The spend-and-tax or tax-and-spend: Further evidence for the Brazilian imperial period

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    Abstract

    This article tests the flows of rents during the Brazilian Imperial period. To achieve this goal, a Vector of Error Correction Model (VECM) was employed to test longrun and short-run relationships between government revenues and expenditures. The VECM was applied for the entire imperial period with data available (1836-1889) and for the period after the Law Alves Branco (1844-1889), which more than doubled tariffs on imports. A trivariate causality test fails to show a casual relationship among the variables in any direction, regardless of the period tested. When the augmented granger causality test is employed for the entire period, results show a unidirectional causality from government expenditures to revenues, a spend-to-tax model, and a bi-causality relationship for the 1844-1889 period.

    Original languageEnglish
    Pages (from-to)255-263
    Number of pages9
    JournalHistorical Social Research
    Volume33
    Issue number4
    Publication statusPublished - Jan 1 2008

    Keywords

    • Imperial Brazil
    • Spend-and-tax
    • VECM

    ASJC Scopus subject areas

    • History
    • Sociology and Political Science
    • Social Sciences(all)

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