January 2010

Budget balance through revenue or spending adjustments? An econometric analysis of the Ivorian budgetary process, 1960 - 2005

  This paper uses annual data for the period of 1960 - 2005 to investigate the causal relationship between government revenues and spending in Côte d’Ivoire. The empirical findings reveal a positive long-run unidirectional causality running from revenues to expenditures. This implies that achieving fiscal consolidation should focus more on reducing government spending rather than raising...

Author(s): Yaya Keho

January 2009

Wagner’s law in Pakistan: Another look

  We used traditional as well as time series econometrics techniques to reinvestigate the application of the Wagner’s hypothesis to Pakistan (1960 -2007). Fiscal deficit and population growth were added to the functional form of the law.Wagner’s hypothesis does not hold for aggregate public spending and income for three periods (1961 - 2007, 1973 - 1990, 1991 - 2007). WL holds for the period 1981 -...

Author(s): Mohammad Afzal and Qaisar Abbas