Revenue and Expenditure Nexus: A Case Study of Romania
AbstractThis study determines the causal relationship between the expenditure and revenue of government in the case of Romania by using the autoregressive distributive lag approach to cointegration, variance decomposition and rolling regression method. The results indicate that bidirectional long run relationship exist between expenditure and revenue of government. The variance decomposition method suggests government revenue shock has more sharply impact on the government expenditure as compared to the shock in government expenditure and response of government revenue collection.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32132.
Date of creation: 10 Dec 2010
Date of revision:
Government revenue; government expenditure; cointegration;
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
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