Search

In the past two decades, the EU has experienced low fertility rates and declining mortality rates leading to population ageing. Although increasing immigration and longer life expectancy reinforced population growth, these trends could not counterbalance the negative impact of low birth rates on labour supply. Demographic transition towards an aging society is characterised by increase of public health and pension expenditures, as well as decrease of tax revenues that are triggers for fiscal imbalance. The paper aims to analyse the effects of population ageing on government fiscal balance in the EU-27 by applying modern methods of panel data analysis in the period 2001-2021. The dependent variable is general government fiscal balance, while the explanatory variables are related to demographic transition indicators (population aged over 64 in total population, old-age dependency ratio, and health expenditures) and macroeconomic control variables. The results of research show that population ageing has created a significant negative impact on fiscal balance of the EU countries, which was confirmed by all the analysed models. The fixed-effects panel threshold model did not identify a statistically significant threshold of any demographic transition indicator, concluding that population ageing has equally negatively affected fiscal balance, independent of the values of demographic transition indicators.

Copyright of Journal of Turkish Court of Accounts / Sayistay Dergisi is the property of Turkish Court of Accounts and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The study attempts to investigate the effects of globalisation on components of general government expenditures and domestic private investment in India during 1980–1981 to 2019–2020, by controlling their other crucial determinants. We observe a positive impact of FDI, per capita income and population growth on both government current and capital expenditures, while FRBM dummy has a strong favourable impact only on capital expenditure. This indicates significant influence of demand side factors on both components of government expenditure along with a favourable effect of fiscal discipline measures on capital expenditure. On exploring the effects of government capital spending and FDI on domestic private investment, we observe government capital spending has a negative effect, while FDI, revenue spending and fiscal discipline measures have positive effects. Thus, we conclude that in response to globalisation while general government in India is augmenting with both pro-efficient and welfare spending measures, its overall fiscal policy does not provide a strong stimulus to domestic private investment. [ABSTRACT FROM AUTHOR]

Access to credit has been a key component in protecting a country's agriculture sector against uncertainties and climate‐related shocks. Agricultural credits may also increase both agribusiness sectors' and farming‐related commercial activities' exposure to world markets. This study aims to investigate agricultural credits' short‐run and long‐run effects on agricultural production using control variables such as foreign direct investments, inflation rate, and government expenditures. We found that credits to agriculture affect value‐added agriculture positively in the long‐run; specifically, when agricultural credits increase by 1%, value‐added agriculture will increase by 0.19%; that is, an increase in credits to the agricultural sector leads to a significant increase in value‐added agriculture, while FDI and government size both reduce agricultural value‐added across countries. The findings of the pairwise causation test show that bidirectional causal links exist among almost all variables, validating feedback among agricultural value‐added, credit to agriculture, FDI, government expenditures, and inflation. [ABSTRACT FROM AUTHOR]

Objective: The COVID-19 pandemic severely contracted Iran's economy in 2019-2021. Mass vaccinations in Iran, which began in February 2021, gradually made expectations for the future optimistic and increased investment incentives. Considering the importance of this issue, the main goal of the present study is to understand the effect of shock to the marginal efficiency of investment on Iran's economy. Also, considering that since the great recession of 2007, the macroeconomic effects of government expenditures shocks have received more attention, one of the other goals of this study is to investigate the effects of government expenditures shocks and the crowding out effect in Iran's economy. In other words, since the scientific analysis of the effect of economic shocks on economic conditions is essential, the main goal of this article is to understand the effects of shocks on the marginal efficiency of investment and government expenditures on the dynamics of macroeconomic variables in Iran. Method: Dynamic Stochastic General Equilibrium (DSGE) modeling is a branch of macroeconomics that follows the principles of microeconomics and can optimally evaluate the performance of the economy in a stochastic environment. These models are a new version of general equilibrium that emerged following Lucas' criticism. Compared to the models based on time series, DSGE models can show detailed interactions between market decision makers in the framework of general equilibrium. On the other hand, most time series models are not based on economic theory and unlike DSGE models, they are not based on mathematical optimization. Also, unlike calculable general equilibrium models, DSGE models are in a stochastic environment, and since the duration of the shock and its effect on the economy is not known, it is more appropriate to use DSGE models. Considering that the shocks on the economy are stochastic, dynamic stochastic general equilibrium models can best evaluate the effects of these shocks. In this article, a dynamic stochastic general equilibrium model is presented and estimated using the Bayesian approach and seasonal data in the period of 2001:3-2021:3. The primary core of the current research is designed based on the study of Rohe (2012) and by expanding this model, the effect of shock to the marginal efficiency of investment on the dynamics of the macroeconomic variables of Iran has been investigated. In this regard, the studied DSGE model includes households with an unlimited planning horizon, a representative firm producing a homogeneous final product in a perfectly competitive environment, the government, and the oil sector. In order to estimate model indices, Bayesian method and Random Walk Metropolis-Hastings algorithm were used. The data of the observable variables of the model include seasonally adjusted data of Gross Domestic Production (GDP), private consumption, investment and government expenditure; which have been detrended using the Hodrick-Prescott filter. Results: The results indicate that the productivity shock caused an increase in the marginal efficiency of investment and production, and subsequently the hours of employment and investment increased; This caused the interest rate to increase. Due to the increase in household income, consumption increased. The response of the variables to productivity shocks and marginal efficiency of investment are very similar. The only difference is the response of consumption to the shock of the marginal efficiency of investment. As a result of this shock, consumption decreased due to the decrease in wage rates and household income. Also, the dependence of marginal efficiency of investment shocks and government expenditures led to an increase in government expenditures as a result of the marginal efficiency of investment shock. The shock of increasing government expenditures caused an increase in the real interest rate and a decrease in investment. Also, production and employment increased in response to this shock. Due to the significant decrease in the wage rate, consumption has decreased. Since the increase in government expenditures has led to a decrease in investment, the crowding out effect in Iran's economy is confirmed. Conclusion: Comparing the effects of shock to the marginal efficiency of investment and government spending shock on the dynamics of macroeconomic variables in Iran indicates that both shocks lead to an increase in output; but the government expenditures shock has led to the shrinking of the private sector in Iran. As a policy recommendation, it is suggested that the government should manage the political and economic environment of the country in a way so that the expectations of economic agents are formed as optimistically as possible. Also, considering the confirmation of the crowding out effect in Iran's economy, the government should prioritize the goal of reducing its size and expenses. [ABSTRACT FROM AUTHOR]

The strengthening of the role of fiscal policy in Kazakhstan in recent years has updated studies of the impact of its instruments on the economy. In this regard, the assessment of the fiscal multiplier is an important research task that has practical significance for increasing the effect of fiscal policy. The purpose of this article is to estimate the fiscal multiplier in Kazakhstan. The quarterly data for the period from 2000 to 2022 from the official statistical sources of information were used. For the specified time period, the authors made two distinct estimates of the fiscal multiplier of Kazakhstan’s public expenditures: with and without considering economic cycles. The comparison of the simulation results allowed the authors to note the shortcomings of the fiscal multiplier estimation without considering economic cycles. In the cycle-ignoring model, the lag of government spending shock was overestimated. Moreover, the fiscal multiplier without cycles turned out to be significant at the 10% significance level and amounted to only 0.2. The fiscal multiplier in the model with cycles during the recession period turned out to be significant at the 1% significance level and amounted to 0.44, and during the expansion period,, it turned out to be insignificant for any lag. Based on these results, the authors conclude that the theoretical importance of fiscal measures in a recession is confirmed for Kazakhstan. However, during a period of economic growth above the potential level, an additional positive shock of government spending will not lead to positive effects on the economic growth.

Abstract Access to credit has been a key component in protecting a country's agriculture sector against uncertainties and climate‐related shocks. Agricultural credits may also increase both agribusiness sectors' and farming‐related commercial activities' exposure to world markets. This study aims to investigate agricultural credits' short‐run and long‐run effects on agricultural production using control variables such as foreign direct investments, inflation rate, and government expenditures. We found that credits to agriculture affect value‐added agriculture positively in the long‐run; specifically, when agricultural credits increase by 1%, value‐added agriculture will increase by 0.19%; that is, an increase in credits to the agricultural sector leads to a significant increase in value‐added agriculture, while FDI and government size both reduce agricultural value‐added across countries. The findings of the pairwise causation test show that bidirectional causal links exist among almost all variables, validating feedback among agricultural value‐added, credit to agriculture, FDI, government expenditures, and inflation.

One of the most crucial elements for macroeconomics is the public sector. It is an important issue that is investigated by all countries whether public expenditures are effective or not. In the study, it is aimed to investigate the effects of public expenditures in the Turkish economy on unemployment rates for the period of 1980-2020. Within the scope of the research, unit root test based on Fourier functions is conducted to test the stationarity of the variables of public expenditures and unemployment rates. According to the Fourier KPSS unit root test, it is concluded that the variables of public expenditures and unemployment rate are not stationary at the level but are stationary in the first order. After determining that the trigonometric terms in the model are statistically significant, Tsong, Leei Tsai and Hu (2016) Fourier Cointegration test is applied to determine the relationships between the variables. According to the results of the study, it is determined that the increase and decrease in public expenditures and unemployment rates in Türkiye affect each other. The effect can be expressed as a 1 unit increase on unemployment rate, increases the public expenditures by 0.38 unit. [ABSTRACT FROM AUTHOR]

This paper augments a model developed for the government spending for a closed economy by introducing foreign loans, foreign reserves and exchange rates, which are of vital importance for budgeting in an open economy. It suggests that government expenditures are a function of taxes, domestic debt, foreign debt in domestic currency, foreign reserve in domestic currency, high-powered money, and real interest paid on domestic and foreign debt. All factors are found to have a positive impact on government expenditures in mathematical modelling, except for foreign reserves interest payments on domestic and foreign debt, which have a negative impact on the expenditures. The model is estimated by employing yearly data from 1976 to 2020 for Pakistan's economy and incorporating the impact of change in the exchange rate regime on government expenditures. The model, estimated with the Auto Regressive Distributed Lag (ARDL) model, suggests that current government expenditures depend on the current and previous period taxes, current domestic loans, current and earlier periods of foreign debt, current high-powered money, and foreign reserves. In addition, the empirical findings indicate that around 55 per cent of government expenditures have been financed through tax revenues, 21 per cent through high-powered money and 17 per cent through government bonds. The paper applies a dummy variable to measure the impact of the change in the exchange rate regime in 1999; it suggests that the change has positively impacted government expenditures. This paper concludes that the government has been preferring printing money and foreign loans, after taxes, for financing expenditures in Pakistan. At the policy level, the paper recommends that the government needs to rationalise the financing of its expenditures by focusing more on taxes. Further, it needs to avoid tapping foreign reserves held by the private sector. [ABSTRACT FROM AUTHOR]

This study analyses the influence of economic growth on inequality, concentrating on the role of governments as mediators. The period studied is from 2000 to 2020, encompassing 11 post-Soviet countries. The primary estimation method used is the two-stage least squares for panel data. Despite the differences in the economic and political systems at the current development stage, the post-Soviet countries share a common pattern in terms of the relationship between economic growth, the labour income share and the level of inequality, which we first show in this article. Government expenditure has the potential to reduce inequality. However, its effectiveness depends largely on government efficiency and the development of democratic institutions. Despite the increase in government spending on education, more is needed to reduce income inequality. Increased economic performance, productivity, and high-quality state institutions are necessary for this change. [ABSTRACT FROM AUTHOR]

Due to the constant expansion of China's industrial sector, environmental pollution has become a major issue that requires urgent and continuous government intervention. We use a panel of 239 Chinese cities for 2007 – 2019 and a system Generalized Method of Moments (GMM) model to estimate the impact of fiscal expenditures on industrial pollution levels. Our results suggest that local fiscal expenditures have a positive and significant impact on industrial wastewater generation, sulfur dioxide emissions, and smoke and dust pollution levels, as well as on pollution intensity. Conversely, expanding environmental protection initiatives helps significantly improve environmental quality. In addition, government expenditure on education has a negative and statistically significant influence on both industrial wastewater and smoke and dust pollution, while higher spending on research and development (R&D) helps curb sulfur dioxide emissions and pollution intensity. We also demonstrate that green financing initiatives can strengthen the negative relationship between education expenditure and R&D spending on the one hand and pollution level and its intensity on the other. Hence, our results offer suggestions for improving the composition of government expenditures and therefore better controlling pollution levels, which can be achieved by increasing investment in environmental protection, spending more on education and R&D, and promoting the spread of green financing initiatives. [ABSTRACT FROM AUTHOR]

Fiscal policy sustainability is key for medium to long-term growth of any economy. Maintaining fiscal sustainability aids to create enough fiscal space to mitigate economic shocks. The fiscal space in Kenya has been constrained by rising government expenditures, widening the fiscal deficit further. As such, concerns have arisen on the sustainability of fiscal policy in Kenya, motivating this study. Using Johansen cointegration technique and the two-step Engle-Granger approach the study assessed the sustainability of fiscal policy in Kenya. Empirical findings indicate that fiscal policy in Kenya is weakly sustainable. However, the economy adjusts fast in instances of disequilibrium caused by various shocks. To ensure fiscal sustainability in the long run, the study recommends a reduction in the share of salaries and wages which is the largest component of recurrent expenditures. Similarly, retiring short-term and expensive commercial debt by increasing the share of concessional loans in financing fiscal deficit is key. A review of the relevance and costs of multiple exemptions including those on Value Added Tax (VAT) and other incentive schemes such as deductibles and investment allowances under corporate tax to reduce revenue forgone is paramount. [ABSTRACT FROM AUTHOR]

This study examines the impact of government spending, income, and tourism consumption on CO2 emissions in the 50 US states through a novel theoretical model derived from the Armey Curve model and the Environmental Kuznets Curve hypothesis. The findings of this research are essential for policymakers to develop effective strategies for mitigating environmental pollution. Utilizing panel cointegration analysis, the study provides valuable insights into whether continued increases in government spending contribute to higher pollution levels. By identifying the threshold point of spending as a percentage of GDP, policymakers can make informed decisions to avoid the trade-off between increased spending and environmental degradation. For instance, the analysis reveals that Hawaii's tipping point is 16.40%. The empirical results underscore the importance of adopting sustainable policies that foster economic growth while minimizing environmental harm. These findings will aid policymakers in formulating targeted and efficient approaches to tackle climate change and promote long-term environmental sustainability in the United States. Moreover, the impact of tourism development on CO2 emissions varies across states, with some US states experiencing a decrease while others see an increase. [ABSTRACT FROM AUTHOR]

Research background: We all regard unemployment as a negative phenomenon. It can have a negative impact on the individual but also on society as a whole. In an effort to reduce unemployment, governments around the world are spending considerable sums of money on financing active labour market policy instruments that help unemployed people to reintegrate into the labour market. It is therefore highly desirable for individual governments to know whether the level of government spending on active labour market policy instruments can influence the unemployment rate in their country. The analysis of the relationship between unemployment rates and government expenditure is crucial not only for policymakers but also for all parties invested in the prosperity of the nation. Purpose of the article: The main aim of this paper is to assess the correlation between government expenditures on active labour market policy and the unemployment rate in Slovakia. Methods: In order to assess the impact of government expenditure on active labour market policy on the unemployment rate in the Slovak Republic, we use correlation analysis, specifically the Pearson correlation coefficient. The data needed for this analysis come from publicly available databases, and we focus our analysis on the period 2009-2021. Findings & Value added: The Pearson correlation coefficient value provides information about the strength of relationship between government expenditure on active labour market policy on the unemployment rate. In this case, the value of the correlation coefficient was -0.469, i.e. it was an indirect moderate linear relationship. Based on the result of the statistical significance test of the correlation coefficient to be zero, i.e. statistically insignificant, and hence government expenditure spent on ALMP instruments and the unemployment rate in the Slovak Republic are uncorrelated. [ABSTRACT FROM AUTHOR]

One of the priority goals for the state policy is ensuring sustainable economic growth. The theory of fiscal federalism argues that fiscal decentralization fosters both regional and national economic development by providing the opportunity to coordinate regional needs and national policy goals. The purpose of the study is to assess the impact of fiscal decentralization on the economic development of Russian regions. The analysis was conducted with panel data for 83 regions for the period 1996–2019. The simultaneous quantile regression approach with bootstrapping standard error was used for econometric modelling. The results of the study show that fiscal decentralization does not contribute to the economic development of more prosperous regions of the Russian Federation, whereas in less developed regions, fiscal decentralization indicators have a significant negative effect on the gross regional product per capita. Based on the results obtained, proposals aimed at improving state policies were made.

Government expenditures represent one of the most important issues for policymakers both in ordinary and extraordinary conditions. The aim of this paper is to estimate and identify the effects of selected macroeconomic determinants on government expenditures in Serbia from 2002 to 2020. Using the ARDL technique, the empirical findings confirmed that there is a long-run relationship between gross domestic product, government revenues, inflation, and population size and government expenditures for the observed period. The significant and positive effects of explanatory variables are confirmed in the long run, except for inflation, whose impact is not significant in the short run. Specifically, GDP growth, higher inflation rate, greater government revenues and population contribute to the higher government expenditures level. The obtained findings give certain directions to fiscal authorities in creating and defining optimal government expenditures level in the context of influences of chosen macroeconomic variables.

The purpose of this study is to develop proposals for the introduction of ecological, digital, professional, innovation and social public procurements in the national strategy on E-Public Procurement Reform and the strategy of procurements on the company-customer level. The relevance of this study is due to the need to ensure the development of “smart”, sustainable, inclusive economy, which will help reduce unemployment, poverty, facilitate access for people with disabilities to work, create opportunities for the education of young people and adults, stimulate innovations, meet expectations of citizens, solve environmental problems, carry out digital transformations taking into consideration the best world practices. The share of public procurements in expenditures of the state budget and gross domestic product of Ukraine, the dynamics of the procurement’s participants in the B2G segment is evaluated. In Ukraine, the largest share of expenditures falls on security and social protection, however, the prosperity index in these categories is critical (“red” zone). In order to form The E-Public Procurement Strategy, the best world practices of introducing innovative, environmental and social procurement criteria should be considered. Strategic directions of public procurement, namely – ecological, digital, professional, innovation and social, which provide sustainable and inclusive development of economy, are proposed.

In this study, the effect of public expenditures and, their sub-components on environmental pollution is discussed in G-7 countries. Two different periods were used in the study. These are the period 1997–2020 for general public expenditure, and the period 2008–2020 for public expenditure sub-components. For cointegration, Westerlund cointegration test was used, and according to the analysis result there is a cointegration relationship between general government expenditure and environmental pollution. Panel Fourier Toda-Yamamoto causality test was used to determine the causality relationship between public expenditures and environmental pollution and the result indicates that there is bidirectional causality between public expenditures and CO2 on a panel basis. For models estimation, System the Generalized Method of Moments (GMM) method was used. The findings of the study indicate that general public expenditures decrease environmental pollution. Considering at the results of the sub-components of public expenditures, housing and community amenities, social protection, health expenditure, economic affairs, recreation, culture & religion expenditures have a negative effect on environmental pollution. Other control variables generally have a statistically significant effect on environmental pollution. Energy consumption and population density increase environmental pollution but environmental policy stringency index, renewable energy and GDP per capita reduce environmental pollution. [ABSTRACT FROM AUTHOR]

The issuance of Law No. 1 of 2022 as a complement to Law No. 23 of 2004 concerning financial relations between the central and regional governments. Fiscal transfer policies are becoming more selective in seeing local needs. However, this needs to be supported by good fiscal management in the regions to carry out development activities that have an impact on increasing income that is more evenly distributed between regions and communities. One of the important instruments of fiscal decentralization is the management of government spending. Therefore, the purpose of this study is to examine the relationship between government spending and per capita income in Southeast Sulawesi. The units of observation analyzed are gross regional domestic product per capita in the previous year, personnel expenditures, goods and services expenditures, capital expenditures, HDI, district and city dummy variables. The model approach in the calculation is panel data regression analysis from 2016-2020. Based on the test results, the probability (F-statistics) is obtained, the equation of income per capita the Hausman test > 0.05, then the random effect model (REM) equation is the best model choice. The results of the analysis show all independent variables have a strong relationship with the dependent variable in the model which is shown by an R-square of 0.982. Variables that show significant effect on the increase in percapita income are ((GRDPprk(t−1)), goods and services expenditure, capital expenditure and HDI, while personnel expenditure has a negative effect on per capita income for both districts and cities in Southeast Sulawesi Province. [ABSTRACT FROM AUTHOR]

Are budget deficits eliminated by tax increases or by spending cuts? This paper provides a new perspective on this issue by analyzing fiscal plan data, as they are closely related to budget decisions of the legislative branch and are less correlated with macroeconomic developments during the fiscal year. We examine a novel historical dataset on Switzerland from 1850 to 2018 using (nonlinear) cointegration tests and error correction models. First, our historical analysis indicates that realized budget adjustments usually occurred through revenues and that fiscal plans are specifically crucial for short-term budget dynamics. Second, a recursive estimation approach shows that the adjustment relationships vary over time. In addition, our dynamic analysis provides evidence that budgetary imbalances are addressed by adjusting expenditures in plans in the last decades in contrast to realized adjustments, which benefited from underestimated revenues. However, initial indications suggest that the debt containment rule counteracts this asymmetry. Finally, from a policy perspective, our results stress the importance of fiscal plans in budget adjustment processes and the design properties of fiscal rules. [ABSTRACT FROM AUTHOR]

Recent evidence suggests that there might be an asymmetric process of adjustment towards the long-run equilibrium in the government revenue-spending nexus. In this paper, the long-run relationship between government revenue and spending is examined in the case of Thailand using annual data over the period 1991–2019. Specifically, this is an attempt to determine whether this long-run relationship is linear or nonlinear. In doing so, both linear and nonlinear cointegration tests are employed. The empirical results suggest that the positive long-run relationship between revenue and spending is linear and stable when revenue is the dependent variable. By estimating the TAR and MTAR models, evidence of a nonlinear revenue-spending relationship is not found. Therefore, there does not seem to be asymmetric adjustment toward the long-run equilibrium. The results of causality tests based on the estimated ECMs of linear cointegrating equations show no causality between revenue and spending in the short run, supporting the fiscal institutional separation hypothesis. In the long run, there is unidirectional causality running from government spending to revenue, which supports the fiscal spend-and-tax hypothesis. [ABSTRACT FROM AUTHOR]

This article presents the findings of a study that utilized a panel ARDL (autoregressive distributive lag) model to scrutinize the association of foreign direct investment (FDI), trade, human capital, government expenditures, with tourism in the BRICS nations. The research analyzed data spanning the period from 1995 to 2020 and unveiled crucial insights into the dynamics influencing tourism development in these countries. The results revealed that FDI, trade, and human capital demonstrated positive associations with the tourism sector, in the short and long time period. These factors played a significant role in boosting tourism activities within the BRICS (Brazil, Russia, China, India & South Africa) nations. However, an inverse correlation was observed between government expenditures and tourism during the same time frame, suggesting the need for careful allocation and optimization of public funds to enhance the sector's growth and performance. This study sheds light on the complex interplay between various determinants of tourism development in BRICS countries, providing valuable implications for policymakers and industry stakeholders. [ABSTRACT FROM AUTHOR]

Copyright of Acta Scientiarum Polonorum. Oeconomia is the property of Wydawnictwo SGGW and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The relevance is determined by the presence of discussions among economists and political scientists about the state regulation role, especially during crises when governments are expected to provide an economic miracle solution or new measures that are not thought about during periods of growth. The subject of the study is government expenditures, which should be fairly distributed by governments in crisis times with a clear vision and understanding of public goals, for the achievement of which it is necessary to undertake economic changes. Therefore, the purpose of the study is to generalize the results of the discussion about the possibility of changing the economic “mainstream” to the “modern monetary theory” (MMT) and its prospects in public finance management. The research methods include systematic, critical, comparative and cross-country analysis and verification of the realism of the MMT’s proposals. The results of the study made it possible to analyze the economic solutions of the new theory based on the political subtext of the theory itself: is it possible to entrust governments with an unlimited budget filled with the issue of national currency; has there been a need to update public goals; what are the prospects for full employment with government funding of jobs; is it possible for society to subject taxes to increase or is there enough transparency and collection; is inflation dangerous in the current situation and in the future; is the MMT really an economic recipe for politicians focused on achieving public goals, including ecology and inequality. It is concluded that all-round criticism and all-round approval are equally unacceptable in relation to the new theory from the standpoint of practical state regulation. Some elements of the MMT have already been implemented in various countries, both successfully and with negative consequences. Therefore, when considering the MMT in unity with public goals, the criterion of choice should not be the quality of economic decisions, not their elegance and validity, but enforceability in accordance with urgent and strategic tasks that need to be solved by politicians.

Copyright of University of Sharjah Journal for Humanities & Social Sciences is the property of University of Sharjah - Scientific Publishing Unit and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

One of the current problems in the world is the high level of the underground economy. The process that remains problematic is to determine the level of the hidden economy. By determining the determinants of the hidden economy and formulating a specific policy related to them, it is possible to reduce the level of its growth, but it is impossible to completely exclude it from the economy. In this case will be data from 1991-2015used. In the article, a statistical analysis of the factors affecting the level of the hidden economy of Asian countries was carried out. It includes 12 key determinants such as GDP per capita, tax revenue, unemployment rate, trade openness, GDP per capita growth, Doing Business rating, percentage of people using the Internet, inflation rate, political stability, government efficiency, rule of law, and corruption management. [ABSTRACT FROM AUTHOR]

The aim of the study is to examine the effect of government expenditures on institutional and economic dimensions of governance from the standpoint of selected indicators. We evaluate the effect of government expenditures on selected governance indicators (government effectiveness, regulatory quality and the control of corruption) according to two dimensions (institutional and economic dimension of governance). The research covers the period 2002-2021, applying a panel data analysis and the fixed effects method on the sample of 29 European countries. For the purposes of further examination, the European countries are divided into two groups (by GDP per capita in PPS). The results confirmed the effect of differing categories of government expenditures on the evaluated indicators of governance between European countries with higher and lower economic levels. European countries with a higher economic level manifested the strongest positive effect of government expenditures on secondary education and expenditures on police services in relation to the economic dimension of governance (government effectiveness and regulatory quality). The results of countries with a lower economic level show that the control of corruption is affected, both positively and negatively, by government expenditures on education. Government expenditures on pre-primary and primary education had the largest impact in the economic dimension of governance in relation to the reduction of government effectiveness and government expenditures on sporting and recreational services in terms of the reduction of regulatory quality. The reached findings can be beneficial to creators of public policies at all levels of public administration in the creation of concepts and strategic goals. [ABSTRACT FROM AUTHOR]

This article examines the effects of government expenditures, regional GDP, regional minimum wages, employment rate, and poverty severity on income inequality by applying the system Generalized Method of Moments panel model to overcome the dynamic endogeneity problem from 2007 to 2020. The results show that government expenditure and an increase in the regional minimum wage for low-wage workers can reduce income inequality in both the short run and long run. Furthermore, high regional GDP and high levels of employment rate for workers with low skills can exacerbate the level of income inequality in the long run. However, reducing the severity of poverty has no effect on reducing inequality. This study provides policy recommendations to the government to improve basic public services and make various training skill programs, including ICT, in order to increase creativity and job opportunities for low-income people. [ABSTRACT FROM AUTHOR]

The purpose of this study is to develop proposals for the introduction of ecological, digital, professional, innovation and social public procurements in the national strategy on E-Public Procurement Reform and the strategy of procurements on the company-customer level. The relevance of this study is due to the need to ensure the development of “smart”, sustainable, inclusive economy, which will help reduce unemployment, poverty, facilitate access for people with disabilities to work, create opportunities for the education of young people and adults, stimulate innovations, meet expectations of citizens, solve environmental problems, carry out digital transformations taking into consideration the best world practices. The share of public procurements in expenditures of the state budget and gross domestic product of Ukraine, the dynamics of the procurement’s participants in the B2G segment is evaluated. In Ukraine, the largest share of expenditures falls on security and social protection, however, the prosperity index in these categories is critical (“red” zone). In order to form The E-Public Procurement Strategy, the best world practices of introducing innovative, environmental and social procurement criteria should be considered. Strategic directions of public procurement, namely – ecological, digital, professional, innovation and social, which provide sustainable and inclusive development of economy, are proposed. [ABSTRACT FROM AUTHOR]

This study aimed to identify the short and long-term inflationary effects of fiscal policy, by using the OLS method and the vector autoregression (VAR) on annual data of the Jordanian economy during the period (1985-2019). After conducting the necessary tests, the study reveals the following results: the ratio of tax revenue and the growth of capital public spending have a negative effect on inflation, while the growth rate of current public spending positively affects inflation. In the short run, the growth rate of current and capital public spending have a positive effect on inflation, while the ratio of tax revenue negatively affects inflation. Based on these results, the study recommends the need to use the tax revenues in the capital spending form, since it considered as a source of public revenue and it induces investment through provision of the infrastructure and the complementary projects. To this is added the of role capital spending in reducing the inflation rates. [ABSTRACT FROM AUTHOR]

The aim of this contribution is to evaluate the efficiency of the Czech educational system. If we take into account the fact that investments are made in consideration of future returns, then it holds true that investments in the form of public finances invested in the education system are implemented with an eye to future returns, in particular in terms of future growth in economic performance. Based on the time series of the development of government expenditure on education, and with regard to the differentiation of this sector into primary, secondary, and tertiary education, this article evaluates the relationship of the government expenditures to the development of the gross domestic product for the Czech Republic in the period 1992-2015. A regression analysis method is used, modified by the ARIMA model and the time lags assumed for the relationship of these two variables. A relationship between growth in government expenditure on secondary education and subsequent growth in GDP has been demonstrated. According to the results, a time lag of 6 years can be expected between these occurrences.

This study analyses the influence of economic growth on inequality, concentrating on the role of governments as mediators. The period studied is from 2000 to 2020, encompassing 11 post-Soviet countries. The primary estimation method used is the two-stage least squares for panel data. Despite the differences in the economic and political systems at the current development stage, the post-Soviet countries share a common pattern in terms of the relationship between economic growth, the labour income share and the level of inequality, which we first show in this article. Government expenditure has the potential to reduce inequality. However, its effectiveness depends largely on government efficiency and the development of democratic institutions. Despite the increase in government spending on education, more is needed to reduce income inequality. Increased economic performance, productivity, and high-quality state institutions are necessary for this change.

Following the present scale of fiscal imbalances, governments often implement fiscal consolidation programs to restore macroeconomic stability. This paper empirically explores the connections between social expenditure, current account and fiscal consolidations using the system-GMM estimator, on a panel of 23 emerging and middle-income countries for the 2009–2018 period. Our results confirm that government social expenditure decreases once fiscal austerity measures are implemented, practically when they are spending-driven. Fiscal consolidation may hurt important social expenditure allocation mainly on education and health components. Furthermore, we find that fiscal consolidation improves the current account deficit, providing support for the twin deficits hypothesis. These findings indicate that fiscal consolidation will eventually contribute to medium- and long-term external debt stability through the current account improvement. However, the exclusion of key growth determinants such as human capital can lead to many inefficiencies such as weak competition in the provision of social services (Jafarov and Gunnarsson in Government spending on health care and education in Croatia: Efficiency and reform options, working paper 136, International Monetary Fund, 2008). We suggest rationalizing social spending and devoting the country's revenue to necessary and economically productive projects. The efficient use of resources will thus ensure better quality of education and health care services. This calls for good governance, an adequate administration and effective delivery structures. [ABSTRACT FROM AUTHOR]

İktisat yazınında maliye politikalarının etkinliği çokça tartışılan bir konudur. Klasik teori kamu kesiminin özel sektörü dışlayacağını savunurken, Keynesyen teori talep yetersizliği sorununun çözümü için kamu harcamalarının artırılmasını önermektedir. Literatürde kamu harcamalarının işsizlik ve büyüme gibi ekonominin makroekonomik performansının göstergesi kabul edilen büyüklüklerle ilişkisini inceleyen çok sayıda çalışma vardır. Ancak bu göstergelerin tek başına bir ekonominin performansının göstergesi olmadığı da sıklıkla dile getirilmektedir. Bu nedenle makroekonomik performansın ölçülmesi adına yeni göstergeler geliştirilmektedir. Bu çalışmada 2002-2019 döneminde 28 OECD ülkesi için kamu harcamaları ve makroekonomik performans arasındaki ilişki panel veri analizi ile incelenmiştir. Analizde makroekonomik performans göstergesi olarak Barro Endeksi kullanılmıştır. Panel veri analizinde uygun modelin seçiminde F testi, LM testi ve Hausman testi uygulanmıştır. Söz konusu testler sonucunda sabit etkiler modeli uygun model olarak belirlenmiştir. Daha sonra temel varsayımların sınanmasında uygulanan testler sonucunda regresyon analizi için uygun olan Driscoll-Kraay standart hata tahmincisi testi kullanılmıştır. Analiz sonuçlarına göre kamu harcamalarındaki artış ülkelerin makroekonomik performansını olumlu etkilemektedir.

Environmental pollution is an important threat for sustainable economic development at the national and the regional level. Nevertheless, regional studies investigating the determinants of the environmental pollution in Turkey are limited. This study analyzes the effects of income, energy consumption, trade openness and environmental protection expenditures on the environmental pollution in NUTS 2 regions of Turkey for the period 2007-2019 within the framework of the Environmental Kuznets Curve (EKC) hypothesis. The findings obtained from the study using the Two Step System Generalized Moments Method show that the EKC hypothesis is not valid in Turkey for NUTS 2 regions. Morever, energy consumption has a statistically significant and positive effect on the environmental pollution, while trade openness has a negative effect. However, environmental protection expenditures do not have statistically significant effects on the environmental pollution. These results reveal that the effectiveness of the economic and fiscal policies implemented at the regional level to increase the environmental quality should be increased.

The relationship between public expenditures and economic growth is one of the most important issues in the economics literature. It is thought that examining the relationship between related studies in the literature will offer new researchers a clearer and broader perspective. The aim of this study is to try to determine the common and different aspects of the literature examining the relationship between these two variables. While determining these aspects, 3498 studies on public expenditures and economic growth for the period 1975-2021 compiled from the Web of Science core collection; It was analyzed with VOSviewer software and bibliometric network maps were produced. As a result of the analysis, it has been seen that the institutions owned by developed states such as the United States, England, Germany, and the authors working under these institutions come to the fore and shape the literature. In addition to the public expenditures and growth keywords used in the studies, it has been determined that the fiscal and monetary policy keywords are also frequently used. It has been determined that 3498 studies, which emerged within the framework of certain limitations, increased rapidly after 2005 in general. [ABSTRACT FROM AUTHOR]

Adopting an international historical perspective, this study aims to identify the main empirical regularities in the long-run growth pattern of government expenditure. The application of parametric and non-parametric analyses to a sample of developed countries observed over the period 1880–2018 allows us to detect two main findings. The first is that, beyond the long-term growth of government expenditures in absolute terms, there is evidence for three expansionary long waves corresponding to the booms before and during the twentieth century's two world wars, along with the 'golden age of public sector intervention'. The latter refers to the decline in cross-country heterogeneity in the trends and composition of absolute growth of government expenditure since the 1960s. The 'ratchet phenomenon' in the pre-WWII period and the shift in ideological focus from market to government failures in the last decades of the twentieth century provide explanations that complement Wagner's law and are consistent with the observed long-term evolution of the growth of government expenditure. [ABSTRACT FROM AUTHOR]

The greenhouse gas (GHG) emissions generated by human activities are the leading cause of rapid climate change. High energy consumption projects in the BRI initiative have more impact on the environment. Therefore, fiscal policy instruments are essentials to combat climate change. This paper explores the impact of fiscal policy instruments, FDI, energy use, and GDP on climate change in Belt and Road Initiative (BRI) countries. The study utilizes fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS) long-run econometric models to estimate the long-run results in the full panel and individual countries. Furthermore, Dumitrescu and Hurlin's (2012) causality test has been utilized to observe the short-run causalities among variables. The empirical findings confirmed that fiscal policy instruments expressively help to mitigate climate change, while foreign direct investment significantly intensifies the climate change in BRI. The short-run heterogeneous causality endorses bidirectional causality between fiscal policy instruments and climate change. It suggests that policy-makers should consider fiscal policy instruments to mitigate climate change in the BRI countries. [ABSTRACT FROM AUTHOR]

In this topic, we will deal with issues related to the size and structure of the government in terms of public spending, because the size of the government is not determined by the size of the public administration or the number of employees, but is determined by the activity they perform, expenses, production capacity and controller, investments, etc. Also the size and structure of government adapts to changes in the organizational environment of government (especially uncertainty and complexity) as predicted by organizational theory. Studies have shown that both government size and changing structure, holding other factors constant, produce changes in the uncertainty and complexity of governments, organizational environments. We find seven groups of governments that adapt their organizational sizes differently in response to changes in the uncertainty and complexity of their organizational environments and four groups of governments with different preferences for how to adapt government structures. We also use available data to categorize governments according to the extent to which they reactively adapt their organizational size and structure after changes in their organizational, contemporary, or strategic environment occur before these environmental changes happen. Governments also differ in the difficulties they face. They reduce public expenditures, change priorities and try to manage the resources they have in order to maintain the level of well-being of the population. Keeping in mind the economic situation, changes in policies and economic development priorities, we will examine the topic where we will link government spending, taxes and debt. [ABSTRACT FROM AUTHOR]

This study examines the dynamic heterogeneous effect of government expenditures on economic growth in 20 Middle East and North Africa (MENA) countries during the 1990–2016 period. The results reveal that a dynamic adjustment in economic growth in the MENA region occurred from the short to the long run. Arguably, government expenditures can promote economic growth. In the long run, the coefficients of government expenditures are positive and significant in oil and non‐oil countries; in the short run, the coefficient is statistically significant in oil countries but not in non‐oil countries. The coefficients of government expenditures markedly differ between the two groups. For the MENA region, as a whole, government expenditures exhibit a crowding‐in effect instead of a crowding‐out effect on growth. Importantly, to sustain economic growth, non‐oil countries must embark fiscal reform measures promptly by optimizing government expenditures. Oil countries should consider the implications of short‐ and medium‐term fiscal imbalances. [ABSTRACT FROM AUTHOR]

Older Americans have experienced dramatic gains in life expectancy in recent decades, but an emerging literature reveals that these gains are accumulating mostly to those at the top of the income distribution. We explore how growing inequality in life expectancy affects lifetime benefits from Social Security, Medicare, and other programs and how this phenomenon interacts with possible program reforms. We first project that life expectancy at age 50 for males in the two highest income quintiles will rise by 7 to 8 years between the 1930 and 1960 birth cohorts, but that the two lowest income quintiles will experience little to no increase over that time period. This divergence in life expectancy will cause the gap between average lifetime program benefits received by men in the highest and lowest quintiles to widen by $130,000 (in $2009) over this period. Finally we simulate the effect of Social Security reforms such as raising the normal retirement age and changing the benefit formula to see whether they mitigate or enhance the reduced progressivity resulting from the widening gap in life expectancy.

Bu çalışmada Türkiye’de yüksek eğitimin kişi başına reel gayrisafi yurt içi hasılaya (GSYİH) etkisi, 2008-2017 döneminde 81 il için panel veri analizi yöntemleriyle analiz edilmiştir. Her ilde üniversitelerin açılması, illerde faaliyet gösteren firmaların alanında uzman çalışanları istihdam etmesi imkanını doğurmaktadır. Bununla birlikte yüksek eğitimlilerin nüfus içindeki oranlarının artmasıyla firmaların ürettikleri mal ve hizmet kompozisyonunu değiştirmesi beklenmektedir. Çalışmada ayrıca, iller, üst, orta ve alt gelir gruplarına ayrılmış, her bir gelir grubu için de tahmin yapılmıştır. Grupların gösterdiği veri karakterlerine göre sabit etkiler ve rassal etkiler modelleri kullanılmıştır. Çalışmanın bulgularına göre, yüksek eğitim tüm il grupları için kişi başına reel GSYİH’ye pozitif ve anlamlı katkıda bulunmaktadır. Bu katkı, alt gelir grubunda en yüksektir. İkincisi, orta dereceli okullardan mezun olan bireylerin, üst ve orta gelir gruplarında kişi başına reel GSYİH’ye negatif etki ettiği gözlenmiştir. Yüksek öğrenimli kadınların oranı yıllar içinde tüm il gruplarında artmış olmasına rağmen sadece üst ve orta gelir gruplarında kişi başına reel GSYİH’ye pozitif katkıda bulunmuştur.