On the Causal Relationship between Government Expenditure and Tax Revenue in Pakistan
AbstractThis paper applies the technique of Granger Causality to determine the relationship between total government expenditures and total tax revenue using annual revised estimates. The analysis discovers a firm unidirectional effect from expenditure to revenue suggesting the preference of controlling the spending decisions to reduce the tax revenue-expenditure deficit.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0509014.
Length: 12 pages
Date of creation: 07 Sep 2005
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Note: Type of Document - pdf; pages: 12
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Expenditure; Tax Revenue; Causality;
Find related papers by JEL classification:
- E - Macroeconomics and Monetary Economics
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- Michael Marlow & Neela Manage, 1987. "Expenditures and receipts: Testing for causality in state and local government finances," Public Choice, Springer, vol. 53(3), pages 243-255, January.
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