Abstract
The theoretical literature on the revenue-spending nexus suggests four possible relationships. They are tax-and-spend, negative tax-and-spend, spend-and-tax, and fiscal synchronization. Despite their homogenous research design, the empirical studies of Canada have provided mixed and inconclusive results. This study re-examines the topic from a time-frequency perspective. Specifically, it applies continuous wavelet analysis to the period 1867–2017 to delineate a complete picture of the revenue-spending nexus in Canada. Although results show the existence of all relationships suggested by theory at different time-frequency combinations, the spend-and-tax pattern is the most striking one and dominates the nexus in the long run. Theoretical, methodological, and policy-wise implications of this study are discussed at the end.
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Articles in the same Issue
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Articles in the same Issue
- Frontmatter
- Articles
- Tweedie Regression Analysis of Determinants of Birth Weight in Navrongo
- The Chinese Debt Trap Diplomacy Narrative: An Empirical Analysis
- A Social Constructionist Approach to Institutional Change: The Case of the Romanian Competition Council
- Conscription Reloaded? The Debate About Compulsory Service in Germany in 2022 and the Peoples’ Attitudes Towards It
- Always a Bridesmaid: A Machine Learning Approach to Minor Party Identity in Multi-Party Systems
- Commentary and Responses
- The Nexus between Federal Revenue and Spending in Canada: A Time-Frequency Perspective