Authors
Advisor(s)
Abstract(s)
Using bootstrap panel analysis, allowing for cross-country correlation, without the need of pre-testing for unit roots, we study the causality between government revenue and spending for the EU in the period 1960-2006. Spend-and-tax causality is found for Italy, France, Spain, Greece, and Portugal, while tax-and-spend evidence is present for Germany, Belgium, Austria, Finland and the UK, and for several EU New Member States.
Description
Keywords
panel causality fiscal policy
Pedagogical Context
Citation
Afonso, António e Christophe Rault. 2009. "Bootstrap panel Granger-causality between government spending and revenue in the EU". William Davidson Institute Working Paper nº 944-2009
Publisher
The William Davidson Institute at the University of Michigan