Tax then spend or spend then tax? Experience in the UK, 1961-93

Mohammad Hasan and Ian Lincoln

Applied Economics Letters, 1997, vol. 4, issue 4, 237-239

Abstract: Using a hybrid of cointegration theory and Granger-Akaike's synthesis of modelling strategy, we have reexamined the causal relationship between tax revenue and government spending in the UK in a cointegrated VAR model. The results are indicative of a bi-directional causality between revenue and spending.

Date: 1997
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DOI: 10.1080/758518502

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