Tax-and-spend or spend-and-tax? Empirical evidence from malaysia
The paper investigates the causal relationships between government spending and revenue for Malaysia. The study uses annual data, a Johansen cointegration test and an error-correction model. A preliminary test shows that government revenue and expenditure are cointegrated. Empirical results support...
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my.uniten.dspace-306682023-12-29T15:51:05Z Tax-and-spend or spend-and-tax? Empirical evidence from malaysia Hong T.J. 35188954800 Cointegration Error-correction model Fiscal policy Government spending and revenue The paper investigates the causal relationships between government spending and revenue for Malaysia. The study uses annual data, a Johansen cointegration test and an error-correction model. A preliminary test shows that government revenue and expenditure are cointegrated. Empirical results support the spend-and-tax hypothesis. Furthermore, they underscore the fact that fiscal policy may not be effective enough to curb the rising budget deficits over the long term and may even reduce private saving and investment. Extensive expenditure reforms through fiscal synchronisation are suggested. Final 2023-12-29T07:51:05Z 2023-12-29T07:51:05Z 2009 Article 2-s2.0-70749144117 https://www.scopus.com/inward/record.uri?eid=2-s2.0-70749144117&partnerID=40&md5=ef417f4327588d30834786d4f3375e55 https://irepository.uniten.edu.my/handle/123456789/30668 5 1 107 115 Scopus |
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Cointegration Error-correction model Fiscal policy Government spending and revenue |
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Cointegration Error-correction model Fiscal policy Government spending and revenue Hong T.J. Tax-and-spend or spend-and-tax? Empirical evidence from malaysia |
| description |
The paper investigates the causal relationships between government spending and revenue for Malaysia. The study uses annual data, a Johansen cointegration test and an error-correction model. A preliminary test shows that government revenue and expenditure are cointegrated. Empirical results support the spend-and-tax hypothesis. Furthermore, they underscore the fact that fiscal policy may not be effective enough to curb the rising budget deficits over the long term and may even reduce private saving and investment. Extensive expenditure reforms through fiscal synchronisation are suggested. |
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35188954800 |
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35188954800 Hong T.J. |
| format |
Article |
| author |
Hong T.J. |
| author_sort |
Hong T.J. |
| title |
Tax-and-spend or spend-and-tax? Empirical evidence from malaysia |
| title_short |
Tax-and-spend or spend-and-tax? Empirical evidence from malaysia |
| title_full |
Tax-and-spend or spend-and-tax? Empirical evidence from malaysia |
| title_fullStr |
Tax-and-spend or spend-and-tax? Empirical evidence from malaysia |
| title_full_unstemmed |
Tax-and-spend or spend-and-tax? Empirical evidence from malaysia |
| title_sort |
tax-and-spend or spend-and-tax? empirical evidence from malaysia |
| publishDate |
2023 |
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1806427966952964096 |
| score |
13.188404 |