The Tax-Spend Debate and Budgetary Policy in Austria

Bröthaler, Johann; Getzner, Michael

doi:10.1007/s11294-015-9532-1

Cited by 10 publications

(10 citation statements)

References 20 publications

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“…Many studies have been done in the past to investigate the relationship between these two fiscal rudiments and some researchers found that spend and tax hypothesis is valid (Bröthaler & Getzner, 2015;Lusinyan & Thornton, 2012;Richter & Dimitrios, 2013). On the other hand, many studies demonstrate the exact opposite results and provide the evidence of tax and spend hypothesis (Farzanegan, 2011;Maitra, 2011).…”

Section: Introductionmentioning

confidence: 99%

Asymmetric Relationship Between Government Revenues and Expenditures in a Developing Economy: Evidence from a Non-linear Model

Raza

Hassan

Sharif

2019

Global Business Review

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Understanding the revenue–expenditure nexus is the core essence of this research in the Pakistani context. This research examines the non-linear relationship between government revenues and government expenditures during 1972–2014. The recently developed non-linear co-integration technique has been used along with the symmetry test. The result shows that the revenues and expenditures have co-integration and provide the evidence in favour of fiscal synchronization hypothesis in the budgetary process. Moreover, the finding also reveals that the relationship between these two fiscal elements is asymmetric and negative changes in revenues and expenditures have a greater impact than the positive ones. Furthermore, another important aspect that was revealed during the study was that the negative shocks in the revenues will lead towards the drastically large increase in the expenditure.

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Section: Introductionmentioning

confidence: 99%

Asymmetric Relationship Between Government Revenues and Expenditures in a Developing Economy: Evidence from a Non-linear Model

Raza

Hassan

Sharif

2019

Global Business Review

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“…Moreover, taking government spending as exogenous is a standard assumption in the optimal fiscal policy literature. Some studies lend evidence for the spend-tax hypothesis, among them are Ram (1988) for the US state and local governments, Hondroyiannis and Papapetrou (1996) for Greece, Saunoris and Payne (2010) for the UK and Bröthaler and Getzner (2015) for Austria.…”

Section: Literature Reviewmentioning

confidence: 99%

The Government Spending-Revenue Nexus in CEE Countries: Some Evidence for Asymmetric Effects

Karakaş¹,

Turan²

2019

Prague Economic Papers

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This paper investigates the government spending-revenue nexus for Croatia, Czechia, Hungary, Poland, Romania and Slovenia by using quarterly data and a nonlinear autoregressive distributed lag (NARDL) approach to cointegration. Our empirical findings support the fiscal synchronization for Slovenia, spend-tax for Czechia, tax-spend for Croatia and Hungary, and institutional separation or fiscal neutrality for Romania and Poland in the long run. Moreover, we find an asymmetric effect for Croatia, Czechia, Hungary and Poland in the long run and for all the countries in the short run. Therefore, our results clearly highlight the importance of asymmetric effects in government spending-revenue nexus. Our findings have some policy implications for these countries, such as providing a better coordination of government spending and revenue decisions and paying attention to the asymmetries.

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“…In 2015, public debt in Austria stood at approximately 85% relative to GDP, and it was predicted that a sizable fiscal consolidation (of approximately 26.5 billion) would have been needed to achieve a balanced budget by 2016 (Broethaler and Getzner 2015). To improve transparency in forward-looking fiscal planning, Austria has recently mandated triannual projections of the longer-term fiscal outlook up-to the next 30 years under §15 Abs.…”

Section: Fiscal Sustainability and Concerns Regarding Extreme Climatimentioning

confidence: 99%

Mainstreaming of climate extreme risk into fiscal and budgetary planning: application of stochastic debt and disaster fund analysis in Austria

2018

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While ageing-related costs are perceived as the major drivers of fiscal pressure in the EU, concerns over climate-related public expenditures have received comparatively little attention in securing the EU's long-term fiscal sustainability. Using the Shared Socioeconomic Pathways (SSPs) scenarios as bridging concept for linking the assessment of public cost of demography-and climate-related expenditures, this study proposes a climate risk mainstreaming methodology. We apply a stochastic debt model and assess the potential flood risk in Austria to the public debt and the national disaster fund. Our results indicate that public debt under no fiscal consolidation is estimated to increase from the current level of 84.5% relative to GDP in 2015 to 92.1% in 2030, with macroeconomic variability adding further risk to the country's baseline public debt trajectory. The study finds that the estimated public contingent liability due to expected flood risk is small relative to the size of economy. The existing earmarked disaster risk reduction (DRR) funding will likely reduce the risk of frequent-and-low impact floods, yet the current budgetary arrangement may be insufficient to deal with rising risk of extreme floods in the future. This prompts the need for further discussions regarding potential reforms of the disaster fund. As many EU member states are in the early stages of designing climate change policy strategies, the proposed method can support the mainstreaming of climate-related concerns into longerterm fiscal and budgetary planning.

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The Tax-Spend Debate and Budgetary Policy in Austria

Cited by 10 publications

References 20 publications

Asymmetric Relationship Between Government Revenues and Expenditures in a Developing Economy: Evidence from a Non-linear Model

Asymmetric Relationship Between Government Revenues and Expenditures in a Developing Economy: Evidence from a Non-linear Model

The Government Spending-Revenue Nexus in CEE Countries: Some Evidence for Asymmetric Effects

Mainstreaming of climate extreme risk into fiscal and budgetary planning: application of stochastic debt and disaster fund analysis in Austria

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