Spend-and-Tax: A Panel Data Investigation for the EU

descriptionPublicationkeyboard_double_arrow_right Article , Research , Preprint 01 Jan 2009 Portugal English Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

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Authors: António Afonso; Christophe Rault;

doi: 10.2139/ssrn.1433678

handle: 10400.5/25664 , 10419/30639

Spend-and-Tax: A Panel Data Investigation for the EU

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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 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 Finland and the UK, and for several EU New Member States. Moreover, in the run-up to EMU there was some shifting away from a spend-and-tax strategy, implying adjustments of fiscal behaviour.

info:eu-repo/semantics/publishedVersion

Country

Portugal

Related Organizations

Institute for the Study of Labor
Germany
UNIVERSITE D'ORLEANS
France
University of Orléans
France
Universidade de Lisboa
Portugal
Laboratoire Pluridisciplinaire de Recherche en Ingénierie, Systèmes Mécanique et Energie
France

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Keywords

ddc:330, Finanzpolitik, Steuervermeidung, panel causality, Panel Causality, panel causality, fiscal policy, EU, Fiscal Policy, Kausalanalyse, EU-Staaten, E62, EU, fiscal policy, Öffentliche Ausgaben, C23, H62, jel: jel:E62, jel: jel:C23, jel: jel:H62, jel: jel:C3, jel: jel:E6

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