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Original Articles

The causal relationship between taxes and expenditures in the G7 countries: cointegration and error-correction models

Pages 19-22 | Published online: 05 Oct 2010

Keep up to date with the latest research on this topic with citation updates for this article.

Read on this site (21)

Randolph Nsor-Ambala & Emmanuel Asafo-Adjei. (2023) The government revenue – expenditure nexus in Ghana: A wavelet analysis. Cogent Economics & Finance 11:1.
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Vaseem Akram & Badri Narayan Rath. (2019) Is there any evidence of tax-and-spend, spend-and-tax or fiscal synchronization from panel of Indian state?. Applied Economics Letters 26:18, pages 1544-1547.
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Mihai Mutascu. (2017) The tax–spending nexus: evidence from Romania using wavelet analysis. Post-Communist Economies 29:3, pages 431-447.
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George A Vamvoukas. (2012) Panel data modelling and the tax-spend controversy in the euro zone. Applied Economics 44:31, pages 4073-4085.
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Lusine Lusinyan & John Thornton. (2012) The intertemporal relation between government revenue and expenditure in the United Kingdom, 1750 to 2004. Applied Economics 44:18, pages 2321-2333.
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Edward E. Ghartey. (2010) Cointegration and Causal Relationship between Taxes and Spending for Kenya, Nigeria and South Africa. International Economic Journal 24:2, pages 267-282.
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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 6:1, pages 99-107.
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Paresh Kumar Narayan & Seema Narayan. (2006) Government revenue and government expenditure nexus: evidence from developing countries. Applied Economics 38:3, pages 285-291.
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Christopher G. Reddick. (2003) Long‐Run and Short‐Run Budgeting: Theories and Empirical Evidence for the Canadian Provinces. International Journal of Public Administration 26:4, pages 427-453.
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Muhammad Q. Islam. (2001) Structural break, unit root, and the causality between government expenditures and revenues. Applied Economics Letters 8:8, pages 565-567.
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Christos Kollias & Stelios Makrydakis. (2000) Tax and spend or spend and tax? Empirical evidence from Greece, Spain, Portugal and Ireland. Applied Economics 32:5, pages 533-546.
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Gerard Antioch. (1998) Fiscal policy dynamics in Australia and New Zealand. Applied Economics Letters 5:9, pages 539-541.
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James E. Payne. (1997) International evidence on the sustainability of budget deficits. Applied Economics Letters 4:12, pages 775-779.
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James E. Payne. (1997) The tax-spend debate: the case of Canada. Applied Economics Letters 4:6, pages 381-386.
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Mohammad Hasan & Ian Lincoln. (1997) Tax then spend or spend then tax? Experience in the UK, 1961–93. Applied Economics Letters 4:4, pages 237-239.
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Articles from other publishers (44)

Yu Wang & William X. Wei. (2023) The Nexus between Federal Revenue and Spending in Canada: A Time-Frequency Perspective. Statistics, Politics and Policy 14:1, pages 113-123.
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Ayoka Cynthia Odinakachi, Nzotta Samuel Mbadike & Kanu Success Ikechi. (2021) The Effect of Federal Government Revenue and Expenditure On Economic Growth in Nigeria – An Empirical Review. International Journal of Innovation and Economic Development 7:3, pages 34-52.
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Mak B. Arvin, Rudra P. Pradhan & Mahendhiran S. Nair. (2021) Are there links between institutional quality, government expenditure, tax revenue and economic growth? Evidence from low-income and lower middle-income countries. Economic Analysis and Policy 70, pages 468-489.
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Alper Aykut EKİNCİ. (2020) CAUSALITY BETWEEN EXCISE TAX REVENUE AND GOVERNMENT SPENDING IN OECD COUNTRIESOECD ÜLKELERİNDE ÖZEL TÜKETİM VERGİ GELİRİ VE DEVLET HARCAMALARI ARASINDAKİ NEDENSELLİK. Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 38:4, pages 721-741.
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Juan Carlos Cuestas, Luis A. Gil-Alana & Laura Sauci. (2018) Public finances in the EU-27: Are they sustainable?. Empirica 47:1, pages 181-204.
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Cosimo Magazzino, Gordon L. Brady & Francesco Forte. (2019) A panel data analysis of the fiscal sustainability of G-7 countries. The Journal of Economic Asymmetries 20, pages e00127.
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Syed Ali RazaSyed Zaki HassanArshian Sharif. (2019) Asymmetric Relationship Between Government Revenues and Expenditures in a Developing Economy: Evidence from a Non-linear Model. Global Business Review 20:5, pages 1179-1195.
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Chung Yan Sam, Robert McNown & Soo Khoon Goh. (2019) An augmented autoregressive distributed lag bounds test for cointegration. Economic Modelling 80, pages 130-141.
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A. Phiri. (2017) Asymmetries in the revenue–expenditure nexus: new evidence from South Africa. Empirical Economics 56:5, pages 1515-1547.
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Tobias Basse. (2019) The impact of the financial crisis on the dividend policy of the european insurance industry: additional empirical evidence. Zeitschrift für die gesamte Versicherungswissenschaft 108:1, pages 3-17.
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Hakan ÇETİNTAŞ & Damira BAYGONUŞOVA. (2017) KAMU HARCAMALARI VE GELİRLERİ ARASINDAKİ İLİŞKİNİN TEST EDİLMESİ: KIRGIZİSTAN ÖRNEĞİ. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, pages 1-1.
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Chaido Dritsaki. 2017. Advances in Applied Economic Research. Advances in Applied Economic Research 255 268 .
A.L.M. Aslam. (2016) Tax Revenue and Government Expenditure in Sri Lanka: An Econometric AEG Testing Approach. International Letters of Social and Humanistic Sciences 66, pages 31-37.
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Moses Obinyeluaku. 2015. Regional Integration and Policy Challenges in Africa. Regional Integration and Policy Challenges in Africa 278 301 .
Emmanouil Trachanas & Constantinos Katrakilidis. (2013) Fiscal deficits under financial pressure and insolvency: Evidence for Italy, Greece and Spain. Journal of Policy Modeling 35:5, pages 730-749.
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Suzanna-Maria Paleologou. (2013) Asymmetries in the revenue–expenditure nexus: A tale of three countries. Economic Modelling 30, pages 52-60.
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Michele Dalena & Cosimo Magazzino. (2012) Public Expenditure and Revenue in Italy, 1862–1993. Economic Notes 41:3, pages 145-172.
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James W. Saunoris & James E. Payne. (2010) Tax more or spend less? Asymmetries in the UK revenue–expenditure nexus. Journal of Policy Modeling 32:4, pages 478-487.
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Edward E. Ghartey. (2008) The budgetary process and economic growth: Empirical evidence of the Jamaican economy. Economic Modelling 25:6, pages 1128-1136.
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Bradley T. Ewing, James E. Payne, Mark A. Thompson & Omar M. Al‐Zoubi. (2006) Government Expenditures and Revenues: Evidence from Asymmetric Modeling. Southern Economic Journal 73:1, pages 190-200.
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Christos Kollias & Susana‐Maria Paleologou. (2006) Fiscal policy in the European Union. Journal of Economic Studies 33:2, pages 108-120.
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Ihsan Gunaydin & Ekrem Tatoglu. (2005) Does Foreign Direct Investment Promote Economic Growth? Evidence from Turkey. Multinational Business Review 13:2, pages 89-106.
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Paresh Kumar Narayan. (2005) The government revenue and government expenditure nexus: empirical evidence from nine Asian countries. Journal of Asian Economics 15:6, pages 1203-1216.
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James E. Payne. (2016) A Survey of the International Empirical Evidence on the Tax-Spend Debate. Public Finance Review 31:3, pages 302-324.
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Christopher G. Reddick & Seid Y. Hassan. (2003) Long-run and short-run budgeting: empirical evidence for canada, uk, and usa. Journal of Public Budgeting, Accounting & Financial Management 15:3, pages 354-379.
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Ali F. Darrat. (2008) BUDGET BALANCE THROUGH SPENDING CUTS OR TAX ADJUSTMENTS?. Contemporary Economic Policy 20:3, pages 221-233.
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Qing Wang & Ugo Fasano-Filho. (2002) Testing the Relationship Between Government Spending and Revenue: Evidence From GCC Countries. IMF Working Papers 02:201, pages 1.
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Abdulnasser Hatemi-J. (2002) Fiscal policy in Sweden: effects of EMU criteria convergence. Economic Modelling 19:1, pages 121-136.
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Toshihiro Ihori, Takero Doi & Hiroki Kondo. 2002. Government Deficit and Fiscal Reform in Japan. Government Deficit and Fiscal Reform in Japan 107 122 .
Toshihiro Ihori, Takero Doi & Hiroki Kondo. (2001) Japanese fiscal reform: fiscal reconstruction and fiscal policy. Japan and the World Economy 13:4, pages 351-370.
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Jean-Claude Nachega & Ousmane Dore. (2000) Budgetary Convergence in the WEAMU: Adjustment Through Revenue or Expenditure?. IMF Working Papers 00:109, pages 1.
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Sophie Garcia & Pierre-Yves Hénin. (1999) Balancing budget through tax increases or expenditure cuts: is it neutral?. Economic Modelling 16:4, pages 591-612.
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Benjamin S. Cheng. (1999) Causality between taxes and expenditures: Evidence from Latin American countries. Journal of Economics and Finance 23:2, pages 184-192.
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Ali F. Darrat. (1998) Tax and Spend, or Spend and Tax? An Inquiry into the Turkish Budgetary Process. Southern Economic Journal 64:4, pages 940-956.
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Kevin L. Ross & James E. Payne. (2016) A Reexamination of Budgetary Disequilibria. Public Finance Review 26:1, pages 67-79.
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Xiaoming Li. (1999) The Causal Relationship Between Government Revenue and Expenditure in China: An Application of VEC and VAR Modelling. SSRN Electronic Journal.
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Niaz Hussain Ghumro. (2014) The Nexus between Tax Revenue and Expenditure: An Investigation of Causality via Error-Correction Models. SSRN Electronic Journal.
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Ioannis Chrysostomos Pragidis, Periklis Gogas, Vasilios Plakanadaras & Theophilos Papadimitriou. (2013) Fiscal Shocks and Asymmetric Effects: A Comparative Analysis. SSRN Electronic Journal.
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Francis White Loloh & Benjamin Amoah. (2008) Causal Linkages between Government Revenue and Expenditure: Evidence from Ghana. SSRN Electronic Journal.
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Dushko Josheski & Cane Koteski. (2011) The Causal Relationship between Patent Growth and Growth of GDP with Quarterly Data in the G7 Countries: Cointegration, ARDL and Error Correction Models. SSRN Electronic Journal.
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