The revenues-expenditures nexus: panel data evidence from Swedish municipalities

Matz Dahlberg () and Eva Johansson

Applied Economics, 1998, vol. 30, issue 10, 1379-1386

Abstract: This paper examines the dynamic relationship between local government revenues and expenditures in Sweden. Results from a panel of 265 municipalities covered over the time period 1974-87 show that (i) expenditures cause revenues, while revenues do not cause expenditures, (ii) intergovernmental grants both cause and are caused by expenditures and revenues, (iii) lags of four years are needed to describe the dynamics among the fiscal variables and (iv) the parameters of the expenditures equation are time varying. These results cast doubt on static modeling of local government activities and on models imposing time invariant parameters without ever testing for it.

Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/000368498324995 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:v:30:y:1998:i:10:p:1379-1386

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/000368498324995

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().