|
|
| Volume2, No. 2,
August
2003
|
Back |
| Tax
or Spend, What causes What? Reconsidering Taiwan’s Experience |
|
|
| Scott
M. Fuess, Jr. |
|
|
Department of Economics,
University of Nebraska-Lincoln, U.S.A and IZA. |
| Jack
W. Hou |
|
| Department
of Economics, California State University-Long Beach, U.S.A. |
|
|
| Meghan
Millea |
|
Department of Finance and
Economics, Mississippi State University, U.S.A. |
| |
| Abstract |
|
| |
|
Earlier
research suggests that there has been one-way causality from government
revenues to expenditures in Taiwan. This study measures linear
feedback to (1) decompose the relationship between Taiwan’s government
spending and receipts and (2) account for contemporaneous association.
Despite substantial fiscal synchronization, we still find one-way
causality from government receipts to expenditures. |
|
|
|
|
Key words: budget
deficits; time-series methods
|
| JEL
classification:
H62; H60; C32 |
|
|
|