Revenue and Expenditure Nexus: A Case Study of Romania
This 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.
|Date of creation:||10 Dec 2010|
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- Chengliang Yan & Liutang Gong, 2009.
"Government expenditure, taxation and long-run growth,"
Frontiers of Economics in China,
Springer, vol. 4(4), pages 505-525, December.
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- M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
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- Shyh-Wei Chen, 2008. "Untangling the web of causalities among four disaggregate government expenditures, government revenue and output in Taiwan," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 6(1), pages 99-107.
- James Payne & Hassan Mohammadi & Murat Cak, 2008. "Turkish budget deficit sustainability and the revenue-expenditure nexus," Applied Economics, Taylor & Francis Journals, vol. 40(7), pages 823-830.
- Andreea Stoian, 2008. "Analyzing Causality Between Romania’S Public Budget Expenditures And Revenues," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 11(11(528)(s), pages 60-64, November.
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