|
|
| Volume 1, No.
2,
August 2002
|
Back |
| Tax
or Spend, What Causes What: Taiwan's Experience |
|
|
|
Tsangyao Chang |
|
|
Department of Economics,
Feng Chia University, Taiwan |
|
Yuan-Hong Ho |
|
|
Department of Public Finance,
Feng Chia University, Taiwan |
|
|
| Abstract |
|
|
|
| In
this paper we tested the hypothesis of tax-and-spend, spend-and-tax,
or fiscal synchronization for Taiwan using annual data covering
the 1967 to 1999 period. Granger causality test results based on
the corresponding vector error-correction models (ECM) suggest unidirectional
causality running from government revenues to government expenditures,
thus supporting the tax-and-spend hypothesis for Taiwan. |
|
|
|
Key words: tax-and-spend;
spend-and-tax; fiscal synchronization; Taiwan |
JEL
classification:
C32; H62
|
|
|
Back |
|