines suggested by Geweke and then the results are compared with Granger's causality test. The results showed the absence of co-integration between Government tax revenue and expenditure variables implying no evidence of a stable long run relationship between them. Geweke's test provided different inferences for the causal relationship between TR and GE. In the mdel with TR as the dependent variable, Geweke's test indicated the existence of bi-directional causality, while in the case of the model with GE as dependent variable, Geweke's test showed the absence of any causal relationship between the variables. The Granger's test suggests the uni-directional causality flowing from government expenditure to revenue. To conclude, the causal inferences were found to be sensitive to the specification of the model.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.

    Volume (Year): 36 (2001)
    Issue (Month): 2 (July)
    Pages: 359-379

    as in new window
    Handle: RePEc:dse:indecr:v:36:y:2001:i:2:p:359-379

    Contact details of provider:
    Postal: University of Delhi, Delhi 110 007
    Phone: 91-11-2766-6533/34/35, 2766-6703/04/05
    Fax: +91-11-7667159
    Web page:
    More information through EDIRC

    Order Information:

    Related research


    Find related papers by JEL classification:


    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Yaya Keho, 2010. "Spending Cuts or Tax Adjustments: How Can UEMOA Countries Control Their Budget Deficits?," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 9(3), pages 233-252, December.
    2. Francisco G. Carneiro & Joao R. Faria & Boubacar S. Barry, 2005. "Government Revenues And Expenditures In Guinea-Bissau: Causality And Cointegration," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(1), pages 107-117, June.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:dse:indecr:v:36:y:2001:i:2:p:359-379. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pami Dua).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.