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 language | English |
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Pages (from-to) | 14-26 |
Number of pages | 13 |
Journal | Ekonomska Istrazivanja |
Volume | 18 |
Issue number | 1 |
Publication status | Published - Aug 5 2005 |
Externally published | Yes |
Keywords
- Cointegration
- Fiscal policy
- Government expenditures
- Government revenues
- Jordan economy
ASJC Scopus subject areas
- Economics and Econometrics