Short and Long-run Budgetary Relationships

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dc.contributor.author Ben Sita, Bernard en_US
dc.contributor.author Dah, Abdallah en_US
dc.contributor.author Abosedra, Salah en_US
dc.date.accessioned 2016-05-19T07:50:40Z en_US
dc.date.available 2016-05-19T07:50:40Z en_US
dc.date.copyright 2015 en_US
dc.date.issued 2016-05-19
dc.identifier.issn 0022-037X en_US
dc.identifier.uri http://hdl.handle.net/10725/3838 en_US
dc.description.abstract We empirically estimate the short- and the long-run effects of fiscal policy on the Lebanese economy. Such estimates should be valuable in shaping the administrative reforms of the budgetary process in Lebanon where the debt-to-GDP ratio reached about 146% in 2013 (Bank Audi, 2013)0. A Vector Error Correction model is estimated to determine the long-run relationship between government spending and government revenues and their short-run dynamics. The results indicate that long-run adjustments are better managed through government revenues and expenditures, whereas short-run imbalances should be offset by changes in spending. Two adjustment mechanisms leading to long-run equilibrium are identified and their dynamics are explained. The first is “value-based” which stipulates that government reduces spending and increases revenues when the economy is growing. The second is “cost-based” where reduction in government expenditures is called for when interest rates increase. en_US
dc.language.iso en en_US
dc.title Short and Long-run Budgetary Relationships en_US
dc.type Article en_US
dc.description.version Published en_US
dc.title.subtitle Evidence from Lebanon en_US
dc.author.school SOB en_US
dc.author.idnumber 200603722 en_US
dc.author.idnumber 198929040 en_US
dc.author.department Department of Economics (ECON) en_US
dc.description.embargo N/A en_US
dc.relation.journal Journal of Developing Areas en_US
dc.journal.volume 49 en_US
dc.journal.issue 2 en_US
dc.article.pages 77-91 en_US
dc.keywords VEC en_US
dc.keywords Government expenditures en_US
dc.keywords Government revenues en_US
dc.keywords Lebanon en_US
dc.keywords Developing areas en_US
dc.identifier.doi http://dx.doi.org/10.1353/jda.2015.0031 en_US
dc.identifier.ctation Sita, B. B., Abosedra, S., & Dah, A. (2015). Short and long-run budgetary relationships: evidence from Lebanon. The Journal of Developing Areas, 49(2), 77-91. en_US
dc.author.email bernard.bensita@lau.edu.lb en_US
dc.author.email aadah@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url http://muse.jhu.edu/article/558485 en_US
dc.orcid.id https://orcid.org/0000-0001-9133-5508 en_US

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