Work

The revenues-spending nexus in Romania: a TAR and MTAR approach

Year: 2016

Type: article

Abstract: This study is an attempt to test the relationship between revenues and government spending, in the case of Romania, over the 1999Q1–2012Q1 period. For this purpose, we have chosen the Threshold Autoregressive (TAR) and Momentum-TAR (MTAR) approaches. The main results obtained through the TAR and MTAR models offer support for the spend-tax hypothesis, with long-run asymmetric adjustment for Romania. Considering this case, whenever dealing with budgetary disequilibrium, it is recommended the Romanian government prioritises the spending component of fiscal policy, with adjustments in the level and structure of public expenditures.

Source: Economic Research-Ekonomska Istraživanja

DOI: 10.1080/1331677x.2016.1197549

Authors: Aviral Kumar Tiwari, Mihai Mutascu

Institutions: ICFAI Business School, Université d'Orléans, West University of Timişoara, Laboratoire d’Économie d’Orléans

Language: English

Topic: Fiscal Policies and Political Economy

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $944

OpenAlex ID: W2469104609

FWCI: 3.849

Cites: 50

Cited by: 14

Related to: 10