Fiscal Policy in Sweden: Effects of EMU Criteria Convergence

Abdulnasser Hatemi-J

No 1999:5, Working Papers from Lund University, Department of Economics

Abstract: This paper investigates the sustainability of fiscal policy in Sweden performed during the period 1963:01-1997:04. On the basis of Johansen's VAR and the augmented Granger causality tests, the results show that taxes and spending are causally related in the long-run and the homogeneity condition is supported empirically. The effect of EMU criteria convergence on fiscal policy is also investigated empirically. “Pantula principle” is applied for determining the form of deterministic trend component. Special attention is given to the lag-choosing process.

Keywords: Spending; revenue; Granger causality; cointegration; Johansen's VAR; EMU (search for similar items in EconPapers)
JEL-codes: C32 H21 H62 (search for similar items in EconPapers)
Pages: 27 pages
Date: 1999-09-21, Revised 1999-11
New Economics Papers: this item is included in nep-his
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Citations: View citations in EconPapers (11)

Published in Economic Modelling, 2002, pages 121-136.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lunewp:1999_005

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