Prague Economic Papers 2019, 28(6):633-647 | DOI: 10.18267/j.pep.697

The Government Spending-Revenue Nexus in CEE Countries: Some Evidence for Asymmetric Effects

Mesut Karakasa, Taner Turana
a Gebze Technical University, Faculty of Business Administration, Turkey

This paper investigates the government spending-revenue nexus for Croatia, Czechia, Hungary, Poland, Romania and Slovenia by using quarterly data and a nonlinear autoregressive distributed lag (NARDL) approach to cointegration. Our empirical findings support the fiscal synchronization for Slovenia, spend-tax for Czechia, tax-spend for Croatia and Hungary, and institutional separation or fiscal neutrality for Romania and Poland in the long run. Moreover, we find an asymmetric effect for Croatia, Czechia, Hungary and Poland in the long run and for all the countries in the short run. Therefore, our results clearly highlight the importance of asymmetric effects in government spending-revenue nexus. Our findings have some policy implications for these countries, such as providing a better coordination of government spending and revenue decisions and paying attention to the asymmetries.

Klíčová slova: spend-tax, tax-spend, fiscal synchronization, asymmetric effects
JEL classification: E62, H20, H50

Vloženo: 3. září 2017; Přijato: 30. duben 2018; Zveřejněno online: 18. září 2019; Zveřejněno: 21. prosinec 2019  Zobrazit citaci

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Karakas, M., & Turan, T. (2019). The Government Spending-Revenue Nexus in CEE Countries: Some Evidence for Asymmetric Effects. Prague Economic Papers, 28(6), 633-647. doi: 10.18267/j.pep.697
Stáhnout citaci
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Zobrazit celý článek

    Reference

    1. Apergis, N., Payne, J. E., Saunoris, J. W. (2012). Tax-spend Nexus in Greece: are there Asymmetries? Journal of Economic Studies, 39(3), 327-336, https://doi.org/10.1108%2F01443581211245900 Přejít k původnímu zdroji...
    2. Aslan, M., Tasdemir, M. (2009). Is Fiscal Synchronization Hypothesis Relevant for Turkey? Evidence from Cointegration and Causality Tests with Endogenous Structural Breaks. Journal of Money, Investment and Banking, 12, 14-25.
    3. Athanasenas, A., Katrakilidis, C., Trachanas, E. (2014). Government Spending and Revenues in the Greek Economy: Evidence from Nonlinear Cointegration. Empirica, 41, 365-2, https://doi.org/10.1007%2Fs10663-013-9221-3 Přejít k původnímu zdroji...
    4. Baghestani, H., McNown, R. (1994). Do Revenues or Expenditures Respond to Budgetary Disequilibria? Southern Economic Journal, 60, 311-322, https://doi.org/10.2307%2F1059979 Přejít k původnímu zdroji...
    5. Barro, R. J. (1979). On the Determination of the Public Debt. Journal of Political Economy, 81, 940-71. Přejít k původnímu zdroji...
    6. Barro, R. J. (2003). There is a lot to like Bush's Tax Plan. Business Week, February 24.
    7. Becker, G., Lazear, E. P., Murphy, K. M. (2004). The Double Benefit of Tax Cuts. Hoover Digest, 1, 128-131.
    8. Bröthaler, J., Getzner, M. (2015). The Tax-Spend Debate and Budgetary Policy in Austria. International Advances in Economic Research, 21(3), 299-315, https://doi.org/10.1007%2Fs11294-015-9532-1 Přejít k původnímu zdroji...
    9. Buchanan, J., Wagner, R. (1977). Democracy in Deficit. New York: Academic Press.
    10. Buchanan, J., Wagner, R. (1978). Dialogues Concerning Fiscal Religion. Journal of Monetary Economics, 4(3), 627-636, https://doi.org/10.1016%2F0304-3932%2878%2990056-9 Přejít k původnímu zdroji...
    11. Chang, T., Chiang, G. (2009). Revisiting the Government Revenue-Expenditure Nexus: Evidence from 15 OECD Countries Based On the Panel Data Approach. Czech Journal of Economics and Finance, 59(2), 165-172.
    12. Chang, T., Liu, W. R., Caudill, S. B. (2002). Tax-and-spend, spend-and-tax, or Fiscal Synchronization: New Evidence for ten Countries. Applied Economics, 34, 1553-561, https://doi.org/10.1080%2F00036840110103265 Přejít k původnímu zdroji...
    13. Enders, W., Siklos, P. (2001). Cointegration and Threshold Adjustment. Journal of Business and Economic Statistics, 19, 166-176, https://doi.org/10.2139%2Fssrn.62008 Přejít k původnímu zdroji...
    14. Ewing, B. T., Payne, J. E., Thompson, M. A., Al-Zoubi, O. M. (2006). Government Expenditures and Revenues: Evidence from Asymmetric Modeling. Southern Economic Journal, 73(1), 190-200, https://doi.org/10.2307%2F20111882 Přejít k původnímu zdroji...
    15. Friedman, M. (1978). The Limitations of Tax Limitation. Policy Review, 7-14.
    16. Hatemi-J, A., Shukur, G. (1999). The Causal Nexus of Government Spending and Revenue in Finland: a Bootstrap Approach. Applied Economics Letters, 6(10), 641-644, https://doi.org/10.1080%2F135048599352411 Přejít k původnímu zdroji...
    17. Hondroyiannis, G., Papapetrou, E. (1996). An Examination of the Causal Relationship between Government Spending and Revenue: a Cointegration Analysis. Public Choice, 89, 363-74, https://doi.org/10.1007%2Fbf00159364 Přejít k původnímu zdroji...
    18. Hoover, K. D., Sheffrin, S. M. (1992). Causation, Spending, and Taxes: Sand in the Sandbox or Tax Collector for the Welfare State? The American Economic Review, 82(1), 225-248.
    19. Irandoust, M. (2017). Government Spending and Revenues in Sweden 1722-2011: Evidence from Hidden Cointegration. Empirica, 1-15, https://doi.org/10.1007%2Fs10663-017-9375-5
    20. Luković, S., Grbić, M. (2014). The Causal Relationship between Government Revenue and Expenditure in Serbia. Economic Themes, 52(2), 127-138, https://doi.org/10.1515%2Fethemes-2014-0009 Přejít k původnímu zdroji...
    21. Meltzer, A. H., Richard, S. F. (1981). A Rational Theory of the Size of Government. Journal of Political Economy, 89, 914-927, https://doi.org/10.1086%2F261013 Přejít k původnímu zdroji...
    22. Miller, S. M., Russek, F. S. (1990). Co-Integration and Error-Correction Models: The Temporal Causality between Government Taxes and Spending. Southern Economic Journal, 57(1), 221-229, https://doi.org/10.2307%2F1060491 Přejít k původnímu zdroji...
    23. Musgrave, R. (1966). Principles of Budget Determination, in Cameron, H., Henderson, W., ed., Public Finance: Selected Readings. New York: Random House, pp. 15-27.
    24. Mutascu, M. (2016). Government Revenues and Expenditures in the East European Economies: A Bootstrap Panel Granger Causality Approach. Eastern European Economics, 54(6), 489-502, https://doi.org/10.1080%2F00128775.2016.1204237 Přejít k původnímu zdroji...
    25. Narayan, P. K., Narayan, S. (2006). Government Revenue and Government Expenditure Nexus: Evidence from Developing Countries. Applied Economics, 38(3), 285-291, https://doi.org/10.1080%2F00036840500369209 Přejít k původnímu zdroji...
    26. Owoye, O., Onafowora, O. A. (2011). The Relationship between Tax Revenues and Government Expenditures in European Union and Non-European Union OECD Countries. Public Finance Review, 39(3), 429-461, https://doi.org/10.1177%2F1091142110386211 Přejít k původnímu zdroji...
    27. Paleologou, S-M. (2013). Asymmetries in the Revenue-Expenditure Nexus: A Tale of Three Countries. Economic Modelling, 30, 52-60, https://doi.org/10.1016%2Fj.econmod.2012.09.022 Přejít k původnímu zdroji...
    28. Park, W. K. (1998). Granger Causality between Government Revenues and Expenditures in Korea. Journal of Economic Development, 23(1), 145-155.
    29. Payne, J. E., Mohammadi, H., Cak, M. (2008). Turkish Budget Deficit Sustainability and the Revenue-Expenditure Nexus. Applied Economics, 40(7), 823-830, https://doi.org/10.1080/00036840600749904 Přejít k původnímu zdroji...
    30. Peacock, A., Wiseman, J. (1979). Approaches to the Analysis of Government Expenditure Growth. Public Finance Review, 7, 3-23, https://doi.org/10.1177%2F109114217900700101 Přejít k původnímu zdroji...
    31. Pesaran, M. H., Shin, Y., Smith, R. J. (2001). Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics, 16, 289-326, https://doi.org/10.1002%2Fjae.616 Přejít k původnímu zdroji...
    32. Ram, R. (1988). Additional Evidence on Causality between Government Revenue and Government Expenditure. Southern Economic Journal, 54(3), 763-769, https://doi.org/10.2307%2F1059018 Přejít k původnímu zdroji...
    33. Romer, C. D., Romer, D. H. (2007). Do Tax Cuts Starve The Beast? The Effect of Tax Changes on Government Spending. NBER. Working Paper No. 13548, https://doi.org/10.3386%2Fw13548 Přejít k původnímu zdroji...
    34. Saunoris, J. W., Payne, J. E. (2010). Tax more or spend less? Asymmetries in the UK Revenue-expenditure Nexus. Journal of Policy Modeling, 32, 478-487, https://doi.org/10.1016%2Fj.jpolmod.2010.05.012 Přejít k původnímu zdroji...
    35. Shin, Y., Yu, B., Greenwood-Nimmo, N. (2014). Modelling Asymmetric Cointegration and Dynamic Multipliers in a Nonlinear ARDL Framework, in Sickels, R., Horrace, W., ed., Festschrift in Honor of Peter Schmidt: Econometric Methods and Applications. Springer, pp. 281-314. Přejít k původnímu zdroji...
    36. Tiwari, A. K., Mutascu, M. (2016). The Revenues-spending Nexus in Romania: a TAR and MTAR Approach. Economic Research-Ekonomska Istraživanja, 29(1), 735-745, https://doi.org/ 10.1080%2F1331677x.2016.1197549 Přejít k původnímu zdroji...
    37. Turan, T., Karakas, M. (2018). The Relationship between Government Spending and Revenue: Nonlinear Bounds Testing Approach (NARDL). Sosyoekonomi, 26(30), 33-48, https://doi.org/10.17233/sosyoekonomi.2018.02.02. Přejít k původnímu zdroji...
    38. Vamvoukas, G. A. (2012). Panel Data Modelling and the Tax-spend Controversy in the Euro Zone. Applied Economics, 44(31), 4073-4085, https://doi.org/10.1080%2F00036846.2011.587777 Přejít k původnímu zdroji...
    39. Wildavsky, A. (1988). The New Politics of the Budgetary Process. Glenview, IL: Scott, Foresman.

    Tento článek je publikován v režimu tzv. otevřeného přístupu k vědeckým informacím (Open Access), který je distribuován pod licencí Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), která umožňuje nekomerční distribuci, reprodukci a změny, pokud je původní dílo řádně ocitováno. Není povolena distribuce, reprodukce nebo změna, která není v souladu s podmínkami této licence.


    Zpět na obsah