An analysis of duration dependence of government revenue expansions and contractions in Developing Countries

Sèna Kimm Gnangnon
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Sèna Kimm Gnangnon: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique

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Abstract: In this paper, we employ the discrete-time duration model to examine whether expansion and contraction phases of government revenue exhibit duration dependence. We hence use an unbalanced panel data of public revenue on 68 developing countries over the period 1980-2009. The analysis also covers the sub-samples of sub-Saharan African and Non sub-Saharan African countries. Our findings suggest that once controlling for frailty and economic variables, the likelihood of public revenue expansion and contraction ending appears to be positively affected by their actual age: government revenue expansion and contraction exhibit in developing countries positive duration dependence.

Keywords: Government Revenue; Discrete-time model; Duration dependence (search for similar items in EconPapers)
Date: 2012-07-31
New Economics Papers: this item is included in nep-dev
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