GOVERNMENT REVENUES AND EXPENDITURES IN GUINEA-BISSAU: CAUSALITY AND COINTEGRATION

Francisco Carneiro, Joao Faria and Boubacar S. Barry
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Boubacar S. Barry: The World Bank

Journal of Economic Development, 2005, vol. 30, issue 1, 107-117

Abstract: The paper establishes empirically the temporal causality and long run relationship between government expenditures and government revenues for the case of Guinea-Bissau - a low income country under stress (LICUS) in Africa. A macroeconomic model is developed to lay out the hypothesis of a spend-tax behavior in the country¡¯s public finances management system. Empirical validation is carried out by means of a traditional Granger-causality test and the estimation of an error correction model between expenditures and revenues.

Keywords: Public Finances; Causality Tests; Cointegration Analysis (search for similar items in EconPapers)
JEL-codes: C5 H6 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:30:y:2005:i:1:p:107-117

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