Deleted Journal, Год журнала: 2024, Номер 2024(4), С. 618 - 629

Опубликована: Дек. 30, 2024

This study investigates the evolving causal relationship between government revenue and expenditure in Algeria from 1980 to 2022, a period marked by significant fiscal policy shifts. Unlike previous research assuming static relationship, we employ bootstrap rolling window approach spectral Granger-causality test capture time-varying causality. These methods illuminate dynamic nature of interactions Algeria's changing economic landscape. Our findings robustly support tax-spend hypothesis over extended periods, revealing that revenues significantly influence patterns. Notably, 1995 2003, observe positive effect on spending, coinciding with contraction rationalization efforts. Conversely, despite declining tax 2005 2008, an expansionary increased indicative financial illusion. Interestingly, also find intermittent short-term evidence supporting both spend-tax synchronization hypotheses, highlighting complex multifaceted dynamics. The tests further corroborate these findings, particularly medium term. contributes literature dynamics resource-dependent economies offers valuable insights for policymakers navigating results underscore importance adaptive strategies account revenue-expenditure relationships, face oil price volatility diversification

Язык: Английский