New York Economic Review


The Causal Relationship Between Tax Revenues and Expenditures: Evidence from New York State

Rebecca Glover, Xueming Luo and Mojtaba Seyedian

vol. 33, Fall 2002, p. 61-66


As smaller state budgets become popular among voters, a better understanding of the factors affecting budget balances becomes imperative. This paper tries to shed some light on the issue by analyzing New York State budget data. The results of a Granger-Causality test in conjunction with variance decomposition techniques show that tax revenues, as opposed to expenditures, are the leading factor in creating bigger budgets in New York.


suggested citation:

Rebecca Glover, Xueming Luo and Mojtaba Seyedian. "The Causal Relationship Between Tax Revenues and Expenditures: Evidence from New York State." New York Economic Review. vol. 33, Fall 2002, p. 61-66

BibTeX entry    download