Tax Changes Linked to Government Expenditure Changes and the Magnitude of Fluctuations in National Income

1970 ◽  
Vol 78 (1) ◽  
pp. 60-67 ◽  
Author(s):  
David J. Smyth
Keyword(s):  
Government Expenditure ◽  
National Income ◽  
Tax Changes

A Note on Tax Changes and Fluctuations in National Income

1973 ◽  
Vol 81 (6) ◽  
pp. 1467-1470
Author(s):  
Maurice Peston
Keyword(s):  
National Income ◽  
Tax Changes

Electoral Cycles, Budget Controls and Public Expenditure

1981 ◽  
Vol 1 (1) ◽  
pp. 37-59 ◽  
Author(s):  
James Alt ◽  
K. Alec Chrystal
Keyword(s):  
United States Of America ◽  
Public Expenditure ◽  
Government Expenditure ◽  
National Income ◽  
The United States ◽  
Stabilization Policy ◽  
Policy Models ◽  
Income Model ◽  
Economic Stabilization ◽  
Rates Of Growth

ABSTRACTThis paper presents the results of tests of a number of models of public expenditure growth which have achieved wide currency. The main types of models examined are a permanent income model, electoral cycle models, and stabilization policy models. The models are tested with data from Britain and the United States of America and the results are compared with evidence from other countries. The paper concludes that government expenditure grows in proportion to national income because politicians find it convenient to plan that way; electoral-cyclical factors are relatively unimportant in determining public expenditure; there appears to be a limited role for public expenditure in economic stabilization policy; in a comparative context institutions of expenditure control are important in determining relative rates of growth of public sector consumption expenditure.

scholarly journals The Impact of Tourism Development on Economic Development: The Case of Zanzibar

2021 ◽  
pp. 41-50
Author(s):  
Hafidh Ali Hafidh ◽  
Zulekha Ayoub Rashid
Keyword(s):  
Economic Development ◽  
Government Expenditure ◽  
National Income ◽  
Tourism Development ◽  
Small Island ◽  
Stable Relationship ◽  
Long Run ◽  
Study Results ◽  
The Government ◽  
The Impact

Tourism is perceived as one of the world’s fastest growing service sectors and a major source of economic development for many, if not all, developing countries. Zanzibar as a developing country and also is a small island which have small economy, its national income depend much on tourism contribution, Therefore this paper aim to examine the impact of tourisms development to the economic development of Zanzibar, using the data based on annual time series from the period 1989–2019 and also employing Vector Error Correlation Model (VECM) to arrive at conclusions from the data in the study area. The study results found a long-run stable relationship among tourism development and economic development of Zanzibar, there is a positive and significant impact that exists between GDP and international tourism arrivals, inflation and government expenditure respectively while only inflation results show positive but insignificant impact. In order to increase the economic development in Zanzibar through the tourism sector, there is a need for the government and other stakeholders of tourism to put much consideration on this sector so as to improve overall development of Zanzibar economy.

scholarly journals Determinants of Indonesia’s National Income: An Auto-Regressive Distributed Lag Analysis

2020 ◽  
Vol 9 (2) ◽  
pp. 207-218
Author(s):  
Prihartini Budi Astuti ◽  
Nur Khasanah
Keyword(s):  
Economic Growth ◽  
Aggregate Demand ◽  
Government Expenditure ◽  
National Income ◽  
The United States ◽  
Jel Classification ◽  
Distributed Lag ◽  
Long Run ◽  
Auto Regressive ◽  
The Government

At the end of 2019, most countries experienced an economic slowdown due to a trade war between the United States and China. According to macroeconomic theory, aggregate demand is one of the factors that influence economic growth. This study aims to add the debate and fill the gap by studying the relationship between aggregate demand and economic growth in the case of Indonesia. Using an Auto-Regressive Distributed Lag analysis, the results indicate that in the long-run, household consumption and investment had a positive effect on Indonesia's national income in 2010-2019. It means that the government must continue to make policies to maintain the purchasing power of Indonesian consumers, so that public consumption remains high, and maintaining the investment climate to be more conducive. On the other hand, government expenditure and net exports variables have no impact on Indonesia's national income in 2010-2019.JEL Classification: E01, E12, O47How to Cite:Astuti, P. B., & Khasanah, N. (2020). Determinants of Indonesia’s National Income: An Auto-Regressive Distributed Lag Analysis. Signifikan: Jurnal Ilmu Ekonomi, 9(2), 207-218. https://doi.org/10.15408/sjie.v9i2.14469.

scholarly journals Evidence For Non-Linear Causality Between Public Spending And Income In The European Union Countries

2011 ◽  
Vol 25 (1) ◽  
Author(s):  
Stella Karagianni ◽  
Maria Pempetzoglou
Keyword(s):  
European Union ◽  
Government Expenditure ◽  
National Income ◽  
The European Union ◽  
Font Size ◽  
Normal Text ◽  
European Union Countries ◽  
Non Linear ◽  
Functional Forms ◽  
Post War

<p class="MsoSubtitle" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: Times New Roman;"><span style="color: black; font-size: 10pt; font-weight: normal; text-decoration: none; text-underline: none;">This paper deploys the non-linear Granger causality methods in order to determine the causal relationship between national income and government expenditure in the European Union countries over the post-war time period. For this purpose, six alternative functional forms of Wagner&rsquo;s law have been adopted. The empirical results </span><span style="font-size: 10pt; font-weight: normal; text-decoration: none; text-underline: none;">indicate support for non-linear causality between income and government expenditure and they may prove useful theoretical and empirical research for the regulators and the policy makers. </span></span></p>

The Problem of Government Finance in British India: Taxation, Borrowing and the Allocation of Resources in the Inter-war Period

1985 ◽  
Vol 19 (3) ◽  
pp. 521-548 ◽  
Author(s):  
Neil Charlesworth
Keyword(s):  
Twentieth Century ◽  
Social Services ◽  
Economic History ◽  
Government Expenditure ◽  
National Income ◽  
First World War ◽  
Financial Policy ◽  
World War ◽  
The First World War ◽  
First World

It isan axiom of India's economic history that government financial resources during the last half-century of the British period were inadequate. ‘The poverty of India was matched by the poverty of its government’ writes Dharma Kumar inThe Cambridge Economic Historyand she estimates that ‘except during the two wars of the twentieth century, the tax revenues amounted to a mere 5 to 7 per cent of the national income'. Raymond Goldsmith's assessment is of an even lower proportion realized by taxation and he further believes that the scanty share of government expenditure in national product declined after the first world war. In most of the historiography, this situation is seen as a notable shortcoming created by imperial rule, the inevitable product of the passivity of the ‘night-watchman state’. Reviewing financial policy in 1939, P. J. Thomas described its predominant characteristic as ‘conservatism’, marked by ‘extreme reluctance to venture on new experiments in raising revenue’, ‘the low burden of public debt’ and ‘inadequate expenditure on social services’.3 These features could have played an important role in constricting India's economic and social development, particularly in the inter-war period of the twentieth century. Financial weaknesses then may have undermined the 'new industrial policy' of the post-first world war era4 and in the 1930s superficially present a crucial contrast with Asia's other major industrializing power, Japan, where government appeared to stimulate the economy impressively by massive borrowing and expenditure.5

scholarly journals Multivariate Analysis on the Effectiveness of Monetary and Fiscal Policies in Fiji

2020 ◽  
Author(s):  
Jauhari Dahalan ◽  
T.K. Jayaraman
Keyword(s):  
Relative Effectiveness ◽  
Government Expenditure ◽  
National Income ◽  
Error Variance ◽  
Fiscal Policies ◽  
Vector Autoregressive Model ◽  
Monetary Policies ◽  
Vector Autoregressive ◽  
Cointegrating Vector ◽  
The One

By utilising a Cointegrating Vector Autoregressive Model, this paper assesses the relative effectiveness the fiscal and monetary policies on growth. It is observed that government expenditure has the strongest effect on Fiji’s national income which significantly explains Fiji’s GDP error variance even after a three year period with regard to the effect of shocks, we observed that the national income impulse respons to the one standard error shock among all macroeconomic variables, i.e. government expenditure and foreign assets, which is not permanent but transitory.  

The Economics of an African University

1966 ◽  
Vol 4 (4) ◽  
pp. 435-455 ◽  
Author(s):  
E. M. Godfrey
Keyword(s):  
Government Expenditure ◽  
National Income ◽  
British Government ◽  
African Countries ◽  
Total Spending ◽  
Educational Expenditure

THE case for taking a careful look at educational expenditure in African countries rests simply on its size, in relation to government expenditure as a whole and to national income. As Table I (overleaf) shows, most African governments devote a considerably higher proportion of their total spending to education than does, for instance, the British Government.

scholarly journals Impact of Public Policy Shocks on Components of Aggregate Demand in Pakistan

2020 ◽  
pp. 95-111
Author(s):  
Saima Shafique ◽  
Muhammad Mansoor Ali ◽  
Saif Mujahid Shah
Keyword(s):  
Fiscal Policy ◽  
Aggregate Demand ◽  
Government Expenditure ◽  
Tax Revenue ◽  
Impulse Response Functions ◽  
Tax Rates ◽  
Policy Shocks ◽  
The Government ◽  
Tax Changes ◽  
The Impact

Fiscal policy has strong distributional effects as the alteration in tax rates and spending decisions cause different sectors of the economy to respond differently. Correct information about this reaction and understanding transmission mechanism is essential to create policies that can have development and growth effects. The study analyzed the impact of fiscal policy on disaggregated data of Pakistan in a SVAR setting. The analysis reveals an uneven distribution of fiscal policy shocks across different sectors of Pakistan with varying degrees of responsiveness. There is heterogeneity in the response of different sectors as well as components of aggregate demand in Pakistan to fiscal policy shocks as revealed in impulse response functions. It is results reveal that tax revenue shock generated a higher response in different sectors than the government expenditure shock conforming to the theoretical expectation that tax changes impact the agents faster than the expenditure decisions. This regressive behavior in Pakistan seems mostly due to higher spending on debt servicing and maintaining a large public sector with huge spending on pensions and social security networks.

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