AN EXAMINATION OF THE CAUSAL RELATIONSHIP BETWEEN GOVERNMENT SPENDINGAND REVENUE - A COINTEGRATION ANALYSIS

Authors
HONDROYIANNIS G PAPAPETROU E
Citation
G. Hondroyiannis et E. Papapetrou, AN EXAMINATION OF THE CAUSAL RELATIONSHIP BETWEEN GOVERNMENT SPENDINGAND REVENUE - A COINTEGRATION ANALYSIS, Public choice, 89(3-4), 1996, pp. 363-374
Citations number
24
Categorie Soggetti
Economics,"Political Science
Journal title
Public choice → ACNP
ISSN journal
00485829
Volume
89
Issue
3-4
Year of publication
1996
Pages
363 - 374
Database
ISI
SICI code
0048-5829(1996)89:3-4<363:AEOTCR>2.0.ZU;2-Y
Abstract
This paper tests the validity of the proposition that there is a causa l relationship between government expenditure and government revenue f or Greece over the period 1957-1993. The empirical analysis employs te sts of cointegration as pre-tests for Granger tests of causality. The empirical evidence suggests that there is a long-run relationship betw een government spending and government revenue and expenditures cause revenues.