Bootstrap Panel Granger-Causality Between Government Spending and Revenue in the EU

13 Pages Posted: 14 Oct 2009

See all articles by Christophe Rault

Christophe Rault

IZA Institute of Labor Economics; University of Orleans; CESifo (Center for Economic Studies and Ifo Institute)

Antonio Afonso

affiliation not provided to SSRN

Date Written: October 13, 2009

Abstract

Using bootstrap panel analysis, allowing for cross-country correlation, without the need of pre-testing for unit roots, we study the causality between government revenue and spending for the EU in the period 1960-2006. Spend-and-tax causality is found for Italy, France, Spain, Greece, and Portugal, while tax-and-spend evidence is present for Germany, Belgium, Austria, Finland and the UK, and for several EU New Member States.

Keywords: panel causality, fiscal policy, EU

JEL Classification: C23, E62, H62

Suggested Citation

Rault, Christophe and Rault, Christophe and Afonso, Antonio, Bootstrap Panel Granger-Causality Between Government Spending and Revenue in the EU (October 13, 2009). William Davidson Institute Working Paper No. 944, Available at SSRN: https://ssrn.com/abstract=1488334 or http://dx.doi.org/10.2139/ssrn.1488334

Christophe Rault (Contact Author)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

University of Orleans ( email )

Rue de Blois
BP 6739
LEO, Orleans, Orleans cedex 2 45067
France

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Antonio Afonso

affiliation not provided to SSRN ( email )

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
101
Abstract Views
692
Rank
476,054
PlumX Metrics