Fiscal consolidation in Spain: dynamic interdependence of public spending and revenues
Francisco de Castro Fernández (),
José Manuel González-Páramo () and
Pablo Hernández de Cos
Additional contact information
José Manuel González-Páramo: Universidad Complutense de Madrid
Investigaciones Economicas, 2004, vol. 28, issue 1, 193-207
Meeting fiscal targets set out in the Stability and Growth Pact for EMU countries requires the correction of fiscal imbalances. We consider what is the most efficient strategy to achieve permanent reductions in fiscal defficits in Spain. We analyse the possible interdependence between expenditure and revenues by performing standard Granger causality tests. We find that there is a bias towards defficit in public sector size and long-run bidirectional causality between public revenues and expenditure, although the direction of causality seems to hold mainly from public expenditure to revenues. Achieving fiscal consolidation should be based reducing structural public expenditure. (Copyright: Fundación SEPI)
Keywords: Fiscal consolidation; causality; cointegration (search for similar items in EconPapers)
JEL-codes: E61 H60 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
https://www.fundacionsepi.es/investigacion/revista ... /Ene2004/v28i1a7.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iec:inveco:v:28:y:2004:i:1:p:193-207
Ordering information: This journal article can be ordered from
https://www.fundacio ... tas/presentacion.asp
Access Statistics for this article
Investigaciones Economicas is currently edited by Antonio Cabrales and Pedro Mira
More articles in Investigaciones Economicas from Fundación SEPI Investigaciones Economicas Fundación SEPI Quintana, 2 (planta 3) 28008 Madrid Spain.
Bibliographic data for series maintained by Isabel Sánchez-Seco ().