@article{Debasis Patnaik_Venkat Yaji_2018, title={Assessing the Effects of Tax Elasticity on Government Spending}, volume={8}, url={https://www.ijemr.net/ojs/index.php/ojs/article/view/203}, DOI={10.31033/ijemr.8.5.8}, abstractNote={<p>This paper assesses the effects of Tax elasticity on Government Spending state wise from 2001-2010 for five major states in terms of population. OLS Regression model is used where the relationships are assumed to be linear. The variables used in the regression model are: G<sub>t</sub> = the government spending at the state level, the dependent variable Y<sub>t</sub> = the Gross Domestic Product (GDP) of the state C<sub>t</sub> = the central assistance to the state , E<sub>t</sub> = the elasticity variable, The subscript âtâ refers to the corresponding year of analysis and b<sub>0, </sub>b<sub>1,</sub> b<sub>2,</sub> b<sub>3,</sub> b<sub>4,</sub> b<sub>5 </sub>are regression coefficients. In most of the cases, elasticity bore a positive and significant relation to the level of government spending except in the case of Bihar, where the coefficient was negative and insignificant.</p>}, number={5}, journal={International Journal of Engineering and Management Research}, author={Debasis Patnaik and Venkat Yaji}, year={2018}, month={Oct.}, pages={70-76} }