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1
Fernandes, Costa, and Paulo Mota. "The roots of the Eurozone sovereign debt crisis: PIGS vs non-PIGS." Panoeconomicus 58, no. 5 (2011): 631–49. http://dx.doi.org/10.2298/pan1105631f.
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The main purposes of this paper are twofold: a) to determine if there are significant differences on the determinants of public expenditures and tax revenues between the so-called PIGS and the remaining Eurozone member states; b) to uncover possible explanations for the different situations in which these countries find themselves nowadays. The paper focus on the effects of the cyclical state of the economy on those fiscal variables, and on the actual adherence to the fiscal rules imposed by the Maastricht Treaty. Based on the estimated results we conclude that the anti-cyclical reaction with respect to the unemployment rate is much stronger among non-PIGS. We also find that fiscal rules have, in general, not been followed by those two groups of countries. Moreover, PIGS, in spite of their economic frailties, have tried to emulate the fiscal behavior of their more prosperous Eurozone partners instead of executing more rigorous policies.
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Bethlendi, András, and Csaba Lentner. "Subnational Fiscal Consolidation: The Hungarian Path from Crisis to Fiscal Sustainability in Light of International Experiences." Sustainability 10, no. 9 (August 21, 2018): 2978. http://dx.doi.org/10.3390/su10092978.
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The purpose of this study is to broaden the literature on the factors that contribute to the over-indebtedness of the subnational sector and the related crisis management tools based on the experience of Hungary. In addition to the phenomena known from the literature (vertical imbalance, the fiscal tightening of the central government, the weakness of central control and transparency, and local government-owned companies), non-standard factors also contributed to the evolution of a subnational fiscal crisis in Hungary. The Hungarian municipalities had, in practice, built up a carry trade position for speculative purposes, mostly from Swiss Franc funding. The other relevant observation based on experience is that, when significant amounts of central development funds fail to form a carefully considered development policy, over the long term they could undermine local fiscal stability. In addition to extraordinary fiscal transfer and full assignment of debts, the Hungarian subnational fiscal consolidation also involved a novel technique: the obligations were transferred to the state through the assumption of duties. In Hungary, in line with international experiences, central financial assistance was accompanied by increased fiscal control and by a tightening of the requirements for budgetary transparency and data reporting. Central approval for the assumption of new debts became an important element of fiscal sustainability. In addition to the above, this study argues that in political, social, and legal terms, credible no-bailout regimes do not offer an optimum solution for the subnational sector.
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Folloni, André, and Renata Brindaroli Zelinski. "ENVIRONMENTALLY ORIENTED TAX LAW AND THE BRAZILIAN TAX SPECIES." Veredas do Direito: Direito Ambiental e Desenvolvimento Sustentável 13, no. 25 (May 10, 2016): 93–109. http://dx.doi.org/10.18623/rvd.v13i25.571.
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The theme of this paper is environmental taxation in Brazil and, more specifically, the function of tax in regard to environmental protection – taxation on fiscal and non-fiscal purposes –, as well as the possibilities and limits of the environmental use of tax species referred to in the Brazilian Constitution. The objectives are, on the one hand, to demonstrate that taxes can be created with an environmental orientation, and, on the other hand, to expose doctrinal divergences and convergences concerning the modalities of environmental taxation regarding its use in the different kinds of Brazilian tax, especially tax and contribution to intervene in the economic domain. The article uses bibliographic and legislation research as a method to show the reader the existence of agreements and disagreements among some of the authors who approach the subject. It concludes that, except for the divergence related to tax, the doctrine allows for the use of the several Brazilian tax species to contribute to environmental preservation.
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Prawesti, Puspita Ayuningtyas, and Bambang Supriyono. "Infrastructural Development and Poverty Alleviation in Indonesia (Municipal Panel Data 2002 – 2013)." GATR Journal of Business and Economics Review 2, no. 4 (December 7, 2017): 51–62. http://dx.doi.org/10.35609/jber.2017.2.4(8).
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Objective - This study attempts to provide comprehensive findings on the impact of several kinds of infrastructural developments and government budgets on specific purposes, as well as agricultural and non-agricultural productions, on poverty alleviation in Indonesia between 2002-2013. Methodology/Technique - This study uses macroeconomic data at a municipal level to provide more precise findings when comparing provincial and national level data. The study uses an adaptation of the theory of international development. Findings - This research shows that electricity and sanitation are more effective at eradicating poverty than water infrastructure. In addition, household access to infrastructure is more effective in combatting poverty than the government budget for infrastructure development. The study also performs correlation matrices, dividing the data into the western and eastern parts of Indonesia, to provide more robust findings. Agricultural production is more effective in the western part of Indonesia, yet non-agricultural production is more relevant towards poverty reduction in the eastern part of Indonesia. Novelty - This study yields some empirical results and conclusions for economic development in Indonesia, finding that the key problem lies in the effectiveness of budget arrangement within the framework of fiscal decentralization. Type of Paper: Empirical. Keywords: Infrastructure Development; Fiscal Decentralization; Government Expenditure; Poverty Rate; Poverty Reduction. JEL Classification: H54, P30, P36.
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Carlson, Geoffrey. "Argentina – Measures Relating to Trade in Goods and Services (Argentina–Financial Services), DS453." World Trade Review 15, no. 4 (September 19, 2016): 706–8. http://dx.doi.org/10.1017/s1474745616000343.
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This dispute concerned eight financial, taxation, foreign exchange, and registration measures imposed by Argentina, mostly on services and service suppliers from countries that do not exchange information with Argentina for the purposes of fiscal transparency (non-cooperative countries). In particular, these measures concerned: withholding tax on payments of interest or remuneration (measure 1); presumption of unjustified increase in wealth (measure 2); transaction valuation based on transfer prices (measure 3); payment received rule for the allocation of expenditure (measure 4); requirements relating to reinsurance services (measure 5); requirements for access to the Argentine capital market (measure 6); requirements for the registration of branches (measure 7); and foreign exchange authorization requirement (measure 8).
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Ping, Yew Chiew. "Explaining Land Use Change in a Guangdong County: The Supply Side of the Story." China Quarterly 207 (September 2011): 626–48. http://dx.doi.org/10.1017/s0305741011000683.
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AbstractThe conversion of land to non-agricultural use in China has often been attributed to the demand for land arising from urbanization, that is, a growing urban population and the shift from agricultural to industrial activity. With a focus on Sihui 四会, a county in Guangdong, this study explains land use conversion from an alternative perspective: by looking at the supply of agricultural land for conversion and what determines this supply. It gives precedence to the role of the central actors in the process – local officials – and suggests that the extent to which agricultural land is converted for non-agricultural purposes is determined by an array of structural and agential factors, including the fiscal and land resources at the disposal of local officials, the incentive structure and macro-processes which influence their decision.
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Băbălau, Anişoara, and Adriana Ionescu. "Rules of Taxing Property Buildings." Applied Mechanics and Materials 880 (March 2018): 377–82. http://dx.doi.org/10.4028/www.scientific.net/amm.880.377.
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An Integral Part of the Economic and Financial Mechanism, Taxation Means, on the One Hand, the Collection of Resources to the State Budget, but Also a Legal Relationship between a Debtor and a Creditor, Including their Correlation Rights and Obligations. the Determinants of Budgetary Revenues Refer to the Subjects of Taxation, the Object of Taxation, the Unit of Taxation, the Tax Rate, the Rights and Obligations of the Debtors, their Liability, as well as the Payment Terms. Building Tax is an Annual Tax due to the Local Budget of the Administrative-Territorial Units in which the Building is Located by its Owners. Therefore, Subjects of Taxation are those who Own a Building Located on the Territory of Romania, with Certain Exceptions Regulated by the Fiscal Code. for Residential Buildings and Annex Buildings owned by Individuals, the Building Tax is Calculated by Applying a Rate between 0.08% and 0.2% on the Taxable Value of the Building. for Non-Residential Buildings owned by Individuals, the Tax is Calculated by Applying a Rate between 0.2% and 1.3% on the Taxable Amount of the Building. for Mixed-Purpose Buildings Owned by Individuals, the Tax is Calculated by Adding Together the Tax Calculated for the Area Used for Residential Purposes with the Tax Determined for the Area Used for Non-Residential Purposes. for Residential Buildings Owned or Held by Legal Entities, the Tax or the Building Tax is Calculated by Applying a Rate between 0.08% and 0.2% on the Taxable Value of the Buildings; and for Non-Residential Buildings the Tax or Tax on Buildings is Calculated by Applying a Rate between 0.2% and 1.3% Inclusive of the Taxable Value of the Building.
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Jiao, Changquan. "From the tax-sharing system to the program system: Institutional evolution and organizational mechanism." Chinese Journal of Sociology 7, no. 2 (April 2021): 280–312. http://dx.doi.org/10.1177/2057150x211007962.
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Soon after implementing reforms to the tax-sharing system, the People’s Republic of China (PRC) implemented public budgeting reform, and thus formed a new kind of state governance system, the program system (PS). There are three categories of program expenditures available to local governments: “earmarked grants” from higher-level authorities; “non-grant program funds” from higher-level authorities; and program funds from same-level government departments. The convergence and reorganization of these three categories of program expenditure at the local level has, to a great extent, molded the fiscal structure of grassroots government in the PRC. The PS in essence does not mean discarding or surpassing the bureaucratic state system, rather, it is the active improvement and supplementing of the bureaucratic system by the state: a continuation and development of state regime construction. The overt purpose of the PS is to “solidify” budgetary constraints, while the underlying purpose is to enhance the government’s ability to respond to society. The two purposes present some tension in practice, as the rationalized and professionalized forms of governance that result do not necessarily enhance the ability to respond to public needs; in fact the reverse is quite possible.
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MASSAWE, Hanifa T. "Regulation of Property Tax in Tanzania: Legal and Administrative Challenges." KAS African Law Study Library - Librairie Africaine d’Etudes Juridiques 7, no. 3 (2020): 424–38. http://dx.doi.org/10.5771/2363-6262-2020-3-424.
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Property tax represents one among the most feasible, conventional, steady and progressive source of revenue. Nonetheless this form of tax has not received the attention it requires for effective contribution towards revenue generation in developing countries. The situation is however different in developed countries which have made concerted efforts to tap the potentials of property tax to achieve both fiscal and non-fiscal advantages for their communities. While taking this into account the current article conceptualizes the basic principles underlying property taxation as one among the forms of direct taxation while underscoring its value to revenue generation in general perspective. Thereafter specific analysis is made towards its practical regulation in a Tanzanian standpoint in terms of specific laws and regulatory machineries in the country. The analysis revolves around the effectiveness of the existing tax laws and regulatory machineries in ensuring optimum contribution by property tax to the country’s revenue basket. On the basis of doctrinal and empirical data it is revealed that despite its potential to contribute to revenue generation, property tax still faces a number of both legal and non- legal challenges in its administration in the country. The legal challenges include poor legal definition on the concept of property, the flat rate structure on property tax, low deterrence effect of the penal sanctions. The non-legal challenges on the other hand include low registration of property owners and properties for identification purposes, irregular valuation process, low taxpayer education on property tax affecting voluntary property tax compliance and lacking resources for property tax administration by the respective regulatory machineries. As a way to remedy the situation the paper provides a number of legal and non-legal intervention measures. The intervention measures take account of the importance of taxation for developing countries Tanzania inclusive, thus recommending solutions which reasonably combine regulatory convenience with equity and effectiveness. The recommendations are an output of theoretical data, empirical findings and specific international best practices on property taxation. The recommendations focus on legal clarification of the tax base, the method and basis for valuation and provision of required resources for enforcement of relevant laws on property taxation.
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Mgoqi, Wallace. "The Work of the Legal Resources Centre in South Africa in the Area of Human Rights Promotion and Protection." Journal of African Law 36, no. 1 (1992): 1–10. http://dx.doi.org/10.1017/s0021855300009682.
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The Legal Resources Centre (LRC) is a non-profit-making law centre. Its aims are to encourage belief in the value of law as an instrument of justice and to give practical effect to this goal by providing legal and educational services in the public interest. It is controlled and funded by the Legal Resources Trust (LRT) which is a South African charitable and educational trust registered under the Fundraising Act. It is supported by development agencies, corporations, charitable foundations and concerned individuals. The trustees include judges, senior advocates and attorneys. For the fiscal year April 1990 to March 1991 the trustees of the LRT approved a budget of R8.5 million for the work of the LRC's offices.The LRC was established after nation-wide consultations on the desirability of a legal resources centre produced positive feedback from a wide range of constituencies, and it became operational at the beginning of 1979. It seeks to fulfil the following purposes:(a) To provide legal representation for litigants in any court of law, tribunal or body before whom a party may be represented by counsel or attorney.(b) To conduct a programme in legal education and conduct seminars of educational value.(c) To engage in research in legal areas including all matters relevant to the effective administration of justice.(d) To publish the results of any research undertaken by it, and any material relevant to its objects.
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Bowser, Diana M., Rajesh Jha, Manjiri Bhawalkar, and Peter Berman. "The Challenge of Additionality: The Impact of Central Grants for Primary Healthcare on State-Level Spending on Primary Healthcare in India." International Journal of Health Policy and Management 8, no. 6 (February 18, 2019): 329–36. http://dx.doi.org/10.15171/ijhpm.2019.06.
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Background: In planning for universal health coverage, many countries have been examining their fiscal decentralization policies with the goal of increasing efficiency and equity via "additionalities." The concept of "additionality," when the government of a lower administrative level increases the funding allocated to a particular issue when extra funds are present, is often used in these contexts. Although the definition of "additionality" can be used more broadly, for the purposes of this paper we focus narrowly on the additional allocation of primary healthcare expenditures. This paper explores this idea by examining the impact of central level primary healthcare expenditure, on individual state level contributions to primary healthcare expenditure within 16 Indian states between 2005 and 2013. Methods: In examining 5 main variables, we compared differences between government expenditures, contributions, and revenues for Empowered Action Group (EAG) states, and non-EAG states. EAG states are normally larger states that have weaker public health infrastructure and hence qualify for additional funding. Finally, using a model that captured the quantity of central level primary healthcare expenditure distributions to these states, we measured its impact on each state’s own contributions to primary healthcare spending. Results: Our results show that, at the state level, growth in per capita central level primary healthcare expenditure has increased by 110% from 2005-2013, while state’s own contributions to primary healthcare expenditure per capita increased by 32%. Further analyses show that a 1% change disbursement from the central level leads to a -0.132%, although not significant, change by states in their own expenditure. The effect for wealthier states is -0.151% and significant and for poorer states the effect is smaller at -0.096% and not significant. Conclusion: This analysis suggests that increases in central level primary healthcare expenditure to states have an inverse relationship with primary healthcare expenditures by the state level. Furthermore, this effect is more pronounced in wealthier Indian states. This finding has policy implications on India’s decision to increase block grants to states in place of targeted program expenditures.
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Phuc Canh, Nguyen. "The effectiveness of fiscal policy: contributions from institutions and external debts." Journal of Asian Business and Economic Studies 25, no. 1 (June 11, 2018): 50–66. http://dx.doi.org/10.1108/jabes-05-2018-0009.
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Purpose The effectiveness of fiscal policy is an interesting field in literature of macroeconomics. The purpose of this paper is to investigate the effects of fiscal policy on economic growth under contributions from the differences in institutions and external debt levels. Design/methodology/approach The authors use panel data from 2002 to 2014 from 20 emerging markets and use GMM estimators for unbalanced panel data. Findings The results show positive growth effects of fiscal policy across emerging markets in the examined periods. Notably, the improvement in institutions promotes higher crowding-in effects of fiscal policy. In addition, this paper finds interesting evidences that the external debt has non-linear effects on economic growth, whereas the heterogeneous effects of fiscal policy on economic growth as positive effects in low indebted level and negative effect in high indebted level may explain the mechanism of this non-linear relationship. Originality/value This study proposes the non-linear relationship of fiscal growth effects in emerging economies under the dynamic of debt levels.
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Olievska, Myroslava, and Arthur Romanov. "INVESTMENTS IN HUMAN CAPITAL DEVELOPMENT AND WAGES: RELATIONSHIPS AND PROBLEMS IN LOWER-MIDDLE-INCOME COUNTRIES." Baltic Journal of Economic Studies 7, no. 1 (January 22, 2021): 77–83. http://dx.doi.org/10.30525/2256-0742/2021-7-1-77-83.
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The purposes of the article are to assess the impact of financing of education and health to human capital development, to consider the relationship among wages and investment in human capital, to establish directions of improvement of the investments in human capital development in Ukraine and other lower-middle-income countries. Methodology. Methodological basis of the research is the study of the dynamics of such indicators as the Human Capital Index 2020, wages, GNI per capita, education expenditure, government expenditure, financing of health, the wages of full-time employees. To solve the problems arising from the purpose of the study, systemic method (when analyzing the relationship of the investments in human capital development and wages), statistical methods of comparisons, economic analysis (when processing statistics), historical method (in the study of the evolution of Human Capital Index, expenditures on health and education), empirical and correlation-regression analysis (in the analysis of the practice of investments in human capital development) have been used. Results. The human capital is a central driver of sustainable growth and poverty reduction. The article proves that high-income countries can better finance the development of human capital; they are the leaders of the Ukraine Index 2020, more human capital in high-income countries is associated with higher earnings for people, higher income for countries, and stronger cohesion in societies. At the same time, the article substantiates that the low level of GNI per capita (3370 USD in Ukraine) and insufficient level of education and health expenditure negatively affect formation of human capital (the 53rd place in the Human Capital Index 2020). On the basis of the study of government and non-government expenditure on education and health, it has been concluded that investments in human capital are the effective tool to increase of the wages of full-time employees. Practical implications. Today human capital gains in many countries are at risk, especially in lower-middle-income countries. Features of the current socioeconomic situation require strengthening of investments in human capital development. The main steps that are necessary to undertake for implementing changes in the investments in human capital development have been determined in the article. They are the following: optimization of state financing of human capital; creation of fiscal space; creation of regional funds for financing human capital development; creation of strategic alliances and partnerships; supporting the demand for education and health care from households. Value/originality. The relationships between investments in human capital development and wages in the lower-middle-income countries are analytically proved. The complex of actions on optimization of financing of human capital has been generalized.
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Cevik, Serhan. "Policy coordination in fiscal federalism: drawing lessons from the Dubai debt crisis." International Journal of Emerging Markets 14, no. 5 (December 2, 2019): 899–915. http://dx.doi.org/10.1108/ijoem-09-2018-0479.
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Purpose With the global financial crisis, the United Arab Emirates (UAE) experienced its own unraveling of macro-financial imbalances and thus presents an interesting case to analyze the underlying fragilities in federal governments. The purpose of this paper is to investigate the evolution of fiscal policy in the UAE at consolidated and subnational levels in the run-up and after the crisis, and provide pertinent insights about the importance of policy coordination in other federal fiscal systems – and monetary unions, as brought to light by the recent developments in Europe. Design/methodology/approach In measuring the cyclicality of fiscal balances at the consolidated and emirate level in the UAE, this paper uses the non-hydrocarbon primary budget balance, excluding interest spending and hydrocarbon revenues, investment income of the sovereign wealth fund, scaled by non-hydrocarbon GDP. The cyclically adjusted primary balance is estimated by deducting cyclical components from the actual balance. It is important to correct for cyclical changes because the budget balance tends to vary endogenously according the state of the economy – deteriorating during a bust and improving in a boom. Furthermore, since hydrocarbon revenues are dependent on the erratic behavior of hydrocarbon prices, the cyclically adjusted non-hydrocarbon primary balance is computed, using the elasticity of non-hydrocarbon revenues and primary expenditures relative to non-hydrocarbon GDP, to assess whether fiscal policy exacerbates economic fluctuations in the UAE at the aggregate and emirate levels. Findings The empirical findings show that procyclical fiscal policies prior to the crisis reinforced the financial sector cycle, exacerbated the economic upswing, and thereby contributed to the build-up of macro-financial vulnerabilities. The paper also sets out policy lessons to develop a rule-based fiscal framework that would help strengthen fiscal policy coordination between the various layers of government and ensure long-term fiscal sustainability and a more equitable intergenerational distribution of wealth. Originality/value The lack of fiscal policy coordination among subnational governments complicates macro-economic management at the federal level. Since the UAE has a pegged exchange rate regime and consequently a limited scope to use monetary policy, the burden of macro-economic stabilization falls on fiscal policy. Accordingly, this paper shows that procyclical fiscal policies prior to the crisis reinforced the “financial accelerator” effect, exacerbated the economic cycle, and thereby contributed to the build-up of economic and financial vulnerabilities in the UAE.
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El Mahmah, Assil, and Magda Kandil. "Fiscal sustainability challenges in the new normal of low oil prices." International Journal of Development Issues 18, no. 1 (April 1, 2019): 109–34. http://dx.doi.org/10.1108/ijdi-02-2018-0033.
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Purpose Given the persistence of low oil prices and the continued shrinking of government revenues, Gulf Cooperation Council (GCC) countries continue to adapt to the new normal of the oil price environment, with a focus on pressing ahead with subsidies’ reforms and measures to increase non-oil revenues, as well as accelerating debt issuance, which raise concerns about fiscal sustainability and the implications on macroeconomic stability. Design/methodology/approach The purpose of this paper is to examine the sustainability of fiscal policy in GCC by exploring governments’ reaction to rising public debt accumulation via the estimation of a fiscal reaction function to higher debt. Subsequently, the paper compares the obtained results with other similar and non-similar groups, in terms of economic structures and oil dependency, to understand how some macroeconomic factors affect differently the fiscal policy responses, in a context of oil price shocks and high price volatility. Findings The results show that the coefficient of the lagged debt stock was significant and positive, which means that GCC are increasing the pace of reforms and the fiscal primary balance as they issue more debt to ensure a sustainable fiscal policy. The evidence is consistent with the theory that higher levels of debt warrant greater fiscal effort, but at lower debt levels, countries still have the space to increase spending without jeopardizing debt sustainability as long as they remain committed to fiscal reforms to increase the primary balance. The evidence supports the notion that the region’s public finances have improved in response to recent fiscal adjustments. However, national experiences differ considerably, especially given variation in the fiscal breakeven prices against the new normal of low oil prices. Moreover, the findings reveal that various measures of economic performance, as captured by economic growth, openness and the oil price, were also found to be important factors in explaining fiscal performance. The combined effects of low oil prices and high degree of openness warrant further efforts to reform the budget to increase the primary balance while safeguarding priority spending tomobilize non-energy growth and ensure debt sustainability in GCC. Originality/value Given recent experiences and the “low for long” oil price, policy priorities and reforms are necessary in oil-dependent economies, including GCC, to ensure macroeconomic sustainability. Sustaining the momentum of non-energy growth would reduce continued dependency of GCC economies on oil revenues and fiscal spending in the medium-term, creating a bigger scope for private sector participation in economic activity and increasing the prospects of further diversification away from long dependency on oil price volatility and their adverse implications on the fiscal budget and economic cycles.
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Morselli, Alessandro. "Theoretical approaches on the possible existence of a stabilising economic policy in Europe." Journal of Economic Studies 43, no. 5 (October 10, 2016): 815–34. http://dx.doi.org/10.1108/jes-03-2015-0056.
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Purpose The purpose of this paper is to investigate whether there is room for a stabilising fiscal policy, through an analysis of the supporters of the new classical economics and the supporters of the new Keynesian economics. There are no reliable results on the Keynesian and non-Keynesian effects of fiscal policies. As such, the policy-mix becomes a problem of theoretical approach, in the sense of a strategic game between monetary authorities and tax authorities (among them). This points to the problem of coordination between budgetary authorities as being the central debate within the Eurozone. The end-result is that without fiscal policy coordination, Eurozone member states are working on a series of non-cooperative games that are inefficient, because no player can improve its position by unilaterally changing its strategy. Design/methodology/approach The analysis starts from the experience of three countries in the 1980s, these are Denmark, Ireland and Sweden. In all three cases the adoption of restrictive budget policies has provoked a strong, rapid and enduring resizing of public debt, and growth did not weaken, moreover it accelerated. In all three cases the logic behind the policy-mix actions allowed the individualisation of the respective roles of fiscal and monetary policies. Fiscal policies were joining with fiscal instruments and reduction in public spending and furthermore monetary policy was accommodated in respect of the budget contraction. Findings First, the authors were not able to identify an analytical method that can ensure the success of a fiscal policy. Second, analysing fiscal policies within the Eurozone implies also that the authors reflect on the need for a coordination of these policies. In fact, the authors have shown how the possible coordination of economic policies in the Eurozone would result in major benefits for all member countries. Originality/value In the absence of fiscal policy coordination, member states are engaged in a series of non-cooperative games that prove inefficient, when no player is able to improve its position by unilaterally changing its fiscal policy. The coordination of national fiscal policies generates a collective advantage, bringing each state to consistently change its strategies.
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Akanbi, Olusegun Ayodele. "Sustainability of fiscal policy in an oil-rich economy: the case of Nigeria." African Journal of Economic and Management Studies 6, no. 4 (December 7, 2015): 380–401. http://dx.doi.org/10.1108/ajems-06-2013-0053.
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Purpose – The purpose of this paper is to examine the sustainability of fiscal policy in Nigeria by disaggregating the economy into oil and non-oil segments. Design/methodology/approach – Owing to the enormous influence of the oil revenue, the study distinguishes between the oil and non-oil fiscal balances. In addition, it abstracted from the endogenous macroeconomic environment, therefore, fiscal policy sustainability is investigated on the basis of the responses of the government primary balance to changes in deficits and debt levels. The models are estimated with time-series data from 1970 to 2011 using the Johansen estimation techniques. Findings – The results from the estimations performed suggest that government responds more to deficit targets than debt targets. However, this differs in the non-oil segment, as the fiscal policy actions of government do not consistently respond to either deficit or debt targets. Given this, the overall economy and the oil segment have revealed a strong fiscal sustainability over the years while fiscal policy is unsustainable in the non-oil segment. Research limitations/implications – The major limitation of this study is the unavailability of data on government expenditure resulting from oil revenue. Therefore, it would be imperative to reinvestigate the specifications adopted in this study in follow-up studies. Practical implications – The study includes implications for policy makers, especially in Nigeria and other oil-producing countries, to detect the extent to which the economy should rely on the oil revenue stream as the main source of revenue to government. The proceeds from the oil endowment have not yet trickled down to the rest of the economy where real economic activity could be carried out which would eventually lead to more tax revenue for the government. Originality/value – To assess the sustainability of fiscal policy in an oil-rich economy such as Nigeria, it is imperative to detect the influence of oil funds on both government revenue streams and expenditure decisions. This study has made this distinction.
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SalehMemon, Muhammad, and Dr Munir Ahmed Shah. "Role of Taxation in Formulation of Fiscal Plan (Case study of Pakistan)." INTERNATIONAL JOURNAL OF COMPUTERS & TECHNOLOGY 13, no. 5 (May 30, 2014): 4488–95. http://dx.doi.org/10.24297/ijct.v13i5.2538.
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Research on the role of taxation in formulation of fiscal plan was started from the idea of data collection from the ministry of finance government of Pakistan for the purpose of checking the inter correlation and degree of association between tax collection and dependent variables of fiscal plan: development expenditure, non-development expenditure, by applying Pearson 1-tailed test and linear regression for checking the above effects, moreover researchers found that tax collection is highly correlated with development as well as non-development expenditure, and tax collection is positively associated with the development and non-development expenditures.
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K. S., Nemchenko. "The fiscal policy of the state: the doctrinal level of cognition." Almanac of law: The role of legal doctrine in ensuring of human rights 11, no. 11 (August 2020): 169–75. http://dx.doi.org/10.33663/2524-017x-2020-11-30.
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The specific nature of fiscal policy is considered on doctrinal level within the article. In this research local and international approaches to determination of fiscal policy were analyzed and studied. We performed the analysis of key elements of term of fiscal policy in economic theory and finance law science. There is a part of research devoted to the definition of fiscal policy stated on doctrinal level and there was determined the correlation between fiscal policy and fiscal function of state from the perspective of legal theory. The author researched that the main approach to determination of fiscal policy in finance law science is understanding it’s as an influence of state on national economy and application different legal and economic tools in particular taxes and duties and activities of authorities in the field of implementation of such taxes and further accumulation of funds. The author proves that the major part of research within economic studies in the field of fiscal policy is not systematic and non-comprehensive. However, based on the analysis stated in the article it is possible to make a conclusion that influence on economy is core feature of fiscal policy determined by the majority of researchers in economic science. Thus, it is possible to include this feature to the definition of fiscal policy for the purpose of legal theory. At the same time, the author considers that from the perspective of legal theoretical science fiscal policy implements tasks and directions determined by nature of fiscal function of state through influence of economy performed by taxes and duties and fiscal policy correlates with fiscal function of state as a part and whole. On the other hand, for the purpose of legal theoretical science fiscal policy is an influence of state on national economy with regulation of tax and duties and its coordination with other tools of governmental influence on economy in particular in establishment of taxes and duties and further accumulation of relevant funds. Keywords: State, Fiscal Policy, Fiscal function of state, policy.
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Sygut, Edyta. "Tax Exemptions in Excise Duty in the Context of Fiscal Efficiency." e-Finanse 14, no. 2 (June 1, 2018): 47–57. http://dx.doi.org/10.2478/fiqf-2018-0011.
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AbstractThe basic function of taxes is the fiscal function, which consists in collecting revenue by public authorities. The imposition of non-fiscal functions on taxes causes the weakening of their basic function. The purpose of the article is to present tax exemptions, as well as to assess the fiscal consequences of their application in excise duty in Poland in 2012-2016.The Polish excise duty solutions provide for numerous tax exemptions, whereby it should be noted that a significant part are attributable to EU solutions resulting from harmonisation of this tax. In light of the conducted research, it may be concluded that the applied tax exemptions have a significant influence on fiscal efficiency (causing an average revenue decrease of approximately 7% during the examined period).
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De Simone, Elina, Mariangela Bonasia, Giuseppe Lucio Gaeta, and Lorenzo Cicatiello. "The effect of fiscal transparency on government spending efficiency." Journal of Economic Studies 46, no. 7 (November 11, 2019): 1365–79. http://dx.doi.org/10.1108/jes-03-2019-0123.
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Purpose Making citizens able to monitor and evaluate public spending activities is a fundamental issue in public financial management literature. The purpose of this paper is to analyze whether fiscal transparency, measured by the Open Budget Index, has an effect on public spending performance, measured by the World Economic Forum’s Global Competitiveness Report data. Design/methodology/approach Research methods rely on random-effects panel regression models on a country-level panel data set of 82 world countries observed in the 2008–2015 time interval. Findings Results show that the potential positive effects of fiscal transparency are mediated by the level of democracy of the country. In detail, in democratic countries, a higher degree of disclosure of fiscal information is correlated with a higher efficiency of government spending while, in non-democratic countries, fiscal transparency does not seem to provide any effect. Social implications The results suggest that fiscal transparency can be a powerful device where politicians can be held accountable for their actions, while it could fail to provide positive results where a strong and effective vertical accountability is missing. Originality/value The novelty of the paper is twofold. First, it provides new additional evidence about the positive effect that fiscal transparency has on public spending efficiency by advancing previous research on this topic (Porumbescu, 2017; Montes et al., 2019). Second, the paper investigates conceptually and empirically how the positive effect on public spending efficiency determined by fiscal transparency depends on the degree of democracy present in the institutional environment in which fiscal information disclosure is implemented.
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Akosah, Nana Kwame. "Empirical appraisal of fiscal stability: the case of Ghana." Journal of Economic Studies 42, no. 5 (October 12, 2015): 753–79. http://dx.doi.org/10.1108/jes-03-2014-0045.
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Purpose – The purpose of this paper is to appraise the stability of Ghana’s fiscal policy by assessing government’s reaction in the past to rising public debt over the last three decades. Design/methodology/approach – Using quarterly data spanning 1990Q1-2013Q2, the study evaluated the mean reverting properties of Ghana’s public debt and also estimate the fiscal policy reaction function. The complementary estimation techniques include Pesaran et al. (2001) bound testing cointegration test, differencing method and also Granger two-step cointegration methods. Findings – Using quarterly data from 1990Q1 to 2013Q2, the study found the fiscal policy to be unstable in the 1990s, necessitating the adoption of Heavily Indebted Poor Countries’ initiative in 2001. The fiscal situation however relatively stabilizes afterwards following the external debt relief in 2001. Nevertheless, the study reveals that the recent fiscal policy (since 2006) seems to be confronted with tremendous fiscal pressures, exacerbated by fiscal excesses during election cycles as well as excessive domestic and external borrowings. In addition, the economic growth-debt link was found to be weak, though debt appears to adversely affect economic growth. Research limitations/implications – The study does not thoroughly explore the possibility of non-linear relationship between public debt and primary balance. Also, the result could be different using different data frequencies. Practical implications – The state of government finance has implications on the monetary policy and economic growth prospects of an economy. As an inflation targeting central bank since 2002, a successful monetary policy implementation that reins in inflation requires fiscal policy that curtails fiscal volatilities originating from imprudent behaviour of government. Therefore, the looming fiscal pressures in recent times would impair the effective implementation of the inflation targeting framework by the central bank, and also retard economic growth as the bulk of these expenditures are usually recurrent in the case of Ghana. Originality/value – This is the first paper to employ complementary econometric techniques to empirically evaluate fiscal sustainability in Ghana.
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Kuncoro, Haryo. "The Credibility of Fiscal Rules Policy and Business Cycle Volatility." Scientific Annals of Economics and Business 63, no. 2 (2016): 209–24. http://dx.doi.org/10.1515/saeb-2016-0117.
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The aim of this paper is two-fold; first, it studies the impact of the credibility of fiscal rule policy on the stability of output growth; second, it compares the effectiveness of fiscal rule policy to discretionary and automatic stabilizer fiscal policies to address the fluctuation of output growth. Employing quarterly data over the period 2001-2013 in the case of Indonesia, we obtain that the credible debt rule leads to a decrease in the volatility of output growth while the non-credible deficit rule does not have any effect. Both unsystematic and systematic components of discretionary fiscal policy have a stabilizing function. Interestingly, the automatic stabilization tends to induce the volatility of output growth. Given those results, we infer that government spending is not a good automatic stabilizer. It seems that the lower ratio of government expenditure to GDP along with improving credibility of deficit rule policy has a smoother effect on the economy. Therefore, they implicitly support expenditure cuts when implementing fiscal adjustment with the purpose of reaching fiscal sustainability in the short-run and a stable economic growth in the long-run.
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Sundvik, Dennis. "Tax-induced fiscal year extension and earnings management." Journal of Applied Accounting Research 18, no. 3 (September 11, 2017): 356–74. http://dx.doi.org/10.1108/jaar-06-2015-0051.
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Purpose The purpose of this paper is to examine three different responses to the Finnish 2005 tax reform that, among other things, reduced the corporate tax rate and hiked dividend taxation. Focus lies on the factors influencing the decision to change the fiscal year-end and whether earnings management is more prevalent when the decision is not taken. Design/methodology/approach This study uses the financial statement data of Finnish private firms and studies 350 fiscal year-end changing firms and 700 non-changing firms with logistic and linear regression analysis. Discretionary accruals are the proxy for earnings management. Findings The results suggest that firms seize the window of opportunity and extend fiscal years depending on the magnitude of the expected tax savings. Firms that do not change their fiscal year-end engage in more tax-induced earnings management. In terms of economic consequences, the earnings management approach is less economically significant. Research limitations/implications This study only examines a limited number of firms that change their fiscal year-end, hence, care has been exercised in generalising the findings. Practical implications The findings may be considered when structuring future tax reforms, particularly when considering transition rules relating to changes in fiscal year-ends. The study may also have implications beyond tax reforms since the evidence of opportunistic changes in the fiscal year-end can be informative for tax authorities, independent auditors and creditors. Originality/value This study contributes to the relatively scarce literature on private firm responses to tax policy changes by analysing both upward and downward earnings management, as well as changes in the fiscal year-end. This is in contrast to previous research that mainly focusses on listed firms and absolute earnings management or earnings management in one direction.
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Choudhury, Masudul Alam, and M. Ishaq Bhatti. "Quantitative modeling of mathematical relationships in money, spending and the real economy." Kybernetes 45, no. 2 (February 1, 2016): 323–36. http://dx.doi.org/10.1108/k-03-2015-0068.
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Purpose – The purpose of this paper is to bring out the topic of ethics and economics in reference to the nature of complementarities that can exist between monetary and fiscal activities. The connector in such complementarities is the unity of knowledge that can be generated in the inter-causal relations between monetary and fiscal activities. Design/methodology/approach – The methodology adopted is of measuring out by quantitative modeling how well there exists complementary relations or otherwise between the Central Bank and commercial bank in order to mathematically explain the role of participatory learning behavior using money, debt, and spending variables. Findings – The argument placed takes the conceptual form of result to show that there would be a prolonged extension of the non-inflationary and technological induction of economic growth in a regime of complementing money and fiscal policies. Originality/value – The role of the quantity of money in a non-inflationary economic growth is set against the background of the tripartite inter-causal relationships between the Central Bank, the commercial bank, and the real economy. Analytical methods used bring out the role of knowledge in the inter-causal relations termed as circular causation for the attainment of social well-being in response to a stable and advancing economy with the ethicality of unity of knowledge.
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Yasmin, Farrah, Saima Urooge, Muhammad Umair, and Sher Ali. "Revisiting the Dynamic Impact of Fiscal Policy on Inflation in Pakistan." Journal of Accounting and Finance in Emerging Economies 7, no. 2 (June 30, 2021): 341–48. http://dx.doi.org/10.26710/jafee.v7i2.1708.
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Purpose: The target of the present research study is to examine the Non-Ricardian regime and determination of inflation in an open economy taking the case of Pakistan. Design/Methodology/Approach: This research is carried out for the economy of Pakistan for the period of 1976–2019. To deal with the time series data we need to test the Stationarity of the data in advance to confirm the non-existence of the second I(2) of stationarity. For the purpose of stationarity testing this study used test Phillips Peron (PP) test. PP test results suggested the use of ARDL. Findings: The results of ARDL reported that the intervention of the government has a very important and dominant role the determination of price level (Inflation) in an open economy. Implications/Originality/Value: The study has concluded that the government should focus on fiscal measure as well with the extensive use of monetary policy in coordination with fiscal policy to keep inflation in control in Pakistan.
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Choi, Danny Woosik, Hyun Kyung Chatfield, and Robert Evans Chatfield. "Agency or stewardship?" International Journal of Contemporary Hospitality Management 30, no. 3 (March 19, 2018): 1352–73. http://dx.doi.org/10.1108/ijchm-09-2016-0536.
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Purpose This study aims to empirically investigate agency and stewardship theories in the US lodging market by examining the influence of fiscal and non-fiscal leadership structures on the debt financing decisions of lodging firms. Design/methodology/approach Secondary financial data have been collected for USA-based lodging firms. Subsequently, bivariate correlation, pooled ordinary least square) and endogeneity analyses have been performed on the data. Findings The findings support the significant influence of some corporate governance attributes on the capital structure of US lodging firms and show the limited applicability of agency and stewardship theories. Practical implications Theoretical and managerial implications are suggested in terms of balancing leadership structure attributes from the agency and stewardship theories, the capital structure of lodging firms and the future research. Originality/value Despite its importance considering the intensive capital and relatively high liabilities needed for success in the lodging industry, the influence of leadership structure on capital structure has not been examined either empirically or theoretically. Leadership structure attributes, both fiscal and non-fiscal, are included in the study to gain a richer understanding of their influence. The outcomes of the analysis suggest managerial implications for leadership structure as well as theoretical generalizability for agency and stewardship theories within the lodging industry.
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Chalil, Tengku Munawar. "Rethinking corruption on fiscal decentralization and global competitiveness Nexus." Competitiveness Review: An International Business Journal 30, no. 5 (January 2, 2020): 507–27. http://dx.doi.org/10.1108/cr-04-2019-0039.
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Purpose This study investigates the effects of fiscal decentralization on global competitiveness through the level of corruption. This study aims to clarify the causal impacts of fiscal decentralization policy on the achievement of competitiveness rank considering the degree of corruption in a country. Design/methodology/approach The paper uses an empirical study using both cross-country arithmetic mean and panel data, covering ten-year period (2005-2014). The analysis uses both linear and non-linear specification in search of actual intermediating effects of corruption with controlling the possible endogeneity. Findings The paper provides empirical insights about corruption effects of fiscal decentralization on global competitiveness. It suggests that increasing level of fiscal decentralization has a positive contribution to competitiveness for the less-corrupt countries. The adverse effects appear for corrupt countries where the delegation of fiscal authority should endanger the country competitiveness. Research limitations/implications This research exploits the well-known measurement of fiscal decentralization, the degree of corruption and competitiveness. Therefore, this measurement might be challenged for representing the real concept of decentralization, corruption and competitiveness, furthermore its relationship. Despite the limitation, this research explores the entanglement of fiscal decentralization, corruption and competitiveness. Practical implications The paper provides the implications for the national policymakers about decentralizing the fiscal authority to achieve higher competitiveness level, through assessing their state of corruption. Originality/value The research provides additional comments for Oates’ (1972) decentralization theorem in connection to competitiveness, by adding corruption level as pre-requisite condition.
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Arham, Muh Amir. "DESENTRALISASI FISKAL DAN PERUBAHAN STRUKTUR EKONOMI: STUDI PERBANDINGAN KAWASAN SULAWESI DAN JAWA." EKUITAS (Jurnal Ekonomi dan Keuangan) 18, no. 4 (February 2, 2017): 431. http://dx.doi.org/10.24034/j25485024.y2014.v18.i4.2155.
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Fiscal decentralization policies by giving greater authority to the regions to create efficiency and effectiveness to provide public goods, because the area is considered better understand the preferences of the community. Besides, fiscal decentralization policies can accelerate economic growth and changes in economic structure that has a devastating impact on the region is still considered backward. In general, backward areas still rely on primary sectors such districts/municipalities in Sulawesi, while the districts/municipalities in Java, relying on non-primary sector tends to be more advanced. Therefore, in general the economy is still underdeveloped Sulawesi compared to Java. The purpose of this research is to analyze the effect of fiscal decentralization on economic structural change districts/municipalities by comparing the two areas considered different economic structure, Sulawesi and Java. By using a panel analysis of data from 2001-2010 results showed that the fiscal decentralization policies has no effect on changes in the economic structure in Sulawesi. Java, while in the region shows that the negative effect of fiscal decentralization, it means diminishing the role of the primary sector, which leads to changes in the economic structure.
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Arham, Muh Amir. "DESENTRALISASI FISKAL DAN PERUBAHAN STRUKTUR EKONOMI: STUDI PERBANDINGAN KAWASAN SULAWESI DAN JAWA." EKUITAS (Jurnal Ekonomi dan Keuangan) 18, no. 4 (September 6, 2018): 431–51. http://dx.doi.org/10.24034/j25485024.y2014.v18.i4.96.
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Fiscal decentralization policies by giving greater authority to the regions to create efficiency and effectiveness to provide public goods, because the area is considered better understand the preferences of the community. Besides, fiscal decentralization policies can accelerate economic growth and changes in economic structure that has a devastating impact on the region is still considered backward. In general, backward areas still rely on primary sectors such districts/municipalities in Sulawesi, while the districts/municipalities in Java, relying on non-primary sector tends to be more advanced. Therefore, in general the economy is still underdeveloped Sulawesi compared to Java. The purpose of this research is to analyze the effect of fiscal decentralization on economic structural change districts/municipalities by comparing the two areas considered different economic structure, Sulawesi and Java. By using a panel analysis of data from 2001-2010 results showed that the fiscal decentralization policies has no effect on changes in the economic structure in Sulawesi. Java, while in the region shows that the negative effect of fiscal decentralization, it means diminishing the role of the primary sector, which leads to changes in the economic structure.
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Passamani, Giuliana, Roberto Tamborini, and Matteo Tomaselli. "Sustainability vs credibility of fiscal consolidation." Journal of Risk Finance 16, no. 3 (May 18, 2015): 321–43. http://dx.doi.org/10.1108/jrf-11-2014-0163.
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Purpose – The purpose of this paper is to explain why some countries in the eurozone between 2010 and 2012 experienced a dramatic vicious circle between hard austerity plans and rising default risk premia. Were such plans too small, and hence non-credible, or too large, and hence non-sustainable? These questions have prompted theoretical and empirical investigations in the line of the so-called “self-fulfilling beliefs”, where beliefs of unsustainability of fiscal adjustments, and hence default on debt, feed higher risk premia which indeed make fiscal adjustments less sustainable. Design/methodology/approach – Detecting the sustainability factor in the evolution of spreads is uneasy because it is largely non-observable and may be proxied by different variables. In this paper, the authors present the results of a dynamic principal components factor analysis (PCFA) applied to a panel data set of the 11 major EZ countries from 2000 to 2013, consisting of each country’s spread of long-term interest rate over Germany as dependent variable, and an array of leading fiscal and macroeconomic indicators of solvency fiscal effort and its sustainability. Findings – The authors have been able to identify the role of these indicators that combine themselves as significant latent variables in boosting spreads. Moreover, the large joint deterioration of these variables is identifiably located between 2009 and 2012 and particularly for the group of countries under most severe default risk (with Italy and France as borderline cases). The authors also find evidence that the announcement of the European Central Bank Outright Monetary Transactions program has improved the sustainability assessment of sovereign debts. Originality/value – Dynamic PCFA is a rather unusual technique with respect to standard econometric tests of models, which is particularly well-suited to reduce the number of variables in a data set by extracting meaningful linear combinations from the observed variables that may concur to explain a given phenomenon (the dependent variable). These combinations, called “common factors”, can be interpreted as latent, non-observable variables.
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Vlamis, Prodromos. "Greek fiscal crisis and repercussions for the property market." Journal of Property Investment & Finance 32, no. 1 (January 28, 2014): 21–34. http://dx.doi.org/10.1108/jpif-08-2013-0052.
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Purpose – The aim of the paper is to present a review of the fiscal imbalances and debt crisis in Greece and identify the possible links with the recent developments in the Greek property market. Design/methodology/approach – The author follows a non-technical approach to discuss a number of factors that have contributed to the fiscal crisis that Greece has been experiencing since October 2009. The author critically analyses both the “internal” causes of the deteriorating fiscal stance of the Greek economy (that is the prolonged macroeconomic imbalances that the Greek economy faces and the credibility problem of macroeconomic policy) and the “external” factors that might have contributed to the Greek fiscal crisis (that is implications of the recent financial turmoil and the timing of the response of Europe to the Greek fiscal crisis). The author then studies the extent to which fiscal imbalances and the debt crisis have affected the Greek property sector. Findings – The analysis indicates that the current fiscal stance of the Greek economy and the Greek property market crisis are intertwined. Practical implications – The author believes that these results are useful, make a contribution to the existing knowledge and provide some evidence that current economic recession has a considerable adverse effect on the property sector in Greece. Originality/value – One of the distinctive features of the paper is to critically discuss the direct and indirect effects of the prolonged macroeconomic imbalances on the Greek property sector. To the best of the author's knowledge, none of the existing studies in this area provides systematic treatment of the Greek fiscal crisis as a contributory factor in explaining the current crisis in the Greek property market.
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Na, Hyung Jong, Kun Chang Lee, and Seong Tae Kim. "Integrating Text-Mining and Balanced Scorecard Techniques to Investigate the Association between CEO Message of Homepage Words and Financial Status: Emphasis on Hospitals." Healthcare 9, no. 4 (April 1, 2021): 408. http://dx.doi.org/10.3390/healthcare9040408.
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(1) Background: The Chief Executive Officer’s (CEO’s) message on a hospital’s homepage on the Internet contains various components, such as the hospital’s future vision, promises to customers, availability of upgraded services and public activities. This statement usually includes non-financial information as well as financial information about the corporate entity owning/operating the hospital. In addition, it provides useful information about not only the company’s goals and vision, but also firm performance targets and strategies for the future. This study aims to investigate associations between the CEO’s message and the financial status of the institution. We used the balanced scorecard framework to analyze what content on the hospital’s homepage is related to the hospital’s various financial ratios. (2) Methods: We adopted a text-mining method to extract significantly repeated keywords from the CEO’s message on the hospital’s website. Then, we classified these keywords using a balanced scorecard approach. To examine the relationship between keywords in the CEO’s message and the hospital’s financial ratios, a t-test was conducted for the difference in the term frequency divided by inverse document frequency (TF-IDF) mean of the home page contents and its relationship with the views of the balanced scorecard framework. (3) Results: According to our empirical results on 65 samples collected from local hospitals, there are some significant relationships between the qualitative content of the hospital’s homepage and the quantitative financial ratios that indicate profitability, activity, leverage, liquidity, and accumulating reserves for proper business purposes. (4) Conclusions: The introduction section of a homepage is the part most accessible to customers, containing the aims and ideals of the hospital and reflecting the institution’s values and visions. In addition, in the coverage of financial status, the organization can either emphasize financial strength or focus on other areas to divert attention from any weakness shown in the financial information. This study reminds us of the importance of the hospital website’s disclosure, and what can be inferred from the financial status of the hospital. It also highlights the need for reconciliation and harmony between the quantitative data, financial statements, and qualitative data in the CEO’s message. (5) Implications: To the best of our knowledge, this paper is the first research attempting to investigate the relationship between text on the hospital’s homepage and the hospital’s financial ratios using text-mining techniques and the balanced scorecard framework. Hospitals play a crucial role in a country’s welfare and healthcare industry. Nevertheless, in many countries, hospital organizations tend to remain a source of critical fiscal deficits due to ineffective and sloppy management. We expect that the result of this paper can provide hospital managers with useful information to address that situation.
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Nuru, Naser Yenus. "Government spending multipliers over business cycle." African Journal of Economic and Management Studies 11, no. 1 (October 4, 2019): 18–29. http://dx.doi.org/10.1108/ajems-05-2019-0187.
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Purpose The purpose of this paper is to show the asymmetric effects of government spending shocks for South Africa over the period 1960Q1–2014Q2. Design/methodology/approach A threshold vector autoregressive model that allows parameters to switch according to whether a threshold variable crosses an estimated threshold is employed to address the objective of this paper. The threshold value is determined endogenously using Hansen (1996) test. Generalized impulse responses introduced by Koop et al. (1996) are used to study the effects of government spending shocks on growth depending on their size, sign and timing with respect to the economic cycle. The author also uses a Cholesky decomposition identification scheme in order to identify discretionary government spending shocks in the non-linear model. Findings The empirical findings support the state-dependent effects of fiscal policy. In particular, the effects of 1 or 2 standard deviations expansionary or contractionary government spending shock on output are very small both on impact and in the long run; and a bit larger in downturns but has only a very limited effect or no effect in times of expansion. This result gives support to the evidence in the recent literature that fiscal policy in developing countries is overwhelmingly procyclical. Originality/value It adds to the scarce empirical fiscal literature of the South African economy in particular and developing economies in general by allowing non-linearities to estimate the effect of government spending shocks over economic cycle.
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Stawska, Joanna. "Imbalance of the public finance in the context of Keynesian and Non-Keynesian effects of fiscal policy limitation." INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND BUSINESS ADMINISTRATION 3, no. 3 (2017): 27–32. http://dx.doi.org/10.18775/ijmsba.1849-5664-5419.2014.33.1003.
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The purpose of this article is to point out the importance of the size of public debt and deficit in the context of Keynesian and non-Keynesian effects of fiscal policy limitation. To achieve this objective primarily were used methods of analysis of the available literature and presentation of statistical data. Considerations include, among others, the presentation of public debt and deficit in the context of economic growth. Expansionary fiscal policy often caused by economic fluctuations contributes to the deepening of public finance imbalance with frequent decline in GDP growth. The restrictive policy has an influence on improving the situation of the public finance sector in the long-term with at least moderate economic growth.
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Brezeanu, Petre, Adriana Florina Popa, Daniela Nicoleta Sahlian, Monica Florentina Calopereanu, and Ramona Tatiana Damian. "Study on the fiscal behavior at an international level." Proceedings of the International Conference on Business Excellence 13, no. 1 (May 1, 2019): 601–12. http://dx.doi.org/10.2478/picbe-2019-0053.
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Abstract Apparently, defining fiscal behavior is a relatively easy approach, but in essence, this concept requires the research of several elements, both economic and psychological. The taxpayer is the component of the tax system that reflects the fiscal policy and, implicitly, its changes. Thus, research in the field has shown that two types of behavior can be identified by combining several economic, psychological, religious or cultural factors: fiscal compliance or fiscal non-compliance. The research ideea may be motivated by the growing importance of tax behavior and compliance subject, especially in the current economic situation, when taxation has become a controversy at any time and in any society, regardless of the degree of democracy. Moreover, tax compliance does not refer only to the economic aspects, but also to the behavioral aspects that influence the process of raising public taxes. The econometric study analyzes the fiscal correlation between the public debt and tax variables such as tax revenues from direct and indirect taxes or social contributions, conected to the dynamics of the gross domestic product and the scale of payments balance. The study is conducted for two groups of countries: developed and emerging countries. The purpose of this research is to identify both the impact of tax revenues on direct, indirect taxes and social contributions, and that of the dynamics of gross domestic product and scale of payments balance on public debt, showing how fiscal behavior is influenced by the two groups of countries and what factors contribute to this.
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Lois, Petros, George Drogalas, Alkiviadis Karagiorgos, and Aikaterini Chlorou. "Tax compliance during fiscal depression periods: the case of Greece." EuroMed Journal of Business 14, no. 3 (October 7, 2019): 274–91. http://dx.doi.org/10.1108/emjb-02-2019-0028.
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Purpose Governments count on tax revenues in order to finance their fiscal and social activities. The purpose of this paper is to analyse the citizens’ conception of tax compliance and examine the factors affecting tax behaviour. Design/methodology/approach This survey was conducted through a stratified sample and questionnaires consisted of closed-ended questions. A linear regression and a series of reliability tests including an analysis of variance were conducted with IBM Statistical Package for Social Sciences. Findings The majority of the respondents demonstrate a positive perspective towards tax compliance and tax administration employees that inspire it. However, while the fairness of the tax system is evident, findings indicate a deeper issue of social and behavioural influences, including the characteristics of tax administrative employees and tax morality. Research limitations/implications The findings are subject to over- or sub-representation, since the sample derived from groups whose occupations feature strong tax compliance. The study was conducted in Greece, and it is possible that the results can be generalised to developing countries with similar economic environments and fiscal circumstances. Practical implications Non-economic factors affect tax behaviour and the formation of modern tax strategies. This survey enables governments to improve tax compliance rates and increase tax revenues. Fiscal depression tends to decrease state revenues. Tax compliance factors should be taken into account through tax decision-making processes and ensure efficient tax collection. Originality/value This paper furthers the existent literature and deepens in non-economic factors of morality, revealing tax behaviours instigated by reasons beyond tax unfairness.
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Baran, Bernadeta. "Budgetary Discipline and Internal Devaluation – Estonian Method to Overcome the Crisis." Equilibrium 9, no. 2 (June 30, 2014): 9–23. http://dx.doi.org/10.12775/equil.2014.008.
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The purpose of this article is to outline the main reasons and effects of the Estonian adjustments in response to the global financial and economic crisis. Estonia chose significant budgetary savings, in contrast with most other countries stimulating their economies by expansionary fiscal policy and leading to fiscal imbalances and growing public debts. Estonia did not carry out a devaluation of its currency, but restored competitiveness through internal devaluation. This strategy allowed Estonia to maintain a fixed exchange rate, fulfill the Maastricht criteria and adopt the single currency. As a result, Estonia has increased the stability of its economy, restoring and enhancing confidence among investors. At the same time, the Estonian strategy confirmed the existence of non-Keynesian effects – the positive economic results of public spending reduction.
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Carratù, Maria, Bruno Chiarini, Antonella D’Agostino, Elisabetta Marzano, and Andrea Regoli. "Air pollution and public finance: evidence for European countries." Journal of Economic Studies 46, no. 7 (November 11, 2019): 1398–417. http://dx.doi.org/10.1108/jes-03-2019-0116.
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Purpose The purpose of this paper is to investigate whether a statistically significant relationship exists between environmental quality, as measured by consumption-related air pollution, and public debt in Europe. In addition, since the debt burden is one of the most important indicators of fiscal soundness within the European Union (EU) Treaty and the subsequent fiscal compact, the authors propose a simple test to determine whether participation in EU Treaties has shaped the empirical relationship between fiscal policy/public debt and environmental performance. Design/methodology/approach To this end, the authors built a panel data set that covers 24 European countries over the period 1996–2015. Findings The aspect that the authors want to underline is a possible trade off, which is confirmed in the empirical analysis, between the public finance equilibrium and the maintenance of a public good such as air quality. However, there are important non-linearities that shape the interaction between public debt and environmental pollution. Similarly, threshold effects arise when the authors examine the interaction between EU regulation and public debt and when the authors separately examine high debt and low debt countries. When the authors account for the stabilization rules introduced by EU Treaties, a negative effect on pollution is evident; in this way, fiscal consolidation limits the positive effect of fiscal policy. Practical implications The results point out the existence of a potential trade-off between the role of EU as a regulator aiming to mitigate environmental pollution, and its role within the Stability and Growth Pact. The analysis highlights that fiscal consolidation policies, while facilitating the achievement of macroeconomic stability within EU, might have a negative side effect on the environment quality, which spreads beyond the borders of one single country. Originality/value While a number of studies have suggested that fiscal spending might contribute to the level of pollution in European countries, there is scant evidence of the effect of public debt on environmental performance. This lack of scientific knowledge is a serious shortcoming, since it may allow for an underrepresentation of the wide-ranging consequences of stabilization programmes targeting the debt-to-GDP ratio, which could affect environmental quality.
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SYNYUTKA, Nataliya, and Kateryna KRYSOVATA. "FISCAL DYSFUNCTION OF VAT ELECTRONIC INVOICING IN UKRAINE." WORLD OF FINANCE, no. 4(61) (2019): 23–36. http://dx.doi.org/10.35774/sf2019.04.023.
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Introduction. During 2014–2017 VAT electronic invoicing was adopted in Ukraine, which allows for the automatic exchange of tax data between taxpayers and tax authorities. It was estimated the positive impact of e-invoicing reform on gross sales and purchases, tax liabilities across all firms, tax compliance etc. Purpose. The purpose of the article is to study the impact of VAT e-invoicing on a fiscal efficiency of the tax. Methodological approaches to understand the essence and nature of the taxation of spending under the conditions of an innovative digital trend in society can be used to implement a fair fiscal policy in Ukraine. Methods. The author used scientific methods such as abstraction, deduction, comparison, analysis, systematization and others. It was used statistical data, data of tax authorities, data of the State Treasury Service of Ukraine. Results. It was established that e-invoicing in Ukraine increases VAT refund and improves its mechanism firstly. On the other hand, digital technologies positive effect on tax collection for imported goods and services in Ukraine. Despite that, the fiscal efficiency of VAT hasn`t increased. Conclusions. The lack of a positive impact of e- reform on value added tax collection in Ukraine was revealed. The main factors causing fiscal VAT dysfunction in Ukraine are: a significant shadow economy, the sale of goods and services to end-users using a simplified tax system, tax benefits for the rapidly growing agricultural sector, non-taxation of electronic goods and services. Digital tools, e-invoicing system should be supplemented by other reforms to improve revenue mobilization, enhance compliance.
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Bhat, Javed Ahmad, and Naresh Kumar Sharma. "Identifying fiscal inflation in India: some recent evidence from an asymmetric approach." Journal of Economics, Finance and Administrative Science 25, no. 50 (June 20, 2020): 363–93. http://dx.doi.org/10.1108/jefas-03-2019-0032.
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Purpose Among the many factors fueling the inflationary tendencies in an economy such as monetary shocks, structural shocks, demand shocks, external shocks and demographic changes, the issue of inflation (INF) has also been found to be related to fiscal policy decisions of the government. The purpose of this study is to investigate the inflationary tendencies in India particularly from the fiscal point of view. The study also examines the influence of other potential determinants such as output growth rate, interest rate, trade-openness (TO) and oil price inflation (OPI). Design/methodology/approach To examine the dynamic nature of association between fiscal deficit and inflation, the study applies the Toda-Yamamoto (1995) test and Breitung and Candelon (2006) test to investigate the nature of causality in time and frequency domain frameworks. In addition, to scrutinize the possibility of a long-run association, that too from an asymmetric point of view, the study applies a Non-linear Autoregressive Distributed lag model (NARDL) given by Shin et al. (2014). Finally, non-linear cumulative dynamic multipliers are used to trace the traverse between disequilibrium position of short-run and subsequent long-run equilibrium of the system. Findings The authors found a unidirectional causality from fiscal deficit to inflation in case of time domain analysis and no feedback causality is reported. However, in case of frequency domain design, causality from fiscal deficit to inflation is found at low frequencies only, i.e. no short-run causality is established and hence dynamic nature of the relationship between the two variables is vindicated. Using NARDL model, the results document the existence of an asymmetric long-run direct association between fiscal deficit and inflation. However, an increase in deficit is found to be more inflationary and a decrease affects the inflation with a lower magnitude. The asymmetric impact of fiscal deficit on inflation can be explained through the existence of liquidity constraints, consumption-investment downward inflexibility and the downward price stickiness. Contractionary monetary policy action is found to be more effective than an expansionary one, signifying the asymmetric influence of monetary policy actions on the inflation of India. Similarly, in a supply-constrained economy with downward price rigidity, the authors found an asymmetric impact of output growth and output decline on inflation. As regard to the trade-openness, although an asymmetry is reported, the signs refute the validation of Romer (1993) hypothesis. Finally, the impact of oil price inflation on the inflationary pressures is according to theory but the coefficients are devoid of statistical significance. Practical implications These results indicate some important policy recommendations. Fiscal consolidation strategy should be executed in an appreciable manner to achieve the sound fiscal health and lower INF. The disciplined fiscal strategy would also be imperative for an effective monetary policy. Monetary authorities should possess noticeable credibility to manage the macroeconomic system and policy stances should be implemented according to requirements of the economy. Growth in output should be encouraged to have two-fold benefits to the economy – reducing INF on the one hand and fiscal deficits on the other. Originality/value The study contributes to the existing literature in the following ways. First, taking note of dynamic nature of the relationship between these two variables, the study examined the deficit INF nexus in a dynamic and asymmetric framework. The novelty of the study is ensured by the very nature of it is the first study in case of India to identify the fiscal INF in an asymmetric configuration. The authors applied a NARDL model, given by Shin et al. (2014) to examine the existence of any cointegrating relationship in an asymmetric paradigm. Second, the nature of causality between fiscal deficit and INF has been examined in a time domain and FD framework to portray precisely the casual interactions between these two variables in the short-run and long run. The study will, therefore, enrich the existing literature along the asymmetric lines.
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McDonald, Robert E., Jay Weerawardena, Sreedhar Madhavaram, and Gillian Sullivan Mort. "From “virtuous” to “pragmatic” pursuit of social mission." Management Research Review 38, no. 9 (September 21, 2015): 970–91. http://dx.doi.org/10.1108/mrr-11-2013-0262.
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Purpose – The purpose of this paper is to offer a sustainability-based typology for non-profit organizations and corresponding strategies to sustain the mission and/or financial objectives of non-profit organizations. The balance of mission and money, known in the non-profit literature as the double bottom line, is a challenge for professional managers who run non-profits and scholars who study them. Design/methodology/approach – Typologies are often used to classify phenomena to improve understanding and bring about clarity. In this paper, non-profit organizations are viewed from a social and fiscal viability perspective, developed from the long standing challenge of balancing mission and money. Findings – The typology developed in this paper identifies several normative strategies that correspond to the social and fiscal viability of non-profit organizations. In fact, the strategies offered in this paper can help non-profit managers achieve organizational sustainability, thus enabling them to continue what they are meant to do – to provide greater social value to their constituents. Research limitations/implications – The typology presented is a classification system rather than a theoretical typology. Its purpose is to help managers of non-profits to recognize threats to their organizations’ long-term survival and offer strategies that if adopted can move the organizations to less vulnerable positions. However, the recommended strategies are by no means exhaustive. Furthermore, the focus of the paper is on non-profit organizations, not profit-driven or hybrid entities. The sustainability-based typology of non-profit organizations and the corresponding strategies have implications for practitioners and academics. The typology and its contents can help managers assess their non-profits, competitive environment and their current strategies, plan their double bottom line strategies and last but not the least, develop and implement strategies for social and fiscal sustainability. In addition, our paper provides great opportunities for future research to subject our typology and its contents to conceptual and empirical scrutiny. Practical implications – The strategies described here are developed based on scholarly research and examples from successful non-profits. The typology and the related list of strategies provide a manager with the tools to accurately diagnose organizational challenges and adopt plans to improve the organization’s viability. Social implications – Non-profit organizations are an integral part of society that bolsters economic prosperity, environmental integrity and social justice. This paper may provide guidance for a number of non-profit managers to keep their organizations operating and serving important social missions. Originality/value – In the context of organizations for social mission, several typologies exist that looked at firms from the perspectives of ownership versus profit objectives, entrepreneurship conceptualizations of economists and origins and development paths of social enterprises. While these typologies provided foundations for theoretical and empirical work into social enterprises, our typology offers strategies for the sustainability of mission and/or money objectives of non-profits. The value of this research lies in integrating virtuous and pragmatic objectives of non-profit sustainability that, in turn, can ensure the social mission of non-profits.
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Ilmiyono, Agung Fajar, Yohanes Indrayono, Hurriyaturrohman -, and Sharah Salsabila. "BOOKTAXDIFFERENCESINLARGETRADINGSUB-SECTORCOMPANIES." Neraca Keuangan : Jurnal Ilmiah Akuntansi dan Keuangan 15, no. 1 (August 14, 2020): 23. http://dx.doi.org/10.32832/neraca.v15i1.3331.
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Taxes play a very important role as a source of state revenue. The existence of corporate obligations as corporate taxpayers results in the implementation of bookkeeping compiled based on General Provisions and Tax Procedures. The purpose of this study is (1) To explain the application of PSAK 46 regarding income tax accounting in large trading subsector companies listed on the Indonesia Stock Exchange. (2) To explain the application of the income tax laws to large trading subsector companies listed on the Indonesia Stock Exchange. (3) To explain the differences between commercial profits and fiscal profits after a fiscal reconciliation (correction) is made to a large trading subsector company listed on the Indonesia Stock Exchange (4) To explain the comparison of compliance rates of large trading sub-sectors listed on the Indonesia Stock Exchange in 2016 -2018 in the Income Tax ActThis research was conducted on large trading sub-sector companies listed on the Indonesia Stock Exchange in 2016 -2018. Samples used in this study were 6 companies. Samples were selected using the purposive sampling method. The analytical method used in this research is descriptive non statistic which functions as an analyzer of the collected data.The results of the study show that in the large trading sub-sector companies that have been analyzed, there are parts of deductible expenses to be used as non-deductible expenses, there is a lot of reserve fund fertilization so that it cannot reduce fiscal profit and there are companiesthat have participated in tax amnesty so that they get a profit on tax that should be owed. Related to the phenomena presented in the background of the study, the tax revenue from the wholesale trade sub-sector is not only from Income Tax Article 22 Imports, but from aspects of costs that cannot reduce fiscal profits (nondeductible expenses) included in Article 9 of the Tax Law Income so that the more costs that cannot be reduced in fiscal profit, the greater the tax burden owed. After a comparison, the fiscal reconciliation of PT Lautan Luas Tbk is a company that meets the Income Tax Act regulations.
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Fedoryshyna, Lidiia. "THE MECHANISM OF FISCAL POLICY." Three Seas Economic Journal 1, no. 1 (June 10, 2020): 28–32. http://dx.doi.org/10.30525/2661-5150/2020-1-5.
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The purpose of this article is to study fiscal policy, which is one of the methods of regulating the country's macroeconomic policy. Theoretical approaches of scientists to the definition of the term "fiscal policy" are investigated. The contents and principles of the functioning of the mechanism of fiscal policy are disclosed. Method. Theoretical approaches to the definition of mechanisms and discrete components of the fiscal policy of the state and its criteria characteristics have been developed. The research has been based on the use of a systematic approach to the consideration of fiscal phenomena, on the fundamental principles of economic theory, systems theory, theory of finance, theory of taxes, etc. Results. It is observed that the budget deficit and the national debt are closely linked: the increase in the budget deficit leads to an increase in the national debt. But the absolute magnitude of the budget deficit, and therefore of the public debt, does not provide enough information for economic analysis. It is necessary to know what processes the budget deficit is serving, what changes in the reproduction cycle it reflects. It is also very important to measure changes in public debt in relation to changes in GDP. In addition, the tax burden is increasing as a result of these changes. Value/originality. It is determined that along with the expected changes in the methodology of calculation and procedure of tax payment, taxpayers are also concerned about the question of changing the tariff grid by the total amount of taxes due in absolute terms and in relation to the volume and resultant indicators of production activity (revenue, profit). An innovative tariff policy has been proposed and opportunities for using non-traditional agricultural insurance products have been revealed. Recommendations to improve the fiscal policy of the state have been made. The conceptual platform for harmonizing the mechanism of fiscal policy regarding economic entities is substantiated.
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Bodayuk, Adam. "Theoretical and methodological aspects regarding the evaluation of a super-resource product." Problems of Innovation and Investment Development, no. 24 (April 24, 2021): 123–33. http://dx.doi.org/10.33813/2224-1213.24.2021.12.
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The subject of the study is the value of geological objects investigated for the needs of defining a number of concepts related to economic and fiscal geology. The purpose of this article is to substantiate the nature of resource-resource fiscalization of subsoil use and methods of estimated calculation of its indicators. Methodology of work – the method of monographic analysis (in determining the cost-resource approach); method of abstract-logical analysis (in defining the system of concepts of economic and fiscal geology); method of generalization (when forming conclusions and suggestions). Methodology of work – method of abstract-logical analysis (in defining the system of concepts of fiscal geology, in particular, fiscal subsoil-resource product); monographic analysis (when using the resource-cost approach), volumetric- geochemical method (to quantify the estimated and prospective resources by the results of geochemical studies); comparison and generalization (when forming conclusions and proposals). Results of work. According to the results of the conducted researches of the essence, content, processes of subsoil use and methods of determining its cost indicators, according to literature sources and official documents, certain fiscal concepts of fiscal geology are substantiated. The essence of resource-based fiscalisation in subsoil use is defined as the conduct of certain studies of subsoil objects, the allocation of subsoil products, the determination of their resource indicators, and the establishment using official and non-official methods of value of these objects.The value-for-money approach to the evaluation of the subsoil resource product (required) is substantiated. This approach first distinguishes the explorable geological object, further distinguishes it from subsoil resources, then provides these products with specific methods of value estimation. These estimates determine the expected sale price of the property, the cost of renting the property, permanent ownership, permanent use, etc., as well as payments to the state treasury. Conclusions and suggestions. Cost and resource fiscalisation is interpreted as the determination of the fiscal value of subsoil resources products, on the basis of which the fiscal payments are calculated. The methodologies for calculating the cost of mining are necessary with certain additions and practical calculations combined into a recommendation document, discuss it, check it in practice, make certain adjustments and officially approve it for use in determining the fiscal value. Keywords: subsoil, minerals, resources, costs, expenses, extraction, payment.
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Božović, Srđa. "Affirmation of the Legal Status of Taxpayers in Montenegro." Journal of Central Banking Theory and Practice 5, no. 3 (September 1, 2016): 121–38. http://dx.doi.org/10.1515/jcbtp-2016-0023.
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Abstract Public needs cannot be adequately funded without a clear and legally based affirmative legal status of taxpayers. The promotion and protection of their rights and regular fulfilment of tax obligations by taxpayers is the basis of fiscal and financial stability of the country and other public collectivities. It is essential for Montenegro to overcome the traditional gap between taxpayers and tax administration through their partnership. At the same time, we must not jeopardize the basic purpose of taxation - legal and timely payment of taxes. Simple and stable tax regulations and a non-discriminating and subtle approach to building tax discipline and development of tax morale should serve that purpose.
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Kopits, George. "Political Economy of Fiscal Reform in Central and Eastern Europe." Competitio 8, no. 1 (June 15, 2009): 66–75. http://dx.doi.org/10.21845/comp/2009/1/4.
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The reform of public finances has been at the centre of the post-socialist transition of Central and Eastern Europe since the early 1990s. At various stages of the transition, the reform process encompassed the entire gamut of public finances: the national budget, sub-national finances, extrabudgetary operations, and state-owned financial and non-financial enterprises. For the most part, fiscal reform was a non-linear stop-and-go process – often characterised by backtracking as well – and was uneven across countries. Moreover, unlike most reform experience in the rest of the world, fiscal reform in this region took place against the backdrop of a radical break, as sovereign countries emerged from a colonial past following the collapse of the Soviet Union. An important milestone was reached in 2004–2007, when all ten countries covered in this article became members of the European Union. The purpose of this article is to discuss fiscal reform in Central and Eastern Europe from the perspective of political economy. Following an overview of basic reform trends, the article focuses on the principal drivers and impediments to reform in the region. To conclude, the ingredients of successful reform are examined. The article does not provide an exhaustive inventory of reform measures, nor does it offer a survey of broad political economy issues prior to or during the transition period. Country references are intended to serve as stylised illustrations of main points, rather than as a comprehensive documentation of reform episodes.
Journal of Economic Literature (JEL) classifications: H1, H3, P2, P52.
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Asongu, Simplice. "Are proposed African monetary unions optimal currency areas? Real, monetary and fiscal policy convergence analysis." African Journal of Economic and Management Studies 5, no. 1 (April 1, 2014): 9–29. http://dx.doi.org/10.1108/ajems-02-2012-0010.
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Purpose – A spectre is hunting embryonic African monetary zones: the European Monetary Union crisis. The purpose of this paper is to assess real, monetary and fiscal policy convergence within the proposed WAM and EAM zones. The introduction of common currencies in West and East Africa is facing stiff challenges in the timing of monetary convergence, the imperative of central bankers to apply common modeling and forecasting methods of monetary policy transmission, as well as the requirements of common structural and institutional characteristics among candidate states. Design/methodology/approach – In the analysis: monetary policy targets inflation and financial dynamics of depth, efficiency, activity and size; real sector policy targets economic performance in terms of GDP growth at macro and micro levels; while, fiscal policy targets debt-to-GDP and deficit-to-GDP ratios. A dynamic panel GMM estimation with data from different non-overlapping intervals is employed. The implied rate of convergence and the time required to achieve full (100 percent) convergence are then computed from the estimations. Findings – Findings suggest overwhelming lack of convergence: initial conditions for financial development are different across countries; fundamental characteristics as common monetary policy initiatives and IMF-backed financial reform programs are implemented differently across countries; there is remarkable evidence of cross-country variations in structural characteristics of macroeconomic performance; institutional cross-country differences could also be responsible for the deficiency in convergence within the potential monetary zones; absence of fiscal policy convergence and no potential for eliminating idiosyncratic fiscal shocks due to business cycle incoherence. Practical implications – As a policy implication, heterogeneous structural and institutional characteristics across countries are giving rise to different levels and patterns of financial intermediary development. Thus, member states should work towards harmonizing cross-country differences in structural and institutional characteristics that hamper the effectiveness of convergence in monetary, real and fiscal policies. This could be done by stringently monitoring the implementation of existing common initiatives and/or the adoption of new reforms programs. Originality/value – It is one of the few attempts to investigate the issue of convergence within the proposed WAM and EAM unions.
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Tkacheva, T. J. "FORMATION OF THE REGION TAX POTENTIAL WITH INCOME ACCOUNT IN THE NON-OBSERVED ECONOMY." Proceedings of the Southwest State University 21, no. 6 (December 28, 2017): 135–42. http://dx.doi.org/10.21869/2223-1560-2017-21-6-135-142.
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The article considers the issues of formation of the region tax potential taking into account incomes in the non-observed economy. The purpose of the article is to substantiate the author's methodology for assessing the tax potential, taking into account income in the non-observed economy. It is substantiated the expediency of using indirect methods of measuring the incomes of the non-observed economy for calculating the tax potential of a constituent of the Russian Federation In accordance with the author's methodology consumer spending can be an indicator of the aggregate income of both registered and unregistered. The shadow incomes of the population can be estimated as the excess of total expenditures over the real disposable income of the population. More calculations have shown that the regions of the Central Federal District have significant amounts of unused financial resources, which can be a source of growth of tax revenues of regional and local budgets in the event of their withdrawal from the shadow turnover. With regard to the alcohol market for the method of discrepancy we consider it appropriate to use the indicators of production and wholesale turnover of alcohol products in the Russian Federation. It is concluded that using the proposed approaches to assessing the tax potential of the region, state authorities at different levels will be able to more effectively monitor regional budgets and increase the effectiveness of fiscal and fiscal mechanisms for sustainable development. Commitment to the qualitative characteristics of the region tax potential, taking into account income in the non-observed economy, will increase the efficiency of using the aggregate tax potential. Tax revenues serve as a quantitative expression of the actually achieved level of the tax potential of the territory. The tax potential ensures the formation of fiscal flows in order to maintain a dynamic balance between the key areas of socio-economic development of the territories and through feedback mechanisms influencing trends of sustainable regional development.
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Sinha, Ram Pratap. "FISCAL PERFORMANCE BENCHMARKING OF INDIAN STATES-A ROBUST FRONTIER APPROACH." Central European Review of Economics and Management 1, no. 4 (December 29, 2017): 225. http://dx.doi.org/10.29015/cerem.527.
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Aim: The objective of the paper is to construct an index of fiscal performance of Indian states using four non-parametric approaches ( Data Envelopment Analysis(DEA), Free Disposal Hull(FDH), Order-m and Order-alpha).The reason behind using non-parametric methods for the purpose of construction of index is that the traditional ratio approach is incapable of handling multiple input and output indicators.Research methods: The present study uses a two stage approach. In the first stage, four non-parametric methods have been used to evaluate the performance of Indian states for five consecutive years. The input and output indicators have been selected on the basis of a simple theoretical model. Further, in order to tackle the problem of estimation bias (due to sampling variations) bootstrapped DEA and bootstrapped Order-m methods have been applied. In the second stage ,impact of indebtedness on the performance of the states has been assessed using a censored regression framework.Findings: The major outcome of the study is the construction of a fiscal performance index based on multiple indicators. Moreover, the second stage results indicate that state performance is significantly influenced by their degree of indebtedness.Originality/Value of the article: The present study is perhaps the first attempt to assess the performance of sub-national units in terms of both convex and non-convex mathematical programming methods.Implications of the research : The approach (with suitable modifications) can be effectively used to benchmark state performance which can serve as a basis for resource transfer from the central government to the states.