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ABSTARCTFiscal policy allocation is not purely determined by the labour-capital conflict, but increasingly around cross-class housing coalitions. Although rising house prices are conventionally understood as drivers of fiscal austerity, this view has been challenged. Alternatively, governments may use fiscal policies to support house price growth to meet the primary economic interests of homeowners and compensate non-homeowners through the welfare system. Using an econometric analysis of 19 advanced economies between 1980 and 2018, we show house prices have positive effects on taxation revenue as well as fiscal spending on public investment, welfare and education. A second multi-level analysis provides a political explanation of this observed outcome by demonstrating parties respond to rising house prices by proposing more welfare and public investment spending in their manifestos. Conterminously rising house prices and rents also lead to greater welfare spending, suggesting governments use fiscal policy to protect those excluded from homeownership from labour market risks. [ABSTRACT FROM AUTHOR]

This paper studies the welfare cost of fiscal policy in developing economies where a significant fraction of the population is government spending-dependent, using as an example Morocco. We develop a Dynamic General Equilibrium model representing an economy populated by three types of households: Standard Ricardian households with access to the financial market, households who supply labor but have no access to the financial market, and non-active government-dependent households (who behave as hand-to-mouth agents). The paper computes welfare changes of different tax rates and alternative spending policies and quantifies the trade-off of fiscal policy across the different groups of agents. We find that: (i) Distortions from some taxes can be positive due to the presence of public inputs; (ii) Output efficiency can be gained by changing the tax mix while keeping constant fiscal revenues; and (iii) Social welfare gains can be obtained by increasing public investment and reducing government consumption and keeping lump-sum transfers constant. [ABSTRACT FROM AUTHOR]

Introduction. Pension systems are a key element of social protection for the elderly. They are designed to provide senior citizens with stable income not from work. However, pension systems currently being developed in Europe are increasingly exposing the working-age population to the risk of poverty in old age. The European pension paradigm strives for an adequate level of pension payments and builds financial protection against poverty, while the future evolution of wages and prices remains unknown for Europe as a whole. Methods. Scientific research is based on general and special methods of scientific cognition. In the process of forming the concept of the scientific article, modern scientific methods of studying economic and social phenomena were used, including methods of system-structural, functional, factorial and comparative analysis, as well as categorical, logical and structural analysis and synthesis, detailing and generalization, grouping and comparison, identification of cause-and-effect relationships. The authors proceed from an understanding of the scientific hypothesis of reforming the pension system, which ensures long-term investment by the working-age population with income in the future. The empirical base of the study was made up of current data from cross-country comparative studies of Europe in terms of typology of state pension systems. Results. Based on the functional method of cognition, the authors of the scientific article systematize the main types of state pension systems of the European Union, representing the complex content of the indicator value of pension payments. It is noted that in the context of reforming the pension systems of the European Union countries, the reorganization of the functional and ideological components of pension provision, aimed at protecting consumers of pension savings, makes it possible to increase the socio-economic standard of living. Although EU pension systems differ in many respects, they all have one common problem - finding ways to maintain the financial sustainability of the budgetary system while paying pensions in the long term against the backdrop of an aging population and the problem of increasing the ratio of pensioners to the working-age population.

The paper examines the trends in Kazakhstan’s export of information and communication technology services, which is currently one of the priorities of the country’s economic development.Aim and Tasks. Determining the impact of government spending, foreign investment and other significant factors on exports of ICT services; assessing the extent of this impact.Methods. Evaluation of the impact on the dynamics of ICT services export on the basis of comparative and correlation analysis, comprehensive analysis of the industry development indicators in the context of its export orientation, assessment of the impact on ICT services export of the factor of migration of companies and specialists from Russia in 2022–2023 and the resulting growth in the number of ICT sector enterprises with foreign capital.Results. It has been revealed that the influence of traditional factors on the export of ICT services by Kazakhstan, including state budget expenditures, gross inflow of foreign investments, and FDI stock in industries producing these services, has been insignificant or absent over the past decade. The maximum impact on the export of ICT services was caused by an increase in the presence of companies in the industry with the participation of foreign, primarily Russian capital, which occurred in 2022–23.Conclusions. The development of foreign trade activities in sectors of the economy with low initial indicators of export orientation may be more strongly influenced by non-traditional sporadic factors, such as migration of businesses and specialists in the case of the ICT sector in Kazakhstan, whereas traditional factors of their development, including government fostering and foreign investment may not be effective enough.

The relationship between fiscal policy and economic growth is one of the longest-lived economic discourses. In this context, countries with emerging institutions and resource-based economies are of particular interest. Therefore, the Azerbaijani economy was chosen as the object of study. The purpose of this paper is to analyze the relationship between fiscal policy and economic growth in Azerbaijan and analyze the possible existence of the BARS curve relationship in Azerbaijan. The study covers quarterly data for 2005Q1–2023Q2. The autoregressive distributed lag (ARDL) bound test is used to evaluate the relationship between fiscal variables and economic growth (both general and non-oil), as well as the BARS curve relationship. The analysis revealed a positive association between government spending and both overall and non-oil economic growth over the long term. On average, a 1% rise in government spending corresponds to a 0.6% increase in economic growth. Conversely, in the short term, a negative relationship is observed between government spending and economic growth, encompassing both the general and non-oil economy. Notably, no statistical evidence supporting the presence of the BARS curve relationship in Azerbaijan was identified. Amid the circumstances of decreasing oil production in Azerbaijan, these results put more emphasis on the importance of increasing the productivity of government spending.

We employed the Bayesian method to investigate the impact of government spending, financial development (measured by bank credit), and trade on income inequality reduction in 66 low‐income countries (LICs) across Africa, Asia, America, and Europe from 2000 to 2018. Controlling inflation and unemployment, our results indicate that trade and inflation exacerbate income inequality in LICs, while financial development and government spending have no impact on reducing income inequality in these countries. Furthermore, the findings show that real GDP per capita reduces income inequality in LICs. To ensure the robustness of our results, we also conducted frequentist quantile regression, which yielded consistent findings that financial development, government spending, and trade do not reduce income inequality in LICs. We further discuss the potential channels through which trade, financial development, inflation, and government spending contribute to income inequality in LICs, and provide policy implications based on the empirical evidence. Related Articles: Adegboye, Alex, Kofo Adegboye, Uwalomwa Uwuigbe, Stephen Ojeka, and Eyitemi Fasanu. 2023. "Taxation, Democracy, and Inequality in Sub‐Saharan Africa: Relevant Linkages for Sustainable Development Goals." Politics & Policy 51(4): 696–722. https://doi.org/10.1111/polp.12547. Asongu, Simplice, and Nicholas M. Odhiambo. 2023. "The Effect of Inequality on Poverty and Severity of Poverty in Sub‐Saharan Africa: The Role of Financial Development Institutions." Politics & Policy 51(5): 898–918. https://doi.org/10.1111/polp.12558. Polacko, Matthew. 2023. "Turning Off the Base: Social Democracy's Neoliberal Turn, Income Inequality, and Turnout." Politics & Policy 51(4): 538–68. https://doi.org/10.1111/polp.12550. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Ilmu Ekonomi Terapan is the property of Universitas Airlangga 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.)

Copyright of Journal of Economics & Administrative Sciences is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) 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.)

This article explains the mechanism of the asymmetric consequences of government spending shock with the effect of government spending effectiveness indicators on the economic activities of the country using SVAR structural vector autoregression model for 2019-2019. Based on the estimation results of the SVAR model; A shock from oil revenues causes a 9% reduction in investment, 45% production and 1% employment, and a shock from the size of the government causes a 0.1% reduction in investment, 33% production and 6% employment respectively. will be Impulses coming from the government's current and construction expenses; It reduces production by 19% and employment by 90%. Generally; The impact of monetary and oil impulses in Iran's economy depends more on the inflationary state of Iran's economy; In such a way that with the increase of inflation, the effect of financial impulses (implementation of expansionary and contractionary policies) on production decreases and even at very high levels of inflation it can have a negative effect on real production. Considering the different infrastructures, models and economic conditions of Iran, a separate study of how the Iranian market is influenced by the uncertainty of the government's financial policies, the government's foreign exchange policies and investment costs can provide a correct view of the country's macro decisions. How production changes in the Iranian market as a result of these fluctuations. [ABSTRACT FROM AUTHOR]

This article examines the significant environmental difficulties China encountered from 2015 to 2021. Our investigation focuses on supporting sustainable development while reducing carbon emissions and improving landscape planning. In order to accomplish this goal, we utilize Data Envelopment Analysis (DEA) as a modeling method to evaluate the effectiveness of government spending in promoting environmental well-being. The article examines, via a thorough examination of case studies and assessments, the vital role that changes in public administration play in enabling efficient energy transition governance. Based on essential studies, this study explores the complex link between administrative frameworks and the performance of energy transition programs. To achieve sustainable energy transitions, it emphasizes the value of stakeholder involvement and adaptive governance models via synthesizing results from relative studies and international journals. The present study offers significant perspectives to practitioners, academics, and politicians attempting to negotiate the intricate terrain of energy governance changes. [ABSTRACT FROM AUTHOR]

We analyze various determinants of the average price level using a strictly mathematical approach. Starting with the microeconomic perspective, we review the effect of demand shifters such as consumer income and the level of advertising on the average price level in a simple partial market equilibrium model. Then, we discuss the effect of supply shifters such as the exogenous tax level, worker wage, rental rate, and technology. We use implicit differentiation and Jacobian determinants. While government spending triggers inflation, taxes have the opposite effect. This is consistent with Keynesian theory. Money supply increases national income and prices while reducing the equilibrium interest rate. Therefore, money supply has pro-inflationary effects. The effect of money demand is the opposite—it increases the equilibrium interest rate, thereby lowering national income and prices. Augmenting the model to the level of international trade, we find that exports raise national income, the interest rate, and the average price level, while the effect of imports is just the opposite. Government spending raises the exchange rate while continuous inflation lowers it. [ABSTRACT FROM AUTHOR]

This study investigates the asymmetric effects of fiscal policy on inflation (INF) in Kenya using data for the period from 1991 to 2021. The study differs from previous studies by applying the non-linear autoregressive distributed lag (NARDL) modeling to capture asymmetric dynamics. The study identified a long-run equilibrium and cointegrating relationship among the study variables, with the findings indicating the existence of asymmetric long-run effects of public debt (PD) and government spending (GS) on INF. A positive relationship between increases in PD and INF in the short-run is also established, while decreases in PD are found to increase INF in both the long-run and short-run. Increases in GS raise INF, while decreases in tax revenue (TR) reduce INF in the long-run. Output gap has a persistent positive relationship with INF, while interest rate negatively affects INF. As such, the study recommends that policymakers should prioritize fiscal measures, especially government expenditure by ensuring that any additional spending does not cause inflationary pressures. The government should also regulate PD by ensuring that its levels align with the objective of INF control.

The research seeks to demonstrate the impact of government spending on the productive capacity of the Iraqi economy, as the continuous increase in the volume of public spending and the adoption of the planned deficit method in the budgets of various years must reflect positively on the productive capacity of the country, so the relationship between the two variables was estimated according to the autoregressive distributed lag model (ARDL) as it shows the relationship in the short and long terms and for the period 2004-2022, and among the results obtained is that current spending has a negative impact on the productive capacity index. This means that current spending is unproductive within its vicious circle, that is, money leaks out without generating economic returns for the country. Investment spending has a positive impact on the productive capacity index, as the average investment spending during the research period amounted to approximately (20%) of government spending, which is a very low percentage that was reflected in the weakness of the investment-based structures of the Iraqi economy, and this is what made the productive capacity index of the Iraqi economy It records a low percentage, reaching its best levels (35%), and this is consistent with the weak allocation of financial resources in investment aspects. What supports the analysis is the relationship test, which shows us that investment spending has a positive and significant effect on production capacity, but its parameter reached (0.07), which is a very low percentage. It has almost no effect. However, if a large percentage of financial resources were directed towards investment areas, this would develop projects, increase their ability to produce and productivity, and achieve high rates of GDP growth. Therefore, the research recommends the necessity of directing government spending towards productive sectors in order to improve production capabilities and achieve sustainable development comparable to developed countries, as well as periodically monitoring and evaluating the extent of the productivity of public spending in various economic sectors in order to make it more effective. [ABSTRACT FROM AUTHOR]

The research aims to provide insights into the respective contributions of each factor to overall economic expansion. This article uses qualitative methods with literature from scientific articles as a reference to the results of the research in this article. The researcher provides a perspective on the appropriate literature to support this scientific article as a final result. The study's findings provide valuable insights for policymakers and practitioners who want to drive sustainable economic development. By understanding the complex interplay between different economic variables and their impact on growth, policymakers can design more effective policies aimed at fostering an inclusive and resilient economy. In addition, these findings affirm the importance of ongoing research and analysis to deepen our understanding of the drivers of economic growth and provide a basis for evidence-based policy decisions. [ABSTRACT FROM AUTHOR]

This study examines the relationships between Greek macroeconomic variables, examining before and after the euro's introduction as a currency. We conducted an extensive analysis from 1980 to 2019, examining various economic indicators such as government expenditure, unemployment rates, taxation, inflation, and national debt, employing causal and correlation analysis and econometric modeling with and without time-varying effects. The results revealed a significant correlation between the introduction of the euro and a tighter relationship between government spending and unemployment levels, while one more remarkable point was that higher government spending or debt reduction initiatives appeared to positively impact joblessness, particularly in the context of the euro. Our research underscored the correlation between national debt and government spending as increased debt led to reduced government expenditure and vice versa. Unemployment cited an increased impact on government spending right after the euro adoption, and on the other hand, the effect of unemployment on government spending decreased. The debt–government spending nexus was decreasing for many years before the euro adoption, while just before the euro adoption, the relationship between debt and government spending was rather stable. Finally, during the euro adoption, the effect of inflation on tax increased, while the corresponding inflation tax remained stable. Our findings have significant implications for policymakers shaping the economic strategies in Greece as they point out the necessity for stable and balanced approaches that manage government spending and debt to address unemployment effectively. [ABSTRACT FROM AUTHOR]

BACKGROUND AND OBJECTIVES: This study aimed to analyze the influence of economic growth, industrialization, government spending, and environmental taxes on environmental quality as well as the influence of environmental quality, unemployment, and inflation on Indonesia's economic growth. This condition is important to maintain environmentally friendly economic development to achieve sustainable development. METHODS: The study was conducted using simultaneous equation model analysis considering classical assumption tests such as normality tests, granger causality and heteroscedasticity. This study data began in 2015 to 2021 in 34 provinces in Indonesia. In this study, the determinants of environmental quality used were industrialization, government spending and environmental taxes, whereas those of economic growth were unemployment and inflation. FINDINGS: The results of the study indicate that economic growth, industrialization, government spending and environmental taxes have a significant effect on Indonesia's environmental quality. Collectively, these determinants account for 22.18 percent of the variance. However, environmental quality and unemployment do not have a significant effect on Indonesia's economic growth. Meanwhile, inflation has a significant effect on economic growth. Simultaneously, the influence of the determinants of economic growth is 33.52 percent. CONCLUSION: Economic growth, industrialization, government spending and environmental taxes have a significant influence on Indonesia's environmental quality. On the other hand, environmental quality and unemployment do not have a significant effect on Indonesia's economic growth. Meanwhile, inflation has a significant effect on economic growth. The policies suggested, include the following 1) the government must be able to maintain environmental quality while still encouraging economic growth, implemented by creating an environmentally sound growth concept or applying the green economic concept to harmonize growth and the environment; 2) the industrialization process must be maintained so that it does not damage the environment, and pollution threshold rules created in the industrialization process must be applied. [ABSTRACT FROM AUTHOR]

We investigate whether the introduction of state credit default swaps (CDS) affects the fiscal spending of state governments. A difference-in-differences analysis indicates that CDS-referenced states show a significant decline in government spending compared to non-CDS-referenced states when state CDS issuance introduces a more transparent fiscal information environment. We also find an improvement in state media coverage post-CDS-initiation. The results suggest that CDS initiation can provide valuable information for the fiscal conditions of state governments, which in turn leads to spending cuts. The evidence indicates the important role that credit market innovation activities play in the fiscal decisions of state governments. [ABSTRACT FROM AUTHOR]

We assess public spending efficiency of 20 Latin American countries over the period of 2000–2019, computing data envelopment analysis efficiency scores. For the Public Sector Performance composite indicator, we use the annual data of socio-economic indicators, and for the input measure we consider Total Public Spending as a percentage of GDP, by spending category. The results show that public spending during the period under study increased, but that overall governments were not efficient, as on average they could have used 27% less spending to achieve the same levels of performance. On the other hand, governments could have increased their performance by 18% whilst maintaining the same level of spending. The most-efficient countries were Chile, Guatemala, Panama, and Paraguay, with the least efficient being Bolivia, Venezuela, Nicaragua, Suriname, and Brazil. [ABSTRACT FROM AUTHOR]

BACKGROUND AND OBJECTIVES: This study aimed to analyze the influence of economic growth, industrialization, government spending, and environmental taxes on environmental quality as well as the influence of environmental quality, unemployment, and inflation on Indonesia’s economic growth. This condition is important to maintain environmentally friendly economic development to achieve sustainable development.METHODS: The study was conducted using simultaneous equation model analysis considering classical assumption tests such as normality tests, granger causality and heteroscedasticity. This study data began in 2015 to 2021 in 34 provinces in Indonesia. In this study, the determinants of environmental quality used were industrialization, government spending and environmental taxes, whereas those of economic growth were unemployment and inflation.FINDINGS: The results of the study indicate that economic growth, industrialization, government spending and environmental taxes have a significant effect on Indonesia’s environmental quality. Collectively, these determinants account for 22.18 percent of the variance. However, environmental quality and unemployment do not have a significant effect on Indonesia’s economic growth. Meanwhile, inflation has a significant effect on economic growth. Simultaneously, the influence of the determinants of economic growth is 33.52 percent.CONCLUSION: Economic growth, industrialization, government spending and environmental taxes have a significant influence on Indonesia’s environmental quality. On the other hand, environmental quality and unemployment do not have a significant effect on Indonesia’s economic growth. Meanwhile, inflation has a significant effect on economic growth. The policies suggested, include the following 1) the government must be able to maintain environmental quality while still encouraging economic growth, implemented by creating an environmentally sound growth concept or applying the green economic concept to harmonize growth and the environment; 2) the industrialization process must be maintained so that it does not damage the environment, and pollution threshold rules created in the industrialization process must be applied

The aim of the article is to quantify and compare the macroeconomic effects of defence spending in the Polish and German economies. Estimating these effects is of particular importance in the context of the substantial increase in defence expenditures in Poland and Germany resulting from the war in Ukraine. The research is based on a dynamic stochastic general equilibrium model that takes into account both demand‑side and supply‑side mechanisms. The impulse response functions calculated based on the models estimated for the two economies show that the impact of defence spending on GDP is much stronger in Poland than in Germany. Furthermore, the empirical results indicate that in the Polish economy, defence spending also stimulates labour and consumption to a greater extent than in the German economy.

This paper investigates the dynamic effects of changes in three different government spending components - public sector wages and purchase of goods and services, energy and other subsidies, and transfers to households - on inflation and private consumption in Indonesia from 2001:Q1 to 2022:Q4, using a non-recursive structural VAR model. The model consists of eight endogenous variables: exchange rate, output gap, tax ratio, government spending, inflation, debt ratio, interest rate, and private consumption. Structural decompositions reveal that inflation responses differ across the three government spending components. Shocks to government subsidies are more likely to lead to higher inflation than shocks to other components. But even spending on subsidies does not always have a statistically significant effect on inflation. Surprisingly, government spending shocks - aggregate or by components - do not seem to have a statistically significant impact on private consumption. The main effect of fiscal expansions may thus be a deterioration in public finances.

The article studies program measures to support tourism industry development abroad. Experience of individual countries allows us to highlight systemic measures aimed at developing tourism infrastructure facilities and creating new jobs both in the industry itself and in related areas. The set of adopted documents in response to the consequences of the COVID-19 pandemic is aimed at multifaceted assistance to the tourism business and support of its employment. The results of generalizing the complex of program-targeted documents on the financial provision of implementing tourism support programs have been presented on the example of the experience of individual countries. The article shows that individual programs supporting the tourism industry in foreign countries with a social orientation are relevant, which allows to obtain a synergetic effect from forming a strategic approach in developing measures to support tourism through targeted programs.

The primary goal of this study is to investigate the impact of social aid expenditures on the proportion of poor people in Indonesian provinces, as well as the additional impact of the COVID-19 pandemic on poverty levels, with a particular emphasis on the interaction between social assistance spending and the pandemic’s effects. Focusing on 34 provincial governments in Indonesia from 2004 to 2022, the data were analyzed using the two-step GMM system. The results of this study indicate that social aid expenditures negatively and significantly impact the proportion of Indonesia’s population living in poverty. This demonstrates that a rise in social aid expenditures lowers Indonesia’s proportion of the impoverished population. The observed negative impact suggests a real decrease in the poverty rate as social aid expenditures rise. In the meantime, this study discovers a positive and noteworthy impact of the COVID-19 variable. This indicates that compared to the time prior to the COVID-19 pandemic, a larger percentage of Indonesians lived in poverty during the pandemic. Furthermore, social aid expenditures were unable to reduce the number of poor people in Indonesia during the COVID-19 period.

Copyright of BES Journal: International Journal of Business & Economic Studies is the property of BES Journal - International Journal of Business & Economic Studies 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 main objective of this study is to examine the impacts of green energy and public investment on the CO2 emissions in North Africa. Moreover, the study also tests the existence of the N-shaped Environmental Kuznets Curve (EKC) hypothesis for North African countries between 1995 and 2018. These factors were analyzed using the Dynamic Ordinary Least Squares (DOLS), Fully Modified Ordinary Least Squares (FMOLS), and Pooled Mean Group (PMG) estimators to obtain estimations of heterogeneous parameters. The outcome of these tests and examinations showed that the N-shaped curve was confirmed. Secondly, The results of the study also demonstrate the effectiveness of renewable energy as an eco-friendly innovation in reducing carbon emissions. This finding highlights the positive impact that renewable energy sources can have in terms of emitting fewer carbon emissions compared to traditional energy sources. Moreover, public investment, which interprets government expenditure, and urbanization contribute to environmental degradation by increasing CO2 emissions in the case of North African countries. Furthermore, the findings also indicated a trade-off effect resulting from the correlation between CO2 emissions and economic development. Based on these findings, the study recommends that economic policymakers in North African countries prioritize transforming the structure of government expenditures to improve environmental quality, optimize the utilization of revenues from non-environmentally friendly energy resources to accelerate the energy transition, increase the exploitation of renewable energy, and promote environmental awareness in society. By implementing these recommendations, North African countries can balance economic growth and environmental quality while reducing their carbon footprint. [ABSTRACT FROM AUTHOR]

This paper investigates the dynamic effects of changes in three different government spending components - public sector wages and purchase of goods and services, energy and other subsidies, and transfers to households - on inflation and private consumption in Indonesia from 2001: Q1 to 2022: Q4, using a non-recursive structural VAR model. The model consists of eight endogenous variables: exchange rate, output gap, tax ratio, government spending, inflation, debt ratio, interest rate, and private consumption. Structural decompositions reveal that inflation responses differ across the three government spending components. Shocks to government subsidies are more likely to lead to higher inflation than shocks to other components. But even spending on subsidies does not always have a statistically significant effect on inflation. Surprisingly, government spending shocks - aggregate or by components - do not seem to have a statistically significant impact on private consumption. The main effect of fiscal expansions may thus be a deterioration in public finances. [ABSTRACT FROM AUTHOR]

This paper is the first attempt to adopt a dynamic stochastic general equilibrium (DSGE) framework with nominal price rigidity and monopolistic competition to compare the macroeconomic effects of unit and ad valorem capital taxes. Our results show that the welfare dominance between an ad valorem tax and a unit tax depends on their relative marginal costs. A higher marginal cost resulting from an increase in capital tax generates less consumption and more labor hours, leading to lower welfare. This result is robust to a varying elasticity of intertemporal substitution in consumption and a varying Frisch elasticity of labor supply, a varying degree of price rigidity and productive versus nonproductive public capital. In response to positive government spending shocks, our results indicate that when the increase in government spending is totally financed via capital taxation, a unit tax is superior to an ad valorem tax. [ABSTRACT FROM AUTHOR]

Currency devaluation is a standout amongst the most emotional even awful proportions of financial strategy that a legislature may attempt It generally creates cries of shocks and Sustainable economic growth and development is undoubtly, one of the most challenging development issue, nowadays, in the developing countries Therefore, this study investigates theoretically and empirically the impact of currency devaluation on economic growth of Pakistan The study finds evidence of non-linearity in this relationship and capture that through a smooth transition regression model. Using annual data for the period 1975-2018, employing ARDL bounds test. From an evaluation of the overall analysis and results, it is concluded that foreign exchange reserves have positive and significant short run effect for all the countries. Inflation has negative and significant effect on economic growth of all the countries while real exchange rate has also positive and significant effect on economic growth. The government spending on development has positive and significant effect in short run scenario for all the selected countries while the money growth have positive and negative but significant effect on different countries depending on the political situation and economy based on agrarian product or industrial products. The results of this study confirm the finding of most previous study, since the advent of the exogenous growth theory. The study suggests that all the variables e.g. inflation, foreign exchange reserves, real exchange rate, money growth and government spending could be effectual in these augmenting economies. [ABSTRACT FROM AUTHOR]

This paper examines the impact of national security threats on a nation's economic growth and fiscal policy based on a case study of the Korean peninsula. I construct four measures of provocations using a newly-assembled list of North Korean provocative events going back to 1960. The results show that the overall impact of North Korean provocations on South Korea's short-run economic growth is negligible. Since inter-Korean relations have gone through four phases, this paper also estimates the impact of provocations over each subperiod. Provocations had a significant impact on South Korea's economic growth during 1960-1970 and 1992-1997 when inter-Korean tensions were high, but the effects took on different signs. While provocations decreased South Korea's economic growth during 1992-1997, it had a positive impact on South Korea's macroeconomy before 1970. This paper provides evidence that the effect of national security threats may vary with the responses from the government and political factors such as the relation between the targeted country and the country that inflicts the threat. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Economic Administrative & Legal Sciences is the property of Arab Journal of Sciences & Research Publishing (AJSRP) 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.)

This paper introduces the political economy triangle (PET) concept of government spending, special interest groups (SIGs) influence, and income inequality, empirically confirming its existence and unveiling its nature while directly addressing key shortcomings of most prior research on the determinants of such inequality. Using static and dynamic panel techniques and data from the US states, it reports several new results: (i) the findings of previous studies regarding the roles of government spending and interest groups, including labor unions, in income distribution are confirmed, however, their estimated inequality effects grossly underestimate those obtained when endogeneity issues are accounted for explicitly; (ii) a dynamic tripartite relationship between the variables of the PET exists; (iii) government spending and SIGs' influence, including union strength, beyond their direct effects on inequality, have a separate positive impact through their interactions; (iv) the effectiveness of government spending in reducing inequality diminishes as the level of SIGs' influence and union strength increase in the short and long run, (v) the aggregate inequality‐increasing effect of SIGs is strengthened and the inequality‐reducing effects of unions weakened as the spending rises, in the short run and long run. Finally, the broad implications of these findings are discussed. [ABSTRACT FROM AUTHOR]

Tax payment is a phenomenon of global significance irrespective of national differences, ideologies, and uniqueness. In this regard, government expenditure scrutiny and transparent reporting have emerged as an important development in social policy that could help boost tax revenue, although less questioned. Therefore, this study examined the impacts of transparency, and government spending (on health, education, and infrastructure) on tax ratio in ECOWAS nations. This study adopted ex-post facto research design. The secondary data used were collected from fifteen (15) ECOWAS countries and covered the selected pre – COVID period of 2012 to19 (8 years). Panel data regression technique was used to estimate the data collected. The results of the analysis revealed that: transparency positively impact on tax ratio in ECOWAS nation; and government spending on Education and Infrastructure positively impact on tax ratio; while government spending on health has no significant impact on tax ratio among ECOWAS nations. This study concluded that transparency and government spending jointly impact tax ratio in ECOWAS nations. The study therefore recommended that tax authorities should embrace the principle of informational, participatory, and accountability transparency to facilitate a tax system capable of closing tax gap.

Fiscal policy has been a tool for economic stabilisation in developing economies for decades. Ever since the Great Depression, fiscal policy has been in the frontline of policy actions. This study investigates the impact of fiscal policy tools on unemployment rate in Nigeria between 1991 and 2021 using the autoregressive distributed lag model. The study has found the presence of cointegration among the variables. Additionally, taxation was found in the long-run to have no impact on unemployment rate while government spending in the long-run worsens unemployment largely due to unproductive and wasteful spending. In the short run, both taxation and government spending worsen the unemployment situation in Nigeria. It, therefore, indicates that the tax system in Nigeria may not be very effective over time. It is thus recommended that the government should consider cutting down expenses and accomplish an expenditure switch from more recurrent spending to more capital and infrastructural spending which will encourage job creation. Furthermore, the government should consider selective taxation on those lucrative sectors with less job-creation capacity in order to give to those sectors with more job creation potential. Additionally, taxation should be logically applied to imported goods to discourage consumption whilst encouraging local production and incentivising local producers through fiscal policy.

We analyze various determinants of the average price level using a strictly mathematical approach. Starting with the microeconomic perspective, we review the effect of demand shifters such as consumer income and the level of advertising on the average price level in a simple partial market equilibrium model. Then, we discuss the effect of supply shifters such as the exogenous tax level, worker wage, rental rate, and technology. We use implicit differentiation and Jacobian determinants. While government spending triggers inflation, taxes have the opposite effect. This is consistent with Keynesian theory. Money supply increases national income and prices while reducing the equilibrium interest rate. Therefore, money supply has pro-inflationary effects. The effect of money demand is the opposite—it increases the equilibrium interest rate, thereby lowering national income and prices. Augmenting the model to the level of international trade, we find that exports raise national income, the interest rate, and the average price level, while the effect of imports is just the opposite. Government spending raises the exchange rate while continuous inflation lowers it.

This study investigates the impact of privatization on the relationship between gross capital accumulation, employment, labor resources, government spending, and gross domestic product (GDP) in Commonwealth of Independent States (CIS) countries. Employing econometric analysis and cointegration evaluation, the study reveals that privatization has had a mixed impact on CIS economies. While privatization has contributed to increased capital accumulation and employment in some countries, it has also led to reduced labor resources and government spending in others. The study also finds that government spending is an indirect indicator of privatization efficiency that significantly influences GDP in Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Russia, Uzbekistan, and Tajikistan.

A challenge for the political economy literature is why the average tax rate becomes less progressive while wage inequality increases with the skill premium. This paper contributes to the literature by developing a majority voting equilibrium model in which households choose their most preferred tax schedule under increasing inequality. We find that majority voting favors a marginal tax rate to fund transfers, where the average tax rate increases with income, when the median skill level lies below the mean skill level. The average tax rate becomes less progressive when required government revenue relative to mean skill increases. These findings reconcile the literature with recent empirical trends and are robust to relaxing the assumptions of exogenous government spending and endogenous labor supply. [ABSTRACT FROM AUTHOR]

This paper uses a fixed effects model and a fixed effects quantile regression to explore the relationship between government spending and poverty reduction in the 63 provinces of Vietnam from 2010 to 2020. Our study argues and finds that government spending plays a significant role in reducing the poverty rate in Vietnam. Furthermore, the paper shows that income per capita is a good proxy for the poverty rate. Given the influential role of government spending in reducing impoverishment, the study also finds that income inequality is a challenge to the Vietnamese government. It contributes to the literature on public finance in Vietnam and emerging markets. Additionally, it has policy implications for policymakers in these economies regarding addressing poverty alleviation and income inequality. [ABSTRACT FROM AUTHOR]

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The information in this study looks at how government spending and debt affect economic growth in High-Income Countries (HICs) and Heavily Indebted Poor Countries (HIPCs) from 2002 to 2021. The study uses Two-Stage Least Squares (2SLS) econometric estimation with a rolling window method to deal with possible endogeneity problems. The results show both what the two groups have in common and what makes them different. The negative effect of debt on growth is the same for both HICs and HIPCs, but their growth causes are very different. HICs depend on things like trade openness, inflation, human capital, financial growth, and how well the government works. HIPCs, on the other hand, focus more on trade openness, inflation, and governance, especially voice and accountability. Both groups' progress is slowed down by government spending, which could be because it blocks private investment and wastes money. The quality of governance has a bigger effect on the growth of HICs than it does on HIPCs. Both groups are affected by government debt and spending in different ways. HIPCs are affected more severely because their institutions and financial systems are not as strong. These results suggest specific ways for the government to handle its debt and spending. They stress the need for responsible fiscal policies and focused investments to help the economy grow while dealing with problems caused by debt. These findings also show how important it is for all countries, no matter what their economic situation is, to keep their debt levels low as a preventative step for longterm economic growth and fiscal stability. [ABSTRACT FROM AUTHOR]