Fiscal Policy in Sweden: Effects of EMU Criteria Convergence
AbstractThis paper investigates the sustainability of fiscal policy in Sweden performed during the period 1963:01-1997:04. On the basis of Johansen's VAR and the augmented Granger causality tests, the results show that taxes and spending are causally related in the long-run and the homogeneity condition is supported empirically. The effect of EMU criteria convergence on fiscal policy is also investigated empirically. “Pantula principle” is applied for determining the form of deterministic trend component. Special attention is given to the lag-choosing process.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 1999:5.
Length: 27 pages
Date of creation: 21 Sep 1999
Date of revision: Nov 1999
Publication status: Published in Economic Modelling, 2002, pages 121-136.
Contact details of provider:
Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
More information through EDIRC
Spending; revenue; Granger causality; cointegration; Johansen's VAR; EMU;
Other versions of this item:
- Hatemi-J, Abdulnasser, 2002. "Fiscal policy in Sweden: effects of EMU criteria convergence," Economic Modelling, Elsevier, vol. 19(1), pages 121-136, January.
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
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