Spend-and-tax: a panel data investigation for the EU

Antonio Afonso and Christophe Rault

Economics Bulletin, 2009, vol. 29, issue 4, 2542-2548

Abstract: Using bootstrap panel analysis, allowing for cross-country correlation, without the need of pre-testing for unit roots, we study the causality between government spending and revenue for the EU in the period 1960-2006. We find spend-and-tax causality for Italy, France, Spain, Greece, and Portugal, while tax-and-spend evidence is present for Germany, Belgium, Austria Finland and the UK, and for several EU New Member States. Moreover, in the run-up to EMU there was some shifting away from a spend-and-tax strategy, implying adjustments of fiscal behaviour.

Keywords: panel causality; fiscal policy; EU (search for similar items in EconPapers)
JEL-codes: C3 E6 (search for similar items in EconPapers)
Date: 2009-10-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I4-P7.pdf (application/pdf)

Related works:
Working Paper: Spend-and-tax: A Panel Data Investigation for the EU (2009)
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:ebl:ecbull:eb-09-00300

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().