The causal nexus of government spending and revenue in Finland: a bootstrap approach

Applying VAR(5), a bootstrap simulation approach and a multivariate Rao's F-test indicate that government revenue Granger-causes spending in Finland. This does not agree with Barr's tax smoothing hypothesis. This explanation of this is due to the institutional factors that are specific for Finland.

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Year of publication:	1999
Authors:	Hatemi-J, Abdulnasser ; Shukur, Ghazi
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 6.1999, 10, p. 641-644
Publisher:	Taylor & Francis Journals

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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