This paper applies the technique of Granger Causality to determine the relationship between total government expenditures and total tax revenue using annual revised estimates. The analysis discovers a firm unidirectional effect from expenditure to revenue suggesting the preference of controlling the spending decisions to reduce the tax revenue-expenditure deficit.

This study incorporates Zakat into a simple macroeconomic model of an Islamic economy and analyzes the role of Zakat in the national income determination. The reduced form aggregate consumption function suggests that the determinants of consumption are: Zakat expenditure, taxes, income, and asset holdings of individuals. Zakat could be used as a counter-cyclical policy through the discretionary...

increasing concern with income distribution effects rather than growth effects of government activities has prompted numerous incidence analysis of government tax and expenditure behavior, in this paper, the extent of government contributions to changes in income inequality is analyzed for the Iranian economy. Some major findings of this research is that income distribution in urban areas was m...

The study is an empirical test of the effects of different categories of government expenditure, revenue and deficits on economic growth in developing countries. It is based on panel data of annual series over the last three decades for 103 countries, which are further classified into low-income, high-income, mineral exports dependent, and foreign aid dependent groups. Our findings suggest that...

Following the present atmosphere of budgetary cuts we analyze the effects of fiscal consolidation on the composition of government expenditures by functions. Using a dynamic voter group decision model and exploiting the panel structure of the dataset – 26 OECD countries over the period 1970-1997by GMM estimation we find that fiscal adjustments protect social expenditure. Nevertheless, we find t...

The study here analyzes the association between R&D expenditure (as % of GDP) and labor productivity across leading geo-economic players. Empirical evidence seems to show, during the period of analysis, a strong positive association between public and private R&D expenditure. In addition, when R&D spending of business enterprise sector exceeds R&D spending of government sector, the labor produc...

Due to the importance of the government size impact on economic growth, the current study investigates the impact of government size on economic growth in economies of the developed and developing countries by using a panel data approach over the period 1990-2010. The results indicate that government size has positive effect on economic growth and negative effect on per capita production growth...

AIMS To examine changes in the prescribing of anti-depressants in New Zealand from 1993-1997, in terms of expenditure, the number of dispensings and days of therapy supplied. METHOD Data on subsidised dispensings of anti-depressant drugs during 1993 to 1997 were obtained from PHARMAC and analysed using SAS. RESULTS The overall size of the anti-depressant market increased considerably over t...

India is much more integrated with the world economy. Both current and capital accounts are complementing to each other. The economic slowdown that appears to have begun in the USA in September, 2008 has some negative impact on Indian economy. The most immediate and adverse effect of this global financial crisis on India is an out flow of Foreign Institutional Investment (FII) from the capital ...

in line with the unprecedented development of public sector in the 20th century, many economists have studied the efficiency of the public sector in economic growth and development. evidently, one of the important aspects of these studies is to determine the optimum size of government whose theoretical principles and approaches as well as practical methods have been argued about in public secto...