Tax or Spend, What Causes What: Taiwan's Experience

Tsangyao Chang and Yuan-Hong Ho
Additional contact information
Yuan-Hong Ho: Department of Public Finance, Feng Chia University, Taiwan

International Journal of Business and Economics, 2002, vol. 1, issue 2, 157-165

Abstract: In this paper we tested the hypothesis of tax-and-spend, spend-and-tax, or fiscal synchronization for Taiwan using annual data covering the 1967 to 1999 period. Granger causality test results based on the corresponding vector error-correction models (ECM) suggest unidirectional causality running from government revenues to government expenditures, thus supporting the tax-and-spend hypothesis for Taiwan.

Keywords: tax-and-spend; spend-and-tax; fiscal synchronization; Taiwan (search for similar items in EconPapers)
JEL-codes: C32 H62 (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.01-2/pdf/vol_1-2-7.pdf (application/pdf)
https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.01-2/abstract/07.html (text/html)

Related works:
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:ijb:journl:v:1:y:2002:i:2:p:157-165

Access Statistics for this article

International Journal of Business and Economics is currently edited by Hsiang-Tsai Chiang (Editor-in-Chief), Chiung-Ju Huang (Editor-in-Chief), Feng-Jyh Lin (Associate Editor), Tzu-Ching Weng (Associate Editor), Hsin-Yi Huang (Managing Editor) and Szu-Hsien Ho (Managing Editor)

More articles in International Journal of Business and Economics from School of Management Development, Feng Chia University, Taichung, Taiwan Contact information at EDIRC.
Bibliographic data for series maintained by Szu-Hsien Ho ().