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The causal nexus of government spending and revenue in Finland: a bootstrap approach

Abdulnasser Hatemi-J and Ghazi Shukur

Applied Economics Letters, 1999, vol. 6, issue 10, 641-644

Abstract: Applying VAR(5), a bootstrap simulation approach and a multivariate Rao's F-test indicate that government revenue Granger-causes spending in Finland. This does not agree with Barr's tax smoothing hypothesis. This explanation of this is due to the institutional factors that are specific for Finland.

Date: 1999
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DOI: 10.1080/135048599352411

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