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Title: TAX REVENUE POLICY ADJUSTMENTS: DOES ITS POLICY SHOCK STABILISES GROWTH, GOVERNMENT COMPENSATORY SPENDING, INDUCED CONSUMPTION AND INDEBTEDNESS PRESSURES ON CITIZENS
Authors: Andrew E.O Erhijakpor (PhD, FCA) and Edward O. Ediagborume
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Andrew E.O Erhijakpor (PhD, FCA)1 and Edward O. Ediagborume2 1. Department of Banking and Finance, Faculty of Management Sciences, Delta State University, Abraka, Nigeria 2. PG Student, Department of Accounting, Faculty of Management Sciences, Delta State University, Abraka, Nigeria
MLA 8 Erhijakpor, Andrew E.O, and Edward O. Ediagborume. "TAX REVENUE POLICY ADJUSTMENTS: DOES ITS POLICY SHOCK STABILISES GROWTH, GOVERNMENT COMPENSATORY SPENDING, INDUCED CONSUMPTION AND INDEBTEDNESS PRESSURES ON CITIZENS." Int. j. of Social Science and Economic Research, vol. 7, no. 3, Mar. 2022, pp. 528-553, doi.org/10.46609/IJSSER.2022.v07i03.005. Accessed Mar. 2022. APA 6 Erhijakpor, A., & Ediagborume, E. (2022, March). TAX REVENUE POLICY ADJUSTMENTS: DOES ITS POLICY SHOCK STABILISES GROWTH, GOVERNMENT COMPENSATORY SPENDING, INDUCED CONSUMPTION AND INDEBTEDNESS PRESSURES ON CITIZENS. Int. j. of Social Science and Economic Research, 7(3), 528-553. Retrieved from doi.org/10.46609/IJSSER.2022.v07i03.005 Chicago Erhijakpor, Andrew E.O, and Edward O. Ediagborume. "TAX REVENUE POLICY ADJUSTMENTS: DOES ITS POLICY SHOCK STABILISES GROWTH, GOVERNMENT COMPENSATORY SPENDING, INDUCED CONSUMPTION AND INDEBTEDNESS PRESSURES ON CITIZENS." Int. j. of Social Science and Economic Research 7, no. 3 (March 2022), 528-553. Accessed March, 2022. doi.org/10.46609/IJSSER.2022.v07i03.005.
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ABSTRACT: This study analyse the effect of fiscal policy shocks due to tax revenue adjustments, kept track of the dynamic links of these shock possibilities on the macroeconomic measures specified in the vector autoregression (VAR) model. Their responds to these permanent shock innovations that were exhibited due to pressure from tax revenue shifts were reconciled to understand their feedback effects. This process permits the test for the hypothesis of diagonal covariance and the symmetric covariance processes. It explore the degree of own variance asymmetry exhibited by the variables in the model. This approach was administered to ease the analysis of the related concepts of exogeneity, and temporal superiority associated with the Granger-causality analysis. These variables exhibit basic levels of statistical significance. The impulse response estimates indicates that the shock response of tax revenue adjustments to innovations in tax revenue policy shows a continuous increasing diverse expansionary policy path that is declining beyond anticipated government stabilisation policy limits. The shock response of tax revenue shift to innovations in economic growth expressed moderate consistent expansionary policy path that increased the disclosed policy shocks at a slow consistent pace. Relatively government compensatory spending follow a moderate expansionary path that shrined slightly into a contractionary policy path as observed. Also, indebtedness pressure on citizens indicates a stable contractionary policy path, further innovative expansionary policy feedback effect mirrored fractional policy uncertainties with tax revenue distortive effects on indebtedness pressure. Thus, government induced consumption due to economic growth exhibited favourable contractionary policies, which gradually became expansionary over the observation with implications for lopsided, unsteady and inconsistent feedback, which emits pressure that pushed the observed innovations out of balance. Other results have implications for domestic private investment productivity, private citizens’ income and consumption power, and political and macroeconomic stability.

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