TY - BOOK ID - 84541366 TI - Testing the Relationship Between Government Spending and Revenue : Evidence From GCC Countries AU - Wang, Qing. AU - Fasano-Filho, Ugo. PY - 2002 SN - 1462319394 1452746001 1283512947 1451918941 9786613825391 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Macroeconomics KW - Public Finance KW - Taxation KW - Fiscal Policy KW - National Government Expenditures and Related Policies: General KW - Economic History: Macroeconomics KW - Growth and Fluctuations: Asia including Middle East KW - Energy: Demand and Supply KW - Prices KW - Business Taxes and Subsidies KW - Public finance & taxation KW - Expenditure KW - Fiscal stance KW - Oil prices KW - Oil, gas and mining taxes KW - Total expenditures KW - Fiscal policy KW - Taxes KW - Expenditures, Public KW - Saudi Arabia UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541366 AB - The paper examines the direction of causality between total government expenditure and revenue in oil-dependent GCC countries by utilizing a cointegration and error-correction modeling framework, and by calculating a variance decomposition analysis. In addition, it presents impulse responses to shed light on the dynamic relation of expenditure to a revenue shock. The results confirm expectations that government spending follows oil revenue, suggesting a pro-cyclical expenditure policy to variations in oil revenue. To make budget expenditure less driven by revenue availability, the authorities could resort to a medium-term expenditure framework, so that expenditures can be planned and insulated from volatile short-term revenue availability. ER -