The Intertemporal Relationship between State and Local Government Revenues and Expenditures: Evidence from OECD Countries
This paper addresses the intertemporal relationship between state and local government revenues and expenditures in sixteen OECD countries. The results support both the spend-and-tax hypothesis and the tax-and-spend hypothesis. The results also highlight the importance of controlling for the effects of grants in bivariate causality tests between revenues and expenditures at the sub- national level. The paper also provides a comparison of the intertemporal relationship between government revenues and expenditures at the central and subnational levels.
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Volume (Year): 45 (1990)
Issue (Month): 1 ()
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