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The Causal Relationship Between Government Spending and Revenue: An Empirical Study from Greece

Chaido Dritsaki ()
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Chaido Dritsaki: Technological Educational Institute of Western Macedonia

Chapter Chapter 18 in Advances in Applied Economic Research, 2017, pp 255-268 from Springer

Abstract: Abstract This paper examines the relationship between government spending and revenues in Greece for the 1980–2015 period, using cointegration autoregressive distributed lag test (ARDL test) as well as causality test developed by Toda and Yamamoto. The results of cointegration of ARDL test showed that there is a cointegrated relationship between government spending and revenues. Also, causality test showed that there is a unidirectional causal relationship between spending and revenues in Greece with direction from government spending toward revenues.

Keywords: Government spending; Government revenue; ARDL bounds testing; Toda and Yamamoto causality test; C50; E23; J24 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-48454-9_18

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DOI: 10.1007/978-3-319-48454-9_18

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