| Summary: | 碩士 === 逢甲大學 === 財稅所 === 97 === The purpose of this paper is to examine the relationship between fiscal deficits and government expenditures in Taiwan and ASEAN+6 (Singapore, Malaysia, Thailand, Vietnam, Indonesia, and Philippines). Using panel data that including the vertical-section and cross-section data to test the validity of the Buchanan-Wagner hypothesis for the period 1990－2007.
Variables in the empirical model include total government expenditures, the ratio of total government tax revenues over total government expenditures, income and the voter population. To test this hypothesis, the first step is panel unit root test, and we find all variables are unit series. The second, a panel cointegration test and a panel error correction model are employed to infer the casual relationship, and it shows there is a long-run equilibrium relationship among total government expenditures, the ratio of total government tax revenues over total government expenditures income and the voter population. The empirical result shows that fiscal deficits have non-significant positive relationship between government expenditures in Taiwan and ASEAN+6, therefore there is insufficient evidence to support Buchanan-Wagner hypothesis.
|
|---|
