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Economic research - Ekonomska istraživanja, Vol. 29 No. 1, 2016.

Original scientific paper

https://doi.org/10.1080/1331677X.2016.1197549

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

Aviral Kumar Tiwari orcid id orcid.org/0000-0002-1822-9263
Mihai Mutascu orcid id orcid.org/0000-0003-3837-3243

Full text: english pdf 1.113 Kb

page 735-745

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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.

Keywords

Revenues; expenditures; nexus; policy implications; Romania; TA R; MTAR

Hrčak ID:

171756

URI

https://hrcak.srce.hr/171756

Publication date:

22.12.2016.

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