We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The Tax-smoothing Hypothesis: Evidence from Sweden, 1952–1999.
- Authors
Adler, Johan
- Abstract
This paper tests Barro's (1979) tax-smoothing hypothesis using Swedish central government data for the period 1952–1999. According to the tax-smoothing hypothesis, the government sets the budget surplus equal to expected changes in government expenditure. When expenditure is expected to increase, the government runs a budget surplus, and when expenditure is expected to fall, the government runs a budget deficit. The empirical evidence suggests that the model provides a useful benchmark and that tax-smoothing behavior can explain about 60 percent of the variability in the Swedish central government budget surplus.
- Subjects
SWEDEN; TAXATION; PUBLIC spending; GOVERNMENT spending policy; BUDGET surpluses; BUDGET deficits; DEFICIT financing
- Publication
Scandinavian Journal of Economics, 2006, Vol 108, Issue 1, p81
- ISSN
0347-0520
- Publication type
Article
- DOI
10.1111/j.1467-9442.2006.00442.x