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Tax or Spend, What causes What? Reconsidering Taiwan's Experience

Author

Listed:
  • Scott M. Fuess, Jr.

    (Department of Economics, University of Nebraska-Lincoln, U.S.A and IZA.)

  • Jack W. Hou

    (Department of Economics, California State University-Long Beach, U.S.A.)

  • Meghan Millea

    (Department of Finance and Economics, Mississippi State University, U.S.A.)

Abstract

Earlier research suggests that there has been one-way causality from government revenues to expenditures in Taiwan. This study measures linear feedback to (1) decompose the relationship between Taiwan's government spending and receipts and (2) account for contemporaneous association. Despite substantial fiscal synchronization, we still find one-way causality from government receipts to expenditures.

Suggested Citation

  • Scott M. Fuess, Jr. & Jack W. Hou & Meghan Millea, 2003. "Tax or Spend, What causes What? Reconsidering Taiwan's Experience," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 2(2), pages 109-119, August.
    • Handle: RePEc:ijb:journl:v:2:y:2003:i:2:p:109-119
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    References listed on IDEAS

    as
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    10. Kawaller, Ira G & Koch, Paul D & Koch, Timothy W, 1993. "Intraday Market Behavior and the Extent of Feedback between S&P 500 Futures Prices and the S&P 500 Index," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 16(2), pages 107-121, Summer.
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    Citations

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    Cited by:

    1. Neelesh Gounder & Paresh Kumar Narayan & Arti Prasad, 2007. "An empirical investigation of the relationship between government revenue and expenditure," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 34(3), pages 147-158, February.
    2. Yaya Keho, 2010. "Spending Cuts or Tax Adjustments: How Can UEMOA Countries Control Their Budget Deficits?," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 9(3), pages 233-252, December.

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    More about this item

    Keywords

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    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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