An illustration of the causality relation between government spending and revenue using wavelet analysis on Finnish data
Quarterly data for the period 1960: 1 to 1997: 2, conventional tests, a bootstrap simulation approach and a multivariate Rao's F-test have been used to investigate if the causality between government spending and revenue in Finland was changed at the beginning of 1990 due to future plans to create the European Monetary Union (EMU). The results indicate that during the period before 1990, the gover