The tax-spend debate: the case of Canada
AbstractThe time series relationship between revenues, expenditures, and GDP in the case of Canada is examined. Utilizing the Johansen-Juselius multivariate cointegration procedure and error correction modelling we find that revenues follow a time path independent of expenditures and GDP. On the other hand, expenditures respond to budgetary disequilibrium in that budget imbalances would be corrected by expenditure changes. Moreover, evidence suggests that expenditures also respond to GDP.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 4 (1997)
Issue (Month): 6 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEL20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Garcia, Sophie & Henin, Pierre-Yves, 1999.
"Balancing budget through tax increases or expenditure cuts: is it neutral?,"
Elsevier, vol. 16(4), pages 591-612, December.
- Hénin, Pierre-Yves & Garcia, Sophie, 1996. "Balancing budget through tax increases or expenditures cuts : is it neutral ?," CEPREMAP Working Papers (Couverture Orange) 9604, CEPREMAP.
- Yuan-Hong Ho & Chiung-Ju Huang, 2009. "Tax-Spend, Spend-Tax, or Fiscal Synchronization: A Panel Analysis of the Chinese Provincial Real Data," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 5(2), pages 257-272, July.
- 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.
- Yashobanta, Yashobanta Parida & smruti, Smruti Ranjan Behera, 2012. "Causal Link between Central Government Revenue and Expenditure: Evidence for India," MPRA Paper 43072, University Library of Munich, Germany.
- Ghartey, Edward E., 2008. "The budgetary process and economic growth: Empirical evidence of the Jamaican economy," Economic Modelling, Elsevier, vol. 25(6), pages 1128-1136, November.
- Magazzino, Cosimo, 2010. "Public expenditure and revenue in Italy, 1862-1993," MPRA Paper 27308, University Library of Munich, Germany.
- Qing Wang & Ugo Fasano-Filho, 2002. "Testing the Relationship between Government Spending and Revenue: Evidence from GCC Countries," IMF Working Papers 02/201, International Monetary Fund.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.