“Revenue-led Spending” or “Spending-led Revenue” : Evidence from Iran (1978-2012)
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| Pages: | 3 : 19 |
| Abstract: |
The main purpose of this study is to investigate the Long and short Run relationship between government revenue and government expenditure in Iran Country covering data 1978- 2012 with using An Auto Regressive Distributive Lag (ARDL) Approach. We investigated causality between revenue and government expenditure by using an application of Toda-Yamamoto approach. Autoregressive Distributeded Lag (ARDL) technique is used to describe both long run relationships and short run dynamic adjustments between government revenue and expenditure variables. The results of this paper support the Freidman (1978) hypothesis that government revenues cause expenditure and revenues have a positive causal impact on government expenditure. |
| JEL classification: | C12, O17, C52 |
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