, we study the causality between government spending and revenue for the EU in the period 1960-2006. We find spend-and-tax … causality for Italy, France, Spain, Greece, and Portugal, while tax-and-spend evidence is present for Germany, Belgium, Austria … spend-and-tax strategy, implying adjustments of fiscal behaviour. …

: quarterly fiscal variables on accrual basis and a time series estimate of tax evasion for the period 1981:1-2006:4. Following … unless the dynamics of the hidden and regular components of the GDP are disentangled. Changes in public spending and the tax … rate generate a reallocation from underground to the regular economy which contributes to obscure the spending and tax …