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Revenue-Expenditure Nexus For Southern States : Some Policy Oriented Econometric Observations

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  • Kausik Chaudhuri

    (MSE)

  • Bodhisattva Sengupta

Abstract

The paper examines the temporal relationship between revenues and expenditures for the four southern states during 1980 to 2005. Using an error-correction model and Granger causality test, it finds that the taxspend hypothesis is supported by the analsysis. The spend-tax hypothesis is valid for Karnataka; fiscal synchronization hypothesis is supported for Andhra Pradesh and Kerala, while the data for Tamil Nadu failed to show any causality.

Suggested Citation

  • Kausik Chaudhuri & Bodhisattva Sengupta, 2009. "Revenue-Expenditure Nexus For Southern States : Some Policy Oriented Econometric Observations," Governance Working Papers 22937, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:govern:22937
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    Cited by:

    1. Yousef Elyasi & Mohammad Rahimi, 2012. "The Causality between Government Revenue and Government Expenditure in Iran," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 5(1), pages 129-145, April.

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    More about this item

    Keywords

    Revenue Expenditure; Indian States; Cointegration;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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