Government expenditures and revenues in Jordan, what cause what? Multivariate cointegration analysis

Research output: Contribution to journalArticlepeer-review

Abstract

The hypotheses of tax-and-spend, spend-and-tax, and fiscal synchronization were tested using annual time series data for Jordan over the period 1969-2002. We include GDP as a control variable into the model. The results from Granger causality test and impulse response function and variance decomposition analysis based on the corresponding multivariate error-correction models suggest feedback effect between government revenues and government expenditures, supporting the fiscal synchronization hypothesis for Jordan.

Original languageEnglish
Pages (from-to)14-26
Number of pages13
JournalEkonomska Istrazivanja
Volume18
Issue number1
Publication statusPublished - Aug 5 2005
Externally publishedYes

Keywords

  • Cointegration
  • Fiscal policy
  • Government expenditures
  • Government revenues
  • Jordan economy

ASJC Scopus subject areas

  • Economics and Econometrics

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