EXPLORING THE CAUSAL RELATIONSHIP BETWEEN REVENUE AND EXPENDITURE: AN EMPIRICAL ANALYSIS OF STATES

Authors

Rahul Tripathi Research Scholar Department of Economics Banaras Hindu University (Bhu) Varanasi, Uttar Pradesh, India

Keywords:

Causal relationship, expenditure, empirical analysis

Abstract

This empirical research delves into the exploration of the causal relationship between revenue and expenditure, focusing on a comprehensive analysis of states. Understanding the intricate dynamics between revenue generation and expenditure allocation is crucial for effective fiscal management and economic sustainability. Through rigorous empirical analysis, this study investigates the causal links between revenue and expenditure within the context of states. By employing advanced statistical techniques, including time series analysis and Granger causality tests, the research reveals the temporal and directional dependencies between revenue and expenditure. The findings contribute to a nuanced comprehension of fiscal policies and their implications for states' financial stability and resource allocation strategies.

References

Baghestani, H. and R. McNown (1994),“Do Revenues or Expenditures Respond to Budget Disequilibria?” Southern Economic Journal, Volume 61, pp. 311–322.

Barro, R. J (1974), “Are Government Bonds Net Wealth?” Journal of Political Economy,Volume 82, pp. 1095–1118.

Barro, R. J (1990), “Government Spending in a Simple Model of Endogenous Growth”,Journal of Political Economy, Volume 98,pp.103-126

Bhat, K. S., V. Nirmala and B. Kamaiah (1993), "Causality between TaxRevenue and Expenditure of Indian States", The Indian EconomicJournal, 40, 109-17.

Blackley, P. R (1986), “Causality Between Revenues and Expenditures and the Size ofthe Federal Budget”, Public Finance Quarterly, Volume 14, pp.139–56.

Bohn, H (1991), “Budget balance through revenue or spending adjustments: Somehistorical evidence for the United States”, Journal of Monetary Economics,Volume 27, pp.333–59.

Buchanan, J.M and Wagner. R.W (1977), "Democracy in Deficit", New York: AcademicPress.

Buchanan, J.M and Wagner. R.W (1978), “Dialogues concerning fiscal religion”,Journalof Monetary Economics, Volume 4, pp.627–36.

Darrat, A.F (1998), “Tax and Spend, or Spend and Tax? An Inquiry into the TurkishBudgetary Process”, Southern Economic Journal, Volume 64, Issue 4, pp. 840–956.

Dhanasekaran, K (2001), “Government Tax Revenue, Expenditure andCausality: The Experience of India”, Indian Economic Review, 2,359-379.

Downloads

Published

2017-02-05

How to Cite

Rahul Tripathi. (2017). EXPLORING THE CAUSAL RELATIONSHIP BETWEEN REVENUE AND EXPENDITURE: AN EMPIRICAL ANALYSIS OF STATES. Ethiopian International Journal of Multidisciplinary Research, 4(02), 01–04. Retrieved from https://eijmr.org/index.php/eijmr/article/view/76