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Previous research shows that wars contributed to the expansion of state revenues in the Early Modern period and in the twentieth century. There are, however, few cross-national studies on the long nineteenth century. Using new unbalanced panel data on wars and public revenues from 1816 to 1913 for 27 American and European countries, this article provides new evidence that military conflicts very rarely triggered lasting increases in public revenues during those years. We argue that the uneven diffusion of military innovations reduced the probability that international wars would be sufficiently intense to push state actors to seek additional resources. Moreover, the distinction between international and civil wars was blurred by the opportunities for non-state actors to mobilize military forces comparable to those of the state. Therefore, only very intense international and civil wars had a lasting impact on state revenues, but such conflicts were extremely rare, both in Europe and the Americas.

The policy study assesses the possible scope and the technical and legal difficulties in implementing a "permanent Next-Generation EU (NGEU)", a central fiscal capacity for the EU, without ever losing sight of the democratic requirement. The implementation of NGEU has raised coordination issues between the member states as to the allocation of funds across structural priorities (e.g. ecological transition vs digitalisation) and across countries. To these coordination difficulties, Section 2 adds the issue of the democratic legitimacy of EU policies when supranational priorities constrain the autonomy of national parliaments. The problem of accountability is not new when one thinks that supranational rules, such as the Stability and Growth Pact, impose limits on the power of parliaments to "tax and spend"; in fact, the intrinsic logic of coordination is to force (political) discretionary power to comply with (macroeconomic) functional imperatives; this inevitably produces a form of depoliticisation of fiscal policy. Throughout this policy study, we constantly keep in mind that transforming NGEU into a permanent programme offers an opportunity to fix this depoliticisation of EU policies and open a window for a breakthrough to a "political Europe".

The policy study assesses the possible scope and the technical and legal difficulties in implementing a "permanent Next-Generation EU (NGEU)", a central fiscal capacity for the EU, without ever losing sight of the democratic requirement. The implementation of NGEU has raised coordination issues between the member states as to the allocation of funds across structural priorities (e.g. ecological transition vs digitalisation) and across countries. To these coordination difficulties, Section 2 adds the issue of the democratic legitimacy of EU policies when supranational priorities constrain the autonomy of national parliaments. The problem of accountability is not new when one thinks that supranational rules, such as the Stability and Growth Pact, impose limits on the power of parliaments to "tax and spend"; in fact, the intrinsic logic of coordination is to force (political) discretionary power to comply with (macroeconomic) functional imperatives; this inevitably produces a form of depoliticisation of fiscal policy. Throughout this policy study, we constantly keep in mind that transforming NGEU into a permanent programme offers an opportunity to fix this depoliticisation of EU policies and open a window for a breakthrough to a "political Europe".

The policy study assesses the possible scope and the technical and legal difficulties in implementing a "permanent Next-Generation EU (NGEU)", a central fiscal capacity for the EU, without ever losing sight of the democratic requirement. The implementation of NGEU has raised coordination issues between the member states as to the allocation of funds across structural priorities (e.g. ecological transition vs digitalisation) and across countries. To these coordination difficulties, Section 2 adds the issue of the democratic legitimacy of EU policies when supranational priorities constrain the autonomy of national parliaments. The problem of accountability is not new when one thinks that supranational rules, such as the Stability and Growth Pact, impose limits on the power of parliaments to "tax and spend"; in fact, the intrinsic logic of coordination is to force (political) discretionary power to comply with (macroeconomic) functional imperatives; this inevitably produces a form of depoliticisation of fiscal policy. Throughout this policy study, we constantly keep in mind that transforming NGEU into a permanent programme offers an opportunity to fix this depoliticisation of EU policies and open a window for a breakthrough to a "political Europe".

Low tax revenues in many African countries are hindering sustained economic development and aid could have an inhibiting effect on the development of fiscal capacity. This paper will use newly published high-quality data on tax revenues to dive deeper into the effects of aid on hard-to-collect taxes in Africa between 1960-2015. Previous aid literature has mostly focused on short-term effects on revenue collection but by looking at fiscal capacity this paper is able to contribute to the literature on the effects of aid and its components on more long-term institutional development. Using a fixed effects panel regression model, the results of the analysis show that aid has an overall positive effect on a country’s fiscal capacity. The results provide further evidence on the larger positive effects of loans on fiscal capacity compared to grants. Furthermore, the paper presents weak evidence of improvements in the effects of aid on fiscal capacity. The paper argues that aid has not created dependencies in Africa by undermining fiscal capacity development.

Fiscal capacity is regularly linked to warfare and democratization. However, the majority of income taxes - a cornerstone of government finance - were introduced by non-democratic states in peacetime. This paper is concerned with how autocratic politics shape the adoption and expansion of income taxes. Political institutions help overcome a commitment problem related to investments in taxation. To avoid being deposed by his or her elite supporters, a ruler needs to guarantee that new taxes will not be used opportunistically (e.g. expropriating the elite). If the elite supporters can effectively monitor the government, any transgressions will be detected and punishable. Institutions such as legislatures solve this commitment problem when they allow oversight and monitoring over the executive branch. The empirical implications are straightforward: in places with strong institutional oversight, which allows the elite to monitor the executive, we should observe higher fiscal capacity. I find support for this by analyzing newly available historical datasets over tax revenues, tax introduction dates, and political institutions.

Fiscal capacity is regularly linked to warfare and democratization. However, the majority of income taxes - a cornerstone of government finance - were introduced by non-democratic states in peacetime. This paper is concerned with how autocratic politics shape the adoption and expansion of income taxes. Political institutions help overcome a commitment problem related to investments in taxation. To avoid being deposed by his or her elite supporters, a ruler needs to guarantee that new taxes will not be used opportunistically (e.g. expropriating the elite). If the elite supporters can effectively monitor the government, any transgressions will be detected and punishable. Institutions such as legislatures solve this commitment problem when they allow oversight and monitoring over the executive branch. The empirical implications are straightforward: in places with strong institutional oversight, which allows the elite to monitor the executive, we should observe higher fiscal capacity. I find support for this by analyzing newly available historical datasets over tax revenues, tax introduction dates, and political institutions.

The chapter analyses the link between political institutions and the adoption of income taxes. The main claim is that this link differs across different types of income tax. The personal income tax represents primarily an investment in fiscal capacity. Hence, its introduction depends crucially on political institutions that constrain executive power. The corporate income tax, by contrast, falls more heavily on the rich. As a consequence, its adoption depends critically on democratic institutions that allow for broad political participation. The chapter explores these predictions for a global sample of countries. The results support the contention that executive constraints facilitate personal income tax adoption, while corporate income taxes are more likely to be adopted by cou© Oxford University Press 2022. All rights reserved.

We study the stabilization properties and welfare implications of a fiscal capacity in a New Keynesian model for a monetary union. A novel feature of the model is that access to the fiscal capacity is conditional on a country's public debt accumulation being sufficiently low. Likewise, the national fiscal effort to stabilize debt is more ambitious at higher debt levels. We show that the fiscal capacity reduces union-wide macroeconomic variability and raises union-wide welfare by reducing the incidence of regimes with large (pro-cyclical) fiscal consolidations. Welfare gains are higher under greater trade openness and price stickiness.

The chapter analyses the link between political institutions and the adoption of income taxes. The main claim is that this link differs across different types of income tax. The personal income tax represents primarily an investment in fiscal capacity. Hence, its introduction depends crucially on political institutions that constrain executive power. The corporate income tax, by contrast, falls more heavily on the rich. As a consequence, its adoption depends critically on democratic institutions that allow for broad political participation. The chapter explores these predictions for a global sample of countries. The results support the contention that executive constraints facilitate personal income tax adoption, while corporate income taxes are more likely to be adopted by countries with broad suffrage rights., The chapter analyses the link between political institutions and the adoption of income taxes. The main claim is that this link differs across different types of income tax. The personal income tax represents primarily an investment in fiscal capacity. Hence, its introduction depends crucially on political institutions that constrain executive power. The corporate income tax, by contrast, falls more heavily on the rich. As a consequence, its adoption depends critically on democratic institutions that allow for broad political participation. The chapter explores these predictions for a global sample of countries. The results support the contention that executive constraints facilitate personal income tax adoption, while corporate income taxes are more likely to be adopted by countries with broad suffrage rights.

This dissertation involves three essays on state capacity. The first essay presents a formal model of state building as a domestic bargaining game between local elite and central ruler to explore the relationship between warfare and fiscal centralization. In this study, I show that the central ruler’s future expectations are a key determinant of the chosen method of fiscal expansion under war pressure. Fiscal decentralization, rather than fiscal centralization, is more likely when wars create a high survival threat for the ruler. The Ottoman Empire in the nineteenth century is used as a case study to demonstrate the results of the model. The second essay analyzes the historical determinants of state capacity by looking at the interactions between early statehood and the colonial period experiences. Using ordinary least squares and instrumental variables regressions on a cross-country dataset of colonized and non-colonized countries, I find that the impact of early (pre-1500) statehood on current state capacity is conditional on colonization. Early statehood is positively associated with state capacity for non-colonized countries while it is negatively associated with state capacity for colonized countries. The final essay analyzes the relationship between bureaucratic quality, democracy and trade liberalization. In this essay, I argue that bureaucratic quality shapes the effect of democracy on trade liberalization because bureaucrats play an active role in the trade policymaking process when bureaucratic quality is high. Using panel data, I find evidence in line with existing arguments that democracy is positively correlated with trade liberalization. However, this effect only exists in countries with low levels of bureaucratic quality. When bureaucratic quality is high, the relationship between the level of democracy and trade liberalization weakens.

This paper argues that, on the development of European Union (EU)/Eurozone fiscal capacity German governments have consistently engaged in foot-dragging. Few German state elites have ever supported European fiscal capacity building beyond the EC budget. Following the outbreak of the Eurozone sovereign debt crisis, German governments agreed to the creation of financial support mechanisms only with reluctance. We see a case of continuity in German policy preferences driven by consistent ordoliberal and, specifically, moral hazard concerns. The important longterm change that we can observe relates to the growing importance for successive governments of avoiding audience costs driven by sceptical public opinion and the rise of a challenger party in German politics. German government support for a massive EU fiscal response to the economic crisis triggered by the COVID-19 pandemic demonstrates an exceptional policy position in favour of temporary financial mechanisms involving no fiscal transfers among member state governments.

This dissertation involves three essays on state capacity. The first essay presents a formal model of state building as a domestic bargaining game between local elite and central ruler to explore the relationship between warfare and fiscal centralization. In this study, I show that the central ruler’s future expectations are a key determinant of the chosen method of fiscal expansion under war pressure. Fiscal decentralization, rather than fiscal centralization, is more likely when wars create a high survival threat for the ruler. The Ottoman Empire in the nineteenth century is used as a case study to demonstrate the results of the model. The second essay analyzes the historical determinants of state capacity by looking at the interactions between early statehood and the colonial period experiences. Using ordinary least squares and instrumental variables regressions on a cross-country dataset of colonized and non-colonized countries, I find that the impact of early (pre-1500) statehood on current state capacity is conditional on colonization. Early statehood is positively associated with state capacity for non-colonized countries while it is negatively associated with state capacity for colonized countries. The final essay analyzes the relationship between bureaucratic quality, democracy and trade liberalization. In this essay, I argue that bureaucratic quality shapes the effect of democracy on trade liberalization because bureaucrats play an active role in the trade policymaking process when bureaucratic quality is high. Using panel data, I find evidence in line with existing arguments that democracy is positively correlated with trade liberalization. However, this effect only exists in countries with low levels of bureaucratic quality. When bureaucratic quality is high, the relationship between the level of democracy and trade liberalization weakens.

This paper argues that, on the development of European Union (EU)/Eurozone fiscal capacity German governments have consistently engaged in foot-dragging. Few German state elites have ever supported European fiscal capacity building beyond the EC budget. Following the outbreak of the Eurozone sovereign debt crisis, German governments agreed to the creation of financial support mechanisms only with reluctance. We see a case of continuity in German policy preferences driven by consistent ordoliberal and, specifically, moral hazard concerns. The important longterm change that we can observe relates to the growing importance for successive governments of avoiding audience costs driven by sceptical public opinion and the rise of a challenger party in German politics. German government support for a massive EU fiscal response to the economic crisis triggered by the COVID-19 pandemic demonstrates an exceptional policy position in favour of temporary financial mechanisms involving no fiscal transfers among member state governments.

The purpose of this paper is to gauge the various determinants of social sector spending captured by social protection and education spending in a cross section of developing countries, a subject on which there is scant empirical evidence. We hypothesize that fiscal capacity is necessary but not sufficient for resource allocation in this area, because the political will to do so must also be present. Using a panel data instrumental variable approach, we find that greater fiscal capacity robustly raises social spending in developing countries in the period 1990 to 2010. It is also strongly evident that rising democratisation enhances social sector spending; the presence of greater democracy and higher fiscal capacity could reinforce this effect. Our work also innovatively incorporates inequality into the analysis, finding that social expenditure is greater in more egalitarian societies. Military expenditure also appears to crowd out social protection expenditure, but not robustly

The successful implementation of NDCs will require specific efforts agreed among various actors including the ministries of finance and of planning to integrate climate and sustainable development into the national public planning, decision-making, and administrative processes. Public expenditure plays a key role in this task, since it represents one of the main official tools that governments use to finance the public policy responses to climate change. Therefore, it is a pillar for any financing strategy of NDCs and reflects the public investment priorities so it contributes to create a favorable environment to increase financing from the private sector and thus facilitate access to international climate finance. However, there is no clear evidence with respect to whether the ministries of finance of the region systematically envisage considerations on climate change when allocating the public budget, or how these considerations could be included in the future to make public policy decisions aimed at improving the efficiency, effectiveness and quality of public expenditure. In this study, a practical exercise was conducted and the national budgets in five countries of Latin America and the Caribbean (Argentina, Colombia, Jamaica, Mexico and Peru) were reviewed in order to identify gaps, best practices and/or factors within budget processes which allow or hinder the inclusion of climate change components. Budgetary allocations were also analyzed in key sectors included in the NDCs (energy, transport, agriculture, natural resources and environment, and disaster risk management) to analyze the level of expenditure in activities that may help fight climate change or that may otherwise increase GHG emissions.

The aim of this paper is to assess the budgetary and distributional effects of tax policy reforms in five Andean countries: Bolivia, Colombia, Ecuador, Peru and Venezuela. The analysis makes use of harmonized multi-country tax-benefit microsimulation models to allow cross-country comparability and to assess the effect of exporting income tax policies across countries. More precisely, we perform three counterfactual simulations, whereby the personal income tax system of Uruguay, Spain and Italy are applied to each of our five Andean countries in order to assess their effect on government revenue and income redistribution with respect to the national systems. Based on this benchmarking exercise, we explore potential pathways to reform specific components of personal income tax to increase fiscal capacity in the Andean region. Our results show important gains in fiscal capacity and inequality reduction under the three policy swap scenarios; however, given the static nature of our framework, we cannot rule out potential effects on formal work incentives in the medium term. Abolishing deductions from national personal income tax systems in Andean countries would have a smaller but positive effect on tax revenue but could represent the first step towards more sustainable and equitable fiscal policies in the region.

This paper uses a global dataset with information about 210,000 corporations in 142 countries to investigate whether tax avoidance by multinational firms is more prevalent in less-developed countries. The paper proposes a novel approach to studying cross-border profit shifting, which has relatively low data requirements and is therefore particularly well-suited for the context of developing countries. The results consistently show that the sensitivity of reported profits to profit-shifting incentives is negatively related to the level of economic and institutional development. This may explain why many developing countries opt for low corporate tax rates in spite of urgent revenue needs and severe constraints on the use of other tax bases.

Why do large differences in fiscal capacity exist between states in the Global South? We constructa comprehensive new dataset of tax and revenue collection for 46 African polities from 1900 to2015. Descriptive analyses show that many polities in Africa have been characterized by stronggrowth in real tax collection. As a next step, we employ these data to test theories of fiscal capac-ity in a long-run panel setting, using fixed-effects and causal estimation techniques. The resultsshow democratic institutions and interstate warfare can increase fiscal capacity, while governmentturnover reduces it. However, these factors are conditional on the availability of debt financingand external aid, which by themselves reduce incentives to invest in fiscal capacity. Leveragingnew data on exogenous movements in commodity prices, we show that resource income does notgenerally lead to lower capacity. These insights add important nuance to established theories ofstate-building.

This paper uses a global dataset with information about 210,000 corporations in 142 countries to investigate whether tax avoidance by multinational firms is more prevalent in less-developed countries. The paper proposes a novel approach to studying cross-border profit shifting, which has relatively low data requirements and is therefore particularly well-suited for the context of developing countries. The results consistently show that the sensitivity of reported profits to profit-shifting incentives is negatively related to the level of economic and institutional development. This may explain why many developing countries opt for low corporate tax rates in spite of urgent revenue needs and severe constraints on the use of other tax bases.

We argue that wars over natural resources, even if they are limited in their military scope, can have long-term consequences on the level and composition of public revenues. Military success in a resource war may lead to the annexation of natural resource-rich areas from enemy combatants, which provides the winning coalition with valuable and easy-to-tax sources of income. This, however, might discourage new investments in administrative capacity that jeopardize the possibility to establish complex and politically costly taxes in the long-term. This was the case in Chile after it took over the Bolivian and Peruvian coastal regions during the War of the Pacific (1879-1883). In Peru, by contrast, the loss of its nitrate-rich areas brought its fiscal system to the brink of collapse. The impact of the conflict on the Bolivian fiscal system was milder owing to its initial low level of state capacity to control these coastal regions.

The Russian Federation has a high degree of the socio-economic differentiation among its regions, which objectively requires large-scale redistribution of funds between them. Intergovernmental transfers are one of the main tools of this redistribution. Other things being equal, an increase in transfers to the region leads to an increase in the unpaid goods' consumption by its residents, which ultimately affects their welfare. Moreover, these changes stimulate interregional migration. Therefore, the resulting change in welfare depends on multiple economic forces. Based on a computable model of general equilibrium with two regions, I assessed the effects of intergovernmental transfers for the Khabarovsk Krai' economy. The specific feature of the model is the behaviour of regional governments, which optimize the regional tax rate and budget expenditures in a non-cooperative game to maximize the utility function of resident households. The latter are completely mobile between regions and consume two types of goods, private and state-provided ones, under given budgetary restrictions. I carried out simulation estimations for two scenarios differing in motivation incentives of households to change their residency. Calculations have shown that a sharp increase (more than twofold) in the federal budget grants may lead to a significant inflow of labour resources to the recipient region, but changes in welfare, wages and per capita household consumption will be minor. The reason is the behaviour of the regional governments, balancing the households' consumer basket by changing the volume of local government spending. Ultimately, the actions of regional authorities seeking to maximize the residents' welfare will result in such changes in tax revenues, which will compensate the increase in households' consumption of the state-provided goods by the decrease in funding of the same goods from the regional budget. © 2019 Institute of Economics, Ural Branch of the Russian Academy of, Рассмотрены межбюджетные трансферты. Дана общая характеристика бюджетного федерализма. Представлена динамика структуры доходов и расходов консолидированного бюджета Хабаровского края. Приведено описание и формализация модели общего равновесия с двумя регионами.

Th e article it is noted that budget decentralization is one of the basic preconditions for the independent and eff ective activity of local authorities in the management of the territory, the ability to provide high quality and aff ordable services to the population. Th e presence of signifi cant volumes of intergovernmental transfers testifi es to the presence of unresolved problems in the modern system of intergovernmental fi scal relations. Analyzes thefunctioning of intergovernmental transfers in the context of the implementation of decentralization of power and budgetary decentralization reforms. Th e high centralization of budget resources is determined. Th e eff ectiveness of transfer of part of delegated authority to local authorities and increase of tax revenues to local budgets are highlighted. It is noted that the real autonomy of local budgets is not achieved. Th e features of the structure of local budget revenues are revealed. Th e largest fi scal signifi cance belongs to the personal income tax. Signifi cant dependence of local budgets on transfers from the state budget is established. Th e system of horizontal alignment of local budgets’ fi scal capacity does not reduce the signifi cant diff erences in the revenue capacity of local budgets. Th e alignment mechanism is imperfect and requires the introduction of a median-based mechanism that will ensure a real balance of local budgets. Th e imperfection and incompleteness of normative-legal provision of management of intergovernmental transfers are established. Th ere is no clear and mutually exclusive list of own and delegated bodies of executive power to local self-government authorities in the branches of the budget sphere. Th ere is no diff erentiation of expenditures for the fulfi llment of the powers of local self-government bodies and their delegated state. Th e article substantiates the need for further reform of transfers between the state budget and local budgets of Ukraine., Проанализировано функционирование межбюджетных трансфертов в контексте реализации реформ децентрализации власти и бюджетной децентрализации. Освещено результативность передачи части делегированных полномочий местным органам власти и увеличение налоговых поступлений в местные бюджеты. Раскрыты особенности структуры доходов местных бюджетов и установлено значительную их зависимость от трансфертов государственного бюджета. Отмечено, что система горизонтального выравнивания налогоспособности местных бюджетов не обеспечивает сокращение значительных различий в доходной способности местных бюджетов, механизм выравнивания является несовершенным и требует введения механизма не по среднеукраинскому значению, а по медианному, что обеспечит реальную сбалансированность местных бюджетов. Установлено несовершенство и неполноту нормативно-правового обеспечения управления межбюджетных трансфертов, в частности отсутствие четкого и взаимоисключающего перечня собственных и делегированных органами исполнительной власти органам местного самоуправления полномочий по отраслям бюджетной сферы и разграничения расходов на выполнение собственных полномочий органов местного самоуправления и делегированных им государством. Обоснована необходимость дальнейшей реформы трансфертов между государственным бюджетом и местными бюджетами Украины., Проаналізовано функціонування міжбюджетних трансфертів у контексті реалізації реформ децентралізації влади і бюджетної децентралізації. Висвітлено результативність передання частини делегованих повноважень місцевим органам влади і збільшення податкових надходжень до місцевих бюджетів. Розкрито особливості структури доходів місцевих бюджетів і встановлено значну їхню залежність від трансфертів державного бюджету. Зазначено, що система горизонтального вирівнювання податкоспроможності місцевих бюджетів не забезпечує скорочення значних відмінностей у дохідній спроможності місцевих бюджетів, механізм вирівнювання є недосконалим і вимагає запровадження механізму не за середньоукраїнським значенням, а за медіанним, що забезпечить реальну збалансованість місцевих бюджетів. Установлено недосконалість і неповноту нормативно-правового забезпечення управління міжбюджетними трансфертами, зокрема відсутність чіткого і взаємовиключного переліку власних і делегованих органами виконавчої влади органам місцевого самоврядування повноважень за галузями бюджетної сфери та розмежування видатків на виконання власних повноважень органів місцевого самоврядування і делегованих їм державою. Обґрунтовано потребу подальшої реформи трансфертів між державним бюджетом і місцевими бюджетами України.

Do voters punish governments that introduce fiscal “austerity” measures? If so, does voter response vary according to the design (composition) of fiscal adjustments? What determines the timing of fiscal consolidations? The empirical literature on the political economy of fiscal adjustments, mostly OECD-based, argues that consolidations do not have significant electoral consequences. This paper re-examines these questions and finds that voters punish fiscal consolidations at the polls in Latin America and the Caribbean (LAC). To explain this result, we focus on the composition and timing of fiscal adjustments episodes. Such episodes rely fundamentally on increasing tax rates and bases of indirect taxes (such as the VAT) that hit broad segments of the population. Moreover, these policies are often implemented when politicians have no choice but to consolidate, that is, under severe economic circumstances. These macro results are corroborated with micro evidence from an original survey experiment that measures voter’s fiscal policy preferences over the business cycle in seven countries across Latin America. The experimental evidence shows that respondents prefer expenditure cuts to tax increases during recessions. This begs the question—if tax increases are more electorally costly, why do governments rely on them? It is argued the policy choice set available to pursue fiscal consolidation is relatively narrow in LAC, suggesting that investments in fiscal capacity are needed to expand the policy toolset of governments in the face of negative shocks.

The Great Depression, and the interwar period more generally, were characterized by macroeconomic mismanagement. Fiscal policy, in particular, was essentially not used to fight the slump. Despite this, I find that a higher degree of fiscal capacity helped countries reduce the cyclical volatility of their governments' financing and, thus, to run stabilizing - or, at least, less destabilizing - fiscal policies. This smoothing effect worked principally by facilitating countries' access to borrowing. Thus, interwar governments were constrained in their policy choices by past investments in their fiscal systems, and not just Gold Standard membership and ideology, as commonly held in the literature.

The Great Depression, and the interwar period more generally, were characterized by macroeconomic mismanagement. Fiscal policy, in particular, was essentially not used to fight the slump. Despite this, I find that a higher degree of fiscal capacity helped countries reduce the cyclical volatility of their governments' financing and, thus, to run stabilizing - or, at least, less destabilizing - fiscal policies. This smoothing effect worked principally by facilitating countries' access to borrowing. Thus, interwar governments were constrained in their policy choices by past investments in their fiscal systems, and not just Gold Standard membership and ideology, as commonly held in the literature.

В данной статье рассмотрено положение бюджета субъекта Российской Федерации в бюджетной системе страны и выявлены основные проблемы слабой бюджетной обеспеченности региона. В настоящей работе анализируются доходы и расходы бюджета Самарской области за 2015–2016 гг., The article considers the standing order of the budget of the constituent territory in the Russian Federation in the budget system of the country and reveals the main problem of low fiscal capacity of the region. It also analyzes the revenues and expenditures of the Samara region budget for 2015–2016.

В данной статье рассмотрено положение бюджета субъекта Российской Федерации в бюджетной системе страны и выявлены основные проблемы слабой бюджетной обеспеченности региона. В настоящей работе анализируются доходы и расходы бюджета Самарской области за 2015–2016 гг., The article considers the standing order of the budget of the constituent territory in the Russian Federation in the budget system of the country and reveals the main problem of low fiscal capacity of the region. It also analyzes the revenues and expenditures of the Samara region budget for 2015–2016.

В данной статье рассмотрено положение бюджета субъекта Российской Федерации в бюджетной системе страны и выявлены основные проблемы слабой бюджетной обеспеченности региона. В настоящей работе анализируются доходы и расходы бюджета Самарской области за 2015–2016 гг., The article considers the standing order of the budget of the constituent territory in the Russian Federation in the budget system of the country and reveals the main problem of low fiscal capacity of the region. It also analyzes the revenues and expenditures of the Samara region budget for 2015–2016.

The purpose of the study was to determine whether or not a variance in the quality of the public high school facilities existed among the Commonwealth of Virginia school divisions, since the 1982 Peccia study, An Analysis Of The Financing Of Public High School Capital Facilities In Virginia. Reasons for the variance in the quality of the public high school facilities, if any, were determined from an examination of a capital facilities survey instrument and various economic and financial characteristics. Methods and procedures used in the study included the capital facilities survey instrument, Crossman CAFIS. The Crossman CAFIS accurately reflected not just the number of facilities that existed in the school divisions but the quality of each facility. The researcher sent an electronic survey instrument to each high school principal within the sampled school divisions to rate their facilities using 75 indicators. The researcher visited all the high schools within the study in order to ensure the variance in how one perceives the differences in facilities would be limited. Any variance in the quality of the public high school facilities among the sampled school divisions were examined for economic factors that include; local composite index, fiscal effort and fiscal capacity. A significant finding of the study was that a large variance existed between the quality of high school facilities within the sampled school divisions, as measured by Crossman CAFIS. Reasons for that variance can be partially attributed to the fiscal effort of the sampled school divisions. School divisions that made a large fiscal effort and had a large fiscal capacity scored high on the Crossman CAFIS. School divisions that made a low fiscal effort and had low fiscal capacity, also scored low on the Crossman CAFIS. The lowest quality of high school facilities were found to be in the Western region of Virginia, despite isolated instances of high fiscal effort by some school divisions. Implication

This research aims to analyse the degree of fiscal dependence of local government upon the central government in the regency of Mimika, one of Indonesia’s eastern regencies. The ratio of fiscal decentralization is used to calculate the local government’s ability to increase its regional revenue in order to support development initiatives in all sectors (Malmudi, 2010). Secondary data of locally-generated revenue and total revenue from the period 2010-2015 are used to measure the degree of fiscal decentralization. The results show that the degree of fiscal decentralization in the regency remained at a low level, reflected from the average value of 12.92 percent with the highest degree, of 25.09 percent in 2012. An analysis of fiscal decentralization in the period 2010 – 2015, indicates that the regency lacked sufficient fiscal capacity, showing heavy dependence upon financing from the central government. The local government is expected to develop the region’s potentiality through creative efforts within their governmental apparatus to increase local revenues. The funds from the central government could provide a positive contribution if used in the consumption of goods and services that potentially support economic activities.

This research aims to analyse the degree of fiscal dependence of local government upon the central government in the regency of Mimika, one of Indonesia’s eastern regencies. The ratio of fiscal decentralization is used to calculate the local government’s ability to increase its regional revenue in order to support development initiatives in all sectors (Malmudi, 2010). Secondary data of locally-generated revenue and total revenue from the period 2010-2015 are used to measure the degree of fiscal decentralization. The results show that the degree of fiscal decentralization in the regency remained at a low level, reflected from the average value of 12.92 percent with the highest degree, of 25.09 percent in 2012. An analysis of fiscal decentralization in the period 2010 – 2015, indicates that the regency lacked sufficient fiscal capacity, showing heavy dependence upon financing from the central government. The local government is expected to develop the region’s potentiality through creative efforts within their governmental apparatus to increase local revenues. The funds from the central government could provide a positive contribution if used in the consumption of goods and services that potentially support economic activities.

Les pays riches en ressources naturelles ne sont pas nécessairement les plus prospères. Le fait que la richesse en ressources naturelles puisse conduire à l'appauvrissement est connu sous le nom de «malédiction des ressources naturelles». Ce constat continue d'être l'objet de plusieurs discussions et recherches scientifiques en économie. Cette thèse s'inscrit dans ce champ de recherche. Notre thèse poursuit deux grands objectifs. Le premier consiste à explorer la manifestation de la malédiction des «ressources naturelles» dans le contexte des finances publiques. Quant au deuxième objectif, il s'agit de proposer un nouveau mécanisme et donc une nouvelle explication de la «malédiction des ressources naturelles». Par ailleurs, la méthodologie utilisée dans cette thèse combine une approche empirique (utilisation des données) avec une modélisation théorique. En ce qui concerne le premier objectif, celui d'explorer la manifestation du phénomène en matière des finances publiques, deux composantes sont considérées : la politique fiscale d'une part et les dépenses publiques d'autre part. Dans la poursuite de cet objectif, nous examinons aussi le rôle potentiel de certaines politiques pour atténuer le phénomème observé. Ainsi, quant aux politiques fiscales, les principaux résultats se résument comme suit : les chocs positifs de revenus tirés des ressources naturelles tendent à réduire l'effort de collecte des recettes fiscales. Toutefois, cette constatation nommée la «malédiction des revenus» est atténuée par une fiscalité progressive. Ensuite, en ce qui concerne les dépenses publiques, la richesse en ressources naturelles tend à exacerber le comportement d'accroissement des dépenses publiques en période électorale. Par ailleurs, alors que des institutions budgétaires visant à limiter les excès en matière budgétaire sont efficaces pour limiter ces dépenses en général, il ne semble pas qu'elles puissent l'être dans le contexte de pays riches en ressources naturelles. En poursu, This thesis investigates the consequences of windfall revenues in developing countries with a specific focus on the linkages with public finance and political economy. First, I consider two different but closely related aspects of public finance which are taxation and public spending. Regarding the political economy side, I analyze how resource windfall shocks can affect political selection. Chapter 1 investigates the causal effect of natural resource rent windfalls on tax revenue collection effort in developing countries both with theory and data. The dependency on natural resources is an obstacle to the sustainability of government revenues especially in developing countries. This paper firstly investigates whether resource windfall shocks cause less tax effort in developing countries. Second, it explores the potential mitigating role of the progressivity of the tax system. In this regard, a dynamic framework predicts that a resource-rich country with a progressive income tax has more incentives to invest in its ability to raise tax revenues. The intuition is that the progressive tax system allows the government to collect more taxes (especially on high incomes). My empirical analysis covers a sample of 57 developing countries over the period 1981-2005. I tackle the endogeneity of natural resources rents by using an instrumental variable approach. I construct a countryspecific natural resource price index and exploit its growth rate as an instrument. The results show that an increase in resource rent windfalls of $1 leads to a reduction in domestic tax revenues by $0.25. My point estimate is remarkably close to the estimate found in a previous work based on the United States. Yet, at a level of progressivity equivalent to twice the sample average, an increase in resource rent windfalls of $1 reduces domestic tax revenues by only $0.14. These findings suggest that income tax reforms toward progressivity may help resource-rich developing countries enhance

The modern financial situation demonstrates tough asymmetry in financial development between the territorial units, which are the capital cities, and the «second» cities of constituent units of the Russian Federation. This is based upon chronic deficit of inner financial sources for covering the budget expenditure items of the latter ones. The instruments of municipal units’ fiscal capacity level equalization, which are being implemented by the national government, lead to adverse effects. These effects of national fiscal practice include the resource dependence on the upper level and lack of interest of the «vice-capitals’» local authorities to broaden the inner income base, disbalance between economic, social, natural-resource components of urban environment’s sustainable development and the fall of the residents’ quality of living. In this connection, the effectiveness research of the current managerial mechanism of fiscal capacity of the «second» cities of constituent units of the Russian Federation in the context of the sustainable development concept is extremely important. The results of the survey on the packaged approach to economical and statistical assessment of the fiscal capacity level as a defining factor of sustainable development of the urban environment and the residents’ quality of living in «vice-capitals» of constituent units of the Russian Federation (the case of Magnitogorsk and Nizhniy Tagil) are presented in this article. Having used the packaged approach, the authors have brought to light the interconnection between the level of the «second» cities’ fiscal capacity and indicator values of ecological and socio-economic well-being of the analysed area. Additionally, they have revealed the character and direction of this connection as well as assessed the competence of management of the financial opportunities generation and usage by means of determining the indicator values of the areas’ fiscal capacity as of the current date and comparing the

La reciente crisis económica y financiera que han sufrido los países europeos ha puesto de manifiesto la necesidad de impulsar un proceso de mayor integración en la UEM. El presente trabajo apuesta por la creación de un Presupuesto para los Estados miembros de la zona euro con funciones de estabilización macroeconómica financiando exclusivamente las políticas económicas anticíclicas de la zona euro, analizando la idónea base jurídica para su creación y los posibles recursos que lo financiarían., The recent economic and financial crisis in European countries has underscored the need to promote a deeper integration at EMU. This paper endorses the creation of a Budget for euro zone members linked to macroeconomic stability functions, financing exclusively countercyclical policies in euro zone. This paper also questions the most suitable legal basis and the resources needed for its funding.

Global governance in various forms has emerged as a salient means of setting and driving common development goals that are of interest to the world’s functioning at large. However, literature is divided on the attribution of achievements to the global social governance efforts. The experience of the Millennium Development Goals (MDGs) showed the importance of setting indicators at an early stage to support a sound monitoring system. If the world is to start implementing the Sustainable Development Goals (SDGs) in 2016, we cannot afford a lag of several years before putting monitoring tools in place and measuring progress towards achieving these goals. To answer the question on the level of resources required to fulfil the SDGs target by country and income category, five low and lower middle income countries were selected from Asia, Africa, and Latin America based on availability of data and their classification as low and lower‐middle income countries: Cambodia, El Salvador, Ethiopia, Indonesia, and Senegal. The required data for the assessment is sourced from the World Bank Development Indicators Databank (WDID). The estimation of the resource requirement to adhere to the poverty, health and education targets of the SDGs involves computing three indices for each dimension. For the income gap index, two poverty lines underlie the composite resource gap as percentage of the GDP to meet the SDGs targets on poverty. The education gap is constructed by normalising seven indices that either directly capture or proxy the governance and outcome targets on education in the SDGs. Thirdly, this research employed a three‐step approach in estimating the normative public health expenditure gap; the staff expenditure gap; and the resource allocation expenditure gap. To conclude, the viability of closing the cumulative resource gap is assessed in light of a country’s tax revenue.

La reciente crisis económica y financiera que han sufrido los países europeos ha puesto de manifiesto la necesidad de impulsar un proceso de mayor integración en la UEM. El presente trabajo apuesta por la creación de un Presupuesto para los Estados miembros de la zona euro con funciones de estabilización macroeconómica financiando exclusivamente las políticas económicas anticíclicas de la zona euro, analizando la idónea base jurídica para su creación y los posibles recursos que lo financiarían., The recent economic and financial crisis in European countries has underscored the need to promote a deeper integration at EMU. This paper endorses the creation of a Budget for euro zone members linked to macroeconomic stability functions, financing exclusively countercyclical policies in euro zone. This paper also questions the most suitable legal basis and the resources needed for its funding.

This study contributes to African state and fiscal history by presenting a detailed comparison of the evolution of fiscal capacity in four countries in francophone West Africa – Benin, Côte d'Ivoire, Niger and Senegal - over both the colonial and independent periods. While common patterns and persistence can be observed it is instead the unique fiscal pathways of the individual countries that stand out. These pathways can only be understood by analyzing how the underlying economic and political factors of each country develop over time. The importance of the colonial heritage in the development of fiscal capacity for individual countries should therefore not be overemphasized. 1 Introduction

У статті систематизовано та виокремлено наукові здобутки вітчизняних та зарубіжних учених щодо розуміння економічної сутності бюджетного потенціалу регіону. Визначено основні фактори, що на нього впливають. Обґрунтовано класифікацію бюджетного потенціалу регіону. Наведено основні підходи до трактування поняття «бюджетний потенціал регіону». Наведено власне, авторське, тлумачення даного терміну. This article investigates scientific approaches to understanding the nature of the budget potential. In particular, it was found that the financial basis of state authorities’ actions is the budgets of the areas and therefore sustainable development of local government area is determined by the amount of financial resources accumulated in the budget of the area – budget capacity. In examinations the scientific approaches to understanding the nature of budgetary potential of the region are generalized, the main factors that influence on it are defined, the classification of the budget potential is justified. In conclusion, we would like to say that fiscal potential of the region should be the basis of the planning budget revenues in the region, since the availability of information on the state of budget potential of the region forming will allow to concentrate an efforts on the most important areas of development of the region, to determine the reserves of funding, to ensure the effective control of the mobilization and use of funds.

This study contributes to African state and fiscal history by presenting a detailed comparison of the evolution of fiscal capacity in four countries in francophone West Africa – Benin, Côte d'Ivoire, Niger and Senegal - over both the colonial and independent periods. While common patterns and persistence can be observed it is instead the unique fiscal pathways of the individual countries that stand out. These pathways can only be understood by analyzing how the underlying economic and political factors of each country develop over time. The importance of the colonial heritage in the development of fiscal capacity for individual countries should therefore not be overemphasized. 1 Introduction

This working paper explores the challenges and opportunities of a possible euro area flexibility clause. Such a clause, if introduced through a limited revision of the current EU Treaties, could be used to partially respond to one of the institutional challenges exposed by the Eurozone crisis, namely that member states (permanently) outside the euro area can block change desired by the member states within the euro area. It would provide an alternative to a comprehensive treaty revision and to going outside the treaties by concluding additional intergovernmental treaties.

This working paper explores the challenges and opportunities of a possible euro area flexibility clause. Such a clause, if introduced through a limited revision of the current EU Treaties, could be used to partially respond to one of the institutional challenges exposed by the Eurozone crisis, namely that member states (permanently) outside the euro area can block change desired by the member states within the euro area. It would provide an alternative to a comprehensive treaty revision and to going outside the treaties by concluding additional intergovernmental treaties.

This working paper explores the challenges and opportunities of a possible euro area flexibility clause. Such a clause, if introduced through a limited revision of the current EU Treaties, could be used to partially respond to one of the institutional challenges exposed by the Eurozone crisis, namely that member states (permanently) outside the euro area can block change desired by the member states within the euro area. It would provide an alternative to a comprehensive treaty revision and to going outside the treaties by concluding additional intergovernmental treaties.

This working paper explores the challenges and opportunities of a possible euro area flexibility clause. Such a clause, if introduced through a limited revision of the current EU Treaties, could be used to partially respond to one of the institutional challenges exposed by the Eurozone crisis, namely that member states (permanently) outside the euro area can block change desired by the member states within the euro area. It would provide an alternative to a comprehensive treaty revision and to going outside the treaties by concluding additional intergovernmental treaties.

The central question in taxation and development is: “how does a government go from raising around 10% of GDP in taxes to raising around 40%?” This paper looks at the economic and political forces that shape the way that fiscal capacity is created and sustained. As well as reviewing the literature and evidence, it builds an overarching framework to help structure thinking on the topic., AuthorCount:2

Given the high dependence of local governments on federal transfers, and the lack of transparency of the distribution formulas, this paper conducts a review of the allocation formulas transfers to municipalities of Quintana Roo. Three alternatives to existing formulas are proposed: one based on redistributive criteria, another on efficiency of municipal governments, and finally an intermediate formula based on a mix of efficiency and redistributive criteria. These alternatives may be incorporated into the revenue laws of any state, depending on the level of municipal development and economic and social objectives of the government. In any case, these alternative formulas are transparent with a clear objective, Dada la alta dependencia de los gobiernos municipales respecto de las transferencias federales, así como la poca transparencia que suelen tener las fórmulas de distribución de éstas, el presente trabajo realiza una revisión de las ecuaciones de asignación de transferencias a los municipios del estado de Quintana Roo y se plantean tres alternativas: una basada en criterios redistributivos; otra, en criterios de eficiencia de los gobiernos municipales, y, finalmente, una fórmula intermedia que combina criterios de este tipo y de redistribución. Estas opciones pueden ser incorporadas a las leyes de ingresos de cualquier entidad federativa, dependiendo del nivel de desarrollo municipal y de los objetivos económicos y sociales del gobierno. En todo caso, son algoritmos propuestos que presentan transparencia y un objetivo claro a lograr.

Given the high dependence of local governments on federal transfers, and the lack of transparency of the distribution formulas, this paper conducts a review of the allocation formulas transfers to municipalities of Quintana Roo. Three alternatives to existing formulas are proposed: one based on redistributive criteria, another on efficiency of municipal governments, and finally an intermediate formula based on a mix of efficiency and redistributive criteria. These alternatives may be incorporated into the revenue laws of any state, depending on the level of municipal development and economic and social objectives of the government. In any case, these alternative formulas are transparent with a clear objective, Dada la alta dependencia de los gobiernos municipales respecto de las transferencias federales, así como la poca transparencia que suelen tener las fórmulas de distribución de éstas, el presente trabajo realiza una revisión de las ecuaciones de asignación de transferencias a los municipios del estado de Quintana Roo y se plantean tres alternativas: una basada en criterios redistributivos; otra, en criterios de eficiencia de los gobiernos municipales, y, finalmente, una fórmula intermedia que combina criterios de este tipo y de redistribución. Estas opciones pueden ser incorporadas a las leyes de ingresos de cualquier entidad federativa, dependiendo del nivel de desarrollo municipal y de los objetivos económicos y sociales del gobierno. En todo caso, son algoritmos propuestos que presentan transparencia y un objetivo claro a lograr.

Given the high dependence of local governments on federal transfers, and the lack of transparency of the distribution formulas, this paper conducts a review of the allocation formulas transfers to municipalities of Quintana Roo. Three alternatives to existing formulas are proposed: one based on redistributive criteria, another on efficiency of municipal governments, and finally an intermediate formula based on a mix of efficiency and redistributive criteria. These alternatives may be incorporated into the revenue laws of any state, depending on the level of municipal development and economic and social objectives of the government. In any case, these alternative formulas are transparent with a clear objective, Dada la alta dependencia de los gobiernos municipales respecto de las transferencias federales, así como la poca transparencia que suelen tener las fórmulas de distribución de éstas, el presente trabajo realiza una revisión de las ecuaciones de asignación de transferencias a los municipios del estado de Quintana Roo y se plantean tres alternativas: una basada en criterios redistributivos; otra, en criterios de eficiencia de los gobiernos municipales, y, finalmente, una fórmula intermedia que combina criterios de este tipo y de redistribución. Estas opciones pueden ser incorporadas a las leyes de ingresos de cualquier entidad federativa, dependiendo del nivel de desarrollo municipal y de los objetivos económicos y sociales del gobierno. En todo caso, son algoritmos propuestos que presentan transparencia y un objetivo claro a lograr.

Given the high dependence of local governments on federal transfers, and the lack of transparency of the distribution formulas, this paper conducts a review of the allocation formulas transfers to municipalities of Quintana Roo. Three alternatives to existing formulas are proposed: one based on redistributive criteria, another on efficiency of municipal governments, and finally an intermediate formula based on a mix of efficiency and redistributive criteria. These alternatives may be incorporated into the revenue laws of any state, depending on the level of municipal development and economic and social objectives of the government. In any case, these alternative formulas are transparent with a clear objective, Dada la alta dependencia de los gobiernos municipales respecto de las transferencias federales, así como la poca transparencia que suelen tener las fórmulas de distribución de éstas, el presente trabajo realiza una revisión de las ecuaciones de asignación de transferencias a los municipios del estado de Quintana Roo y se plantean tres alternativas: una basada en criterios redistributivos; otra, en criterios de eficiencia de los gobiernos municipales, y, finalmente, una fórmula intermedia que combina criterios de este tipo y de redistribución. Estas opciones pueden ser incorporadas a las leyes de ingresos de cualquier entidad federativa, dependiendo del nivel de desarrollo municipal y de los objetivos económicos y sociales del gobierno. En todo caso, son algoritmos propuestos que presentan transparencia y un objetivo claro a lograr.