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Tax then spend or spend then tax? Experience in the UK, 1961-93

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  • Mohammad Hasan
  • Ian Lincoln
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    Abstract

    Using a hybrid of cointegration theory and Granger-Akaike's synthesis of modelling strategy, we have reexamined the causal relationship between tax revenue and government spending in the UK in a cointegrated VAR model. The results are indicative of a bi-directional causality between revenue and spending.

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    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/758518502&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

    Volume (Year): 4 (1997)
    Issue (Month): 4 ()
    Pages: 237-239

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    Handle: RePEc:taf:apeclt:v:4:y:1997:i:4:p:237-239

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    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. Benjamin S. Cheng & Ashagre Yigletu, 2000. "Causality Between Taxes and Expenditures in the U.S.: A Multivariate Approach," New York Economic Review, New York State Economics Association (NYSEA), vol. 31(1), pages 15-26.

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