01867cas a2200253 a 4500 AALejournalIMF008338 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874365 1018-5941 BD-DhAAL BD-DhAAL Wang, Qing. Testing the Relationship Between Government Spending and Revenue : Evidence From GCC Countries / Qing Wang, Ugo Fasano-Filho. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper examines the direction of causality between total government expenditure and revenue in oil-dependent GCC countries by utilizing a cointegration and error-correction modeling framework, and by calculating a variance decomposition analysis. In addition, it presents impulse responses to shed light on the dynamic relation of expenditure to a revenue shock. The results confirm expectations that government spending follows oil revenue, suggesting a pro-cyclical expenditure policy to variations in oil revenue. To make budget expenditure less driven by revenue availability, the authorities could resort to a medium-term expenditure framework, so that expenditures can be planned and insulated from volatile short-term revenue availability. Mode of access: Internet Fasano-Filho, Ugo. IMF Working Papers; Working Paper ; No. 2002/201 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/201/001.2002.issue-201-en.xml IMF e-Library