scholarly journals Commitment Problems in Coalitions: A New Look at the Fiscal Policies Of Multiparty Governments

2014 ◽  
Vol 3 (1) ◽  
pp. 53-72 ◽  
Author(s):  
Hanna Bäck ◽  
Johannes Lindvall
Keyword(s):  
Public Debt ◽  
Fiscal Policies ◽  
Coalition Governments ◽  
Future Policy ◽  
Using Data ◽  
Commitment Problems ◽  
Advanced Democracies ◽  
New Look

Many political scientists and economists have argued that coalition governments tend to accumulate more debt than single-party governments do, but the evidence for this proposition is mixed. This article argues that only some coalition governments are more likely to increase public debt than single-party governments: those in which parties are unable to make credible promises to their partners about future policy. It introduces the concept of ‘commitment potential’ within coalitions and proposes a way of measuring it. The study evaluates its theoretical claims using data on 20 advanced democracies observed over a period of almost 50 years. It finds that multiparty governments with high commitment potential do not, on average, accumulate more debt than single-party governments, but that governments with low commitment potential do.

scholarly journals The Impact of Public Debt on the Economic Growth of Jordan: An Empirical Study (2000- 2015)

2017 ◽  
Vol 6 (2) ◽  
pp. 114 ◽  
Author(s):  
Tawfiq Ahmad Mousa ◽  
Abudallah. M. LShawareh
Keyword(s):  
Economic Growth ◽  
Empirical Study ◽  
Regression Model ◽  
Least Squares ◽  
Public Debt ◽  
Least Squares Method ◽  
Negative Impact ◽  
External Debt ◽  
Using Data ◽  
The Impact

In the last two decades, Jordan’s economy has been relied on public debt in order to enhance the economic growth. As such, an understanding  of the dynamics between public debt and economic growth is very important in addressing the obstacles to economic growth. The study investigates the impact of public debt on economic growth using data from 2000 to 2015. The study employs least squares method and regression model to capture the impact of public debt on economic growth. The results of the analysis indicate that there is a negative impact of total public debt, especially the external debt on economic growth. 

Is There a Threshold Effect of Public Debt on Economic Growth?

2019 ◽  
pp. 49-64
Author(s):  
Seher Gulsah Topuz ◽  
Taner Sekmen
Keyword(s):  
Economic Growth ◽  
Linear Relationship ◽  
Public Debt ◽  
Threshold Effect ◽  
Oecd Countries ◽  
Fiscal Policies ◽  
The Public ◽  
Regression Methods ◽  
The Relationship ◽  
Panel Threshold Regression

In this chapter, the relationship between public debt and economic growth is examined for OECD countries. In order to determine this relationship, the data between 2002 and 2016 is analyzed using panel threshold regression methods. The findings of the study suggest that the relationship between public debt and economic growth is linear. The public debt threshold is estimated at 99.75% for OECD countries but it is statistically insignificant. While the public debt to GDP ratio is both below and above this threshold, the effect of public debt on economic growth is negative and statistically significant. There is no evidence of the existence of a non-linear relationship between public debt and economic growth. These findings are expected to guide policymakers in the implementation of fiscal policies.

scholarly journals The effect of increasing the minimum wage on poverty and inequality in Bosnia and Herzegovina

2020 ◽  
Vol 65 (226) ◽  
pp. 121-137
Author(s):  
Amela Kurta ◽  
Nermin Oruc
Keyword(s):  
Income Inequality ◽  
Empirical Evidence ◽  
Minimum Wage ◽  
Bosnia And Herzegovina ◽  
Poverty Reduction ◽  
Policy Debate ◽  
Poverty And Inequality ◽  
Future Policy ◽  
Using Data ◽  
Positive Effect

The minimum wage, as a labour market policy with distributive impact, is widely debated in Bosnia and Herzegovina (BiH). This paper estimates the effect of increasing the minimum wage on poverty and income inequality in BiH, providing the first empirical evidence on the minimum wage in the country. Using data from the Household Budget Survey (HBS) for 2015, the effects of four changes (two per entity) in the minimum wage were simulated using the microsimulation model BiHMOD. First, the effect of the latest changes implemented in the previous period was calculated using the previous minimum wage level as the baseline. Second, the effect of recently proposed changes was simulated using the current level as the baseline. The findings suggest that increasing the minimum wage in BiH has a significant positive effect on poverty reduction, but a limited effect on the level of income inequality. The estimated effects were also calculated for different types of households. The results suggest that a single policy may have unexpected effects if other policies are not taken into account and harmonized accordingly. The findings provide empirical evidence for decision-makers and future policy debate, which is generally missing for this and similar policy issues in BiH.

scholarly journals Financial Crisis and Fiscal Policy: An Assessment of the EU-Member Balkan States

2014 ◽  
Author(s):  
Servet Akyol
Keyword(s):  
Public Sector ◽  
Fiscal Policy ◽  
Public Debt ◽  
Financial Sector ◽  
Fiscal Policies ◽  
Economic Activities ◽  
Public Deficit ◽  
Debt Burden ◽  
Balkan States ◽  
The Eu

The objective of this paper is to study the economic and social results of the post-crisis fiscal policies concerning the Balkan States that are members of the EU. The global crisis, which broke out in the US in 2008, had a deep effect on both developed and developing countries. Until today different policies have been put on the agenda in order to eliminate or alleviate the impacts of the crisis. In this context, bailout and stimulus packages were firstly implemented. Stimulus packages were replaced by austerity policies because of the increasing public debt and budget deficit after 2010. Fiscal policy focused on reducing the debts instead of supporting the economic activities. This study is based on historical and descriptive method. It examines the development of post-crisis fiscal policies in the Balkan States that are members of the EU. In this study, public expenditure, public debt, public deficit and unemployment rate are used as the main indicators. The effects of fiscal policy will be compared between countries. This study also suggests that although the crisis resulted from financial sector, burden of crisis was transferred to public sector. Moreover, in many countries, because of its increasing deficit and debt burden, public sector became depended on financial sector that was rescued before. After the crisis, fiscal policies has led to significant economic and social costs in the Balkan States that are members of the EU.

scholarly journals IMPACT OF MACROECONOMIC INDICATORS ON PUBLIC DEBT OF SLOVAK REPUBLIC

2019 ◽  
Vol 20 (4) ◽  
pp. 734-753 ◽  
Author(s):  
Miroslava Knapková ◽  
Martin Kiaba ◽  
Samuel Hudec
Keyword(s):  
Linear Regression ◽  
Regression Model ◽  
Public Debt ◽  
Slovak Republic ◽  
Simple Linear Regression ◽  
Bond Yields ◽  
Scientific Methods ◽  
Gdp Growth Rate ◽  
Macroeconomic Indicators ◽  
Using Data

The paper focuses on impact of macroeconomic indicators on the development of public debt in Slovakia. The aim of the paper was to identify those macroeconomic indicators which influence the most significantly public debt in Slovakia and to elaborate and verify simple model for public debt prediction. Research was based on the analysis of chosen macroeconomic indicators. Selection of macroeconomic indicators resulted from theoretical knowledge and study of various research papers. Authors used several scientific methods, such as content-causal analysis, comparison, mathematical and statistical methods, including simple linear regression. Macroeconomic indicators, which authors proved to be statistically significant, are GDP growth rate, openness of economy, size of public sector, government bond yields, and unemployment rate. Authors elaborated model of the public debt development in Slovakia by using a simple linear regression model. Regression model was calculated using the data for 1995-2016. Authors confirmed correctness of the model by using data for 2017. Research was limited by the fact, that there are limited data available for analysis (time series of 22 years) because of short existence of independent Slovakia. It will be necessary to continue with the research and to verify correctness of chosen indicators in longer period.

scholarly journals Determinants of Income Tax Base in Pakistan: A Policy Review

1992 ◽  
Vol 31 (4II) ◽  
pp. 1123-1142
Author(s):  
Ahmad Khan
Keyword(s):  
Small Businesses ◽  
Income Tax ◽  
Fiscal Policies ◽  
Tax Base ◽  
Wide Range ◽  
Key Issues ◽  
Constitutional Right ◽  
The Government ◽  
Future Policy ◽  
Capital Value

This paper is divided into six parts. Following this introduction a reivew of the fiscal policies pursued by the Government of Pakistan is presented in the second section. The third section contains an assessment of the performance of different taxes while the fourth presents the reasons for low revenue performance. The key issues in tax policy reform are discussed in the fIfth section. The final section presents the recommendations for future policy directions. The taxation structure of Pakistan is both Federal and Provincial in nature. This structure was derived from the revenue-sharing provisions of the Government of India Act, 1935 and has been incorporated into successive constitutions delineating the respective revenue powers of the Federal and Provincial Governments. Under the present constitution, the Federal Government has the constitutional right to levy a wide range of direct and indirect taxes [Government of Pakistan (1973)]. Federal direct taxes comprise of personal and corporate income tax (excluding tax on agriculture income), and capital taxes (excluding tax on immovable property). Since the abolition of estate duties and gift taxes, the latter include wealth tax and Capital Value Tax. One time Capital Assets Tax on companies was levied in 1991. Income of small businesses is subject to fixed tax. Minimum tax at the rate of 0.5 percent of turnover applies to Corporate and Registered Firm taxpayers. Presumptive tax regime applies to dividends and interest, prizes on prize bonds, lotteries and raffles, payments for contract execution and supply of goods, and value of imported and exported goods [Government of Pakistan (1991)].

IDIOSYNCRATIC RISK AND ACYCLICALLY INCREASING PUBLIC DEBT

2020 ◽  
pp. 1-27
Author(s):  
INSOOK LEE
Keyword(s):  
Economic Theory ◽  
Public Debt ◽  
Idiosyncratic Risk ◽  
Fiscal Policies ◽  
Developed Economies ◽  
Debt Behavior

Observed public debt of developed economies is not only countercyclical but also acyclically increasing for fairly long peacetime. This paper proposes a politico-economic theory of public debt which coherently rationalizes both acyclical and countercyclical behaviors of public debt. An office-seeking policymaker decides fiscal policies to win over finitely-lived voters who face uninsurable idiosyncratic risk on their disposable incomes. The equilibrium public debt is (i) acyclically increasing, or (ii) countercyclical, or (iii) acyclically decreasing. An increase in the idiosyncratic risk can change public debt behavior to acyclically increasing from countercyclical, entailing rises in public debt.

“Robbery Made the Kingdom of Italy, Misery Will Unmake It”

2021 ◽  
Vol 62 (2) ◽  
pp. 369-403
Author(s):  
Maria Stella Chiaruttini
Keyword(s):  
European Integration ◽  
Public Debt ◽  
Southern Italy ◽  
Fiscal Policies ◽  
Italian History ◽  
Parliamentary System ◽  
The North ◽  
Italian Government ◽  
Public Debates ◽  
Founding Myth

Abstract This contribution analyses the nineteenth-century debate on one of the most hotly debated topics of Italian history: public debt and taxation. Starting in the 1850s, fiscal policies were weaponised by liberal nationalist elites and their opponents alike to promote their contrary worldviews by arguing over the merits of national unification and a parliamentary system on the basis of their fiscal outcomes. First Piedmont, then unified Italy, were eagerly expected by Catholics and Bourbon legitimists to default on their debts as a result of their moral and fiscal profligacy, while liberals were concerned about popular support for the national cause in a context of rising taxes. Southern Italy in particular was very vocal in denouncing its perceived fiscal mistreatment by the Italian government, an accusation the North rejected by portraying Southerners as unpatriotic tax evaders. Today, these narratives are re-emerging not only in public debates questioning the Risorgimento as the nation’s founding myth but also in the discourse about European integration.

scholarly journals Fiscal Constraints In The European Union – When More Is Less?

2015 ◽  
Vol 62 (s1) ◽  
pp. 19-28
Author(s):  
Florin-Alexandru Macsim ◽  
Florin Oprea
Keyword(s):  
Public Policy ◽  
European Union ◽  
Public Debt ◽  
Fiscal Rules ◽  
Fiscal Policies ◽  
Budget Deficits ◽  
The European Union ◽  
Fiscal Institutions ◽  
Fiscal Constraints ◽  
Key Aspects

Abstract This paper examines the implications of fiscal rules measured through the Fiscal Rules Index and fiscal institutions that supervise fiscal policies on key aspects of fiscal policies such as public debt and budget deficits. Our goal was to identify the specific links between fiscal rules, institutions and fiscal policies, to support any rethinking of public policy matters. Our results confirm that the government’s consolidated debt is influenced by both fiscal rules and institutions. Through this research we have showed that an increased number of institutions and fiscal rules is closely related to an increase in public debt levels. We explained this influence by stating that cause may consist in not having one strong and independent institution, but more institutions more or less independent that divide key responsibilities. Also our results indicate that budget deficits aren’t influenced either by supervising institutions or fiscal rules.

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