On the Causal Relationship between Government Expenditure and Tax Revenue in Pakistan

M. Haider Hussain

Macroeconomics from EconWPA

Abstract: This paper applies the technique of Granger Causality to determine the relationship between total government expenditures and total tax revenue using annual revised estimates. The analysis discovers a firm unidirectional effect from expenditure to revenue suggesting the preference of controlling the spending decisions to reduce the tax revenue-expenditure deficit.

Keywords: Expenditure; Tax Revenue; Causality (search for similar items in EconPapers)
JEL-codes: E (search for similar items in EconPapers)
Date: 2005-09-07
Note: Type of Document - pdf; pages: 12
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpma:0509014

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