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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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Main Author: Hong T.J.
Other Authors: 35188954800
Format: Article
Published: 2023
Subjects:
Cointegration
Error-correction model
Fiscal policy
Government spending and revenue
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id my.uniten.dspace-30668
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spelling 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
institution Universiti Tenaga Nasional
building UNITEN Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tenaga Nasional
content_source UNITEN Institutional Repository
url_provider http://dspace.uniten.edu.my/
topic Cointegration
Error-correction model
Fiscal policy
Government spending and revenue
spellingShingle 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.
author2 35188954800
author_facet 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
_version_ 1806427966952964096
score 13.222552

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