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The Causal Relationship Between Government Expenditure and Revenue: The Case of Switzerland

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  • Antonio Manzini
  • Milad Zarin-Nejadan
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    Abstract

    This article studies the causality link between government expenditure and revenue at federal, state and local levels in Switzerland. It attempts to gather empirical evidence regarding the question of whether the government pursues a "tax and spend" or "spend and tax" policy. The Granger and Hsiao causality tests are applied to data covering the period 1950-1992. The general evidence turns out to be in favor of a causality running from revenue to expenditure.

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    File URL: http://www.sjes.ch/papers/1995-IV-3.pdf
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    Bibliographic Info

    Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

    Volume (Year): 131 (1995)
    Issue (Month): IV (December)
    Pages: 637-647

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    Handle: RePEc:ses:arsjes:1995-iv-3

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    Postal: c/o SNB/BNS, B├Ârsenstrasse 15, PO Box 2800, CH-8022 Z├╝rich
    Phone: +41 (0)44 631 32 34
    Fax: +41 (0)44 631 39 01
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    Web page: http://www.sjes.ch
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    Cited by:
    1. Magazzino, Cosimo, 2010. "Public expenditure and revenue in Italy, 1862-1993," MPRA Paper 27308, University Library of Munich, Germany.
    2. Goh, Soo Khoon & Dawood, Mithani, 1999. "Causality between government revenue and expenditure in Malaysia: A seasonal cointegration test," MPRA Paper 49383, University Library of Munich, Germany.

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