@article{Bayarsaikhan_2020, title={The Effect of Copper Price Shock on the Relationship between Government Revenue and Expenditure: Testing the Fiscal Stability Law of Mongolia}, volume={59}, url={https://www.mongoliajol.info/index.php/PMAS/article/view/1294}, DOI={10.5564/pmas.v59i4.1294}, abstractNote={<p>This study empirically investigates the relationship between government revenue, government expenditure and the copper price in Mongolia, a resource abundant country. Using quarterly data of government revenue, expenditure and international copper price from 2000 to 2015, the results of auto regression (VAR) show that there is a strong causality from revenue to expenditure, while increase in expenditure, most likely, is not accompanied by rises in revenue. This result is consistent with the revenue-spent hypothesis. Moreover, the result also indicates that copper price shock increases revenue, but decreases expenditure. This finding supports the assumption that the Mongolian government follows its Fiscal Stability Law, a strategy that intends to maintain the stability and sustainability of the government budget.</p>}, number={4}, journal={Proceedings of the Mongolian Academy of Sciences}, author={Bayarsaikhan, Ariungerel}, year={2020}, month={Mar.}, pages={27–33} }