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Applied Economics Letters Volume 6, 1999 - Issue 10
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Original Articles

The causal nexus of government spending and revenue in Finland: a bootstrap approach

Abdulnasser Hatemi-J
&
Ghazi Shukur
Pages 641-644 | Published online: 07 Oct 2010
 
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Abstract

Applying VAR(5), a bootstrap simulation approach and a multivariate Rao's F-test indicate that government revenue Granger-causes spending in Finland. This does not agree with Barr's tax smoothing hypothesis. This explanation of this is due to the institutional factors that are specific for Finland.

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