Testing for causality between government spending and taxation |
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| Authors: | George Provopoulos Athanassios Zambaras |
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| Institution: | 1. Institute of Industrial and Economic Research, 12-14 Mitropoleos Str., GR-105 63, Athens
2. Department of Parliamentary Research, Chamber of Deputies, Greece
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| Abstract: | In the past few years the public sector deficit in Greece has reached alarmingly high levels. In view of the various hypotheses about the relation between government spending and revenues, we test for causality between these two determinants of public deficit. |
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