Causality between taxes and expenditures: Evidence from Latin American countries

Benjamin Cheng ()

Journal of Economics and Finance, 1999, vol. 23, issue 2, 184-192

Abstract: The paper applies the techniques of cointegration and Hsiao’s version of the Granger causality method to examine the causality between taxes and expenditures for eight Latin American countries. The findings of bidirectional causality between taxes and expenditures in Chile, Panama, Brazil, and Peru indicate that taxes and expenditures are jointly determined. This study, however, detects causality running one way from taxes to expenditures in Columbia, the Dominican Republic, Honduras, and Paraguay. Taken together, this study strongly rejects the spend-and-tax hypothesis. (JEL C320, E620) Copyright Springer 1999

Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://hdl.handle.net/10.1007/BF02745952 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jecfin:v:23:y:1999:i:2:p:184-192

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/12197/PS2

DOI: 10.1007/BF02745952

Access Statistics for this article

Journal of Economics and Finance is currently edited by James Payne

More articles in Journal of Economics and Finance from Springer, Academy of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().