چکیده:
This paper examines the idea that the rate of inflation
government expenditures fuster
than government revenues. It concludes that while
government expenditures rise concurrently with inflation, real
government revenues tend to {all based on collection lags.
Empirical results using time scrics data for [ran support our
expectations in which the longer is the delay in government
domestic revenues, the higher will be the inflation. Tn
addition, the fiscal deficit should increase money supply,
resulting in more inflation. The implication of the study
conducted here is that a passive fiscal policy based upon
inflation is dangerous. To control inflation, budgetary
authorities should reduce substantially the government budget
deficit. Furthermore, the tax administration is apparently
responsible te give priority to reforming the 1ax revenue
Syslem.
خلاصه ماشینی:
As a result, our attempt is to focus on modelling relationships among our major macroeconomic variables, prices, government revenues, government payments, and money supply, which deal with above assumptions.
· An equation system presented by these authors indicate relationships among the general level or prices, government expenditures, government revenues and money supply.
!1 LogGDP1 + {l -i,)Log(GE/P)1 + Log P, (2) Log GR1 = ,) o0 + ,, lo1 ( Log GDPt + Log P1 ) + ( 1 - e ) Log GR1 _ 1 (3) where endogenous variables in the model are defined as: P = domestic prices, GE = nominal government expenditures, GR = nominal government revenues, M = nominal money supply, n· = expected inflation rate.
The model also includes the following exogenous variables: GDP = real gross domestic product, m = money multiplier, E = residual items including changes in foreign reserves, changes in central hank's claims on the private sector, the stock of high-powered money in the previous period, errors as a result of the difference between changes in central bank's claims and government foreign exchanges, and finally government budget deficit.
I. However, with an exception, the coefficient of the inflution rate variable is not significant in both government expenditure and revenue equations, In the estimated money supply equation, Eq.
Furthermore, with the exceptions of dummy variable in the both price and money supply equations and the coefficient of the inflation rate in the government expenditure equation, other coeficients are statistically significant at the 5 percent level.