Tax and spend or spend and tax? Empirical evidence from Greece, Spain, Portugal and Ireland

Christos Kollias and Stelios Makrydakis

Applied Economics, 2000, vol. 32, issue 5, 533-546

Abstract: The paper examines empirically the relationship between government revenues and expenditures in four European countries: Greece, Spain, Ireland, and Portugal. In relative terms all four may be considered as the poorest members of the European Union. Yet, they present a fairly diverse picture as far as their macroeconomic performance and fiscal position is concerned. The empirical findings from cointegration and causality tests that are reported here indicate that in the case of Greece and Ireland tax and spending decisions are taken simultaneously by the fiscal authority, the tax-and-spend hypothesis is supported in the case of Spain, while absence of any causal ordering between government expenditure and tax revenues has been established for Portugal.

Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/000368400322444 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:32:y:2000:i:5:p:533-546

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/000368400322444

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().