Risk sharing, regional stabilization, and redistribution: the role of fiscal mechanisms in Switzerland

2020 ◽  
Author(s):  
Lars P Feld ◽  
Christoph A Schaltegger ◽  
Janine Studerus
Keyword(s):  
Federal Government ◽  
Risk Sharing ◽  
Panel Data Analysis ◽  
Pension Scheme ◽  
Income Differentials ◽  
Fiscal Autonomy ◽  
Long Run ◽  
Regional Stabilization ◽  
High Level ◽  
Government Transfers

Abstract This paper analyses the importance of fiscal mechanisms for regional stabilization and redistribution in Switzerland. Switzerland is particularly interesting in this context because it features both a high level of fiscal autonomy for Swiss cantons, and explicit fiscal transfers between the federal government and the cantons. Based on a panel data analysis, we study the redistributive and stabilizing properties of fiscal equalization transfers, federal government transfers in general, direct federal taxation, the unemployment insurance scheme, and the first pillar pension scheme. We find a combined redistributive effect of these mechanisms of about 20%. This means that long-run income differentials of 1 Swiss franc between cantons translate into differences of long-run disposable income after taxes and transfers of about 80 cents. The combined contemporary stabilization effect with respect to short-term income fluctuations amounts, at best, to 10%, which is a small effect compared to previous findings for other countries.

Infrastructure mortgage in Russia: Opportunities and prospects

2019 ◽  
pp. 114-133
Author(s):  
G. I. Idrisov ◽  
Y. Yu. Ponomarev
Keyword(s):  
Federal Government ◽  
Public Debt ◽  
Budget Deficit ◽  
Expert Assessment ◽  
Inflation Expectations ◽  
Direct Impact ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Negative Effect

The article shows that depending on the goals pursued by the federal government and the available interbudgetary tools a different design of infrastructure mortgage is preferable. Three variants of such mortgage in Russia are proposed, each of which is better suited for certain types of projects and uses different forms of subsidies. According to our expert assessment the active use of infrastructure mortgage in Russia can increase the average annual GDP growth rate by 0.5 p. p. on the horizon of 5—7 years. In the long run the growth of infrastructure financing through the use of infrastructure mortgage could increase long-term economic growth by 0.9 p. p., which in 20—30 years can add 20—30% of GDP to the economy. However, the change in the structure of budget expenditures in the absence of an increase in the budget deficit and public debt will cause no direct impact on monetary policy. The increase in the deficit and the build-up of public debt will have a negative effect on inflation expectations, which will require monetary tightening for a longer time to stabilize them.

Principles Matter

2021 ◽  
Author(s):  
Carlos A. Ball
Keyword(s):  
Federal Government ◽  
Free Speech ◽  
Separation Of Powers ◽  
Democratic Institutions ◽  
Democratic Values ◽  
Short Term ◽  
White House ◽  
Rule Of Thumb ◽  
Constitutional Principle ◽  
Long Run

Progressives who opposed the Trump administration’s policies found themselves repeatedly relying on constitutional principles grounded in federalism, separation of powers, and free speech to resist the federal government. Although many progressives had either criticized or underemphasized those principles before Trump, the principles became vital to progressive causes after Trump was elected. Using dozens of examples from the ways in which Trump abused presidential powers, this book explains how the three sets of principles can help mitigate the harms that autocratic leaders in the Trump mold can inflict on both democratic institutions and vulnerable minorities. In doing so, the book urges progressives to follow this rule of thumb in the post-Trump era: if a constitutional principle was worth deploying to resist Trump’s harmful policies and autocratic governance, then it is likely worth defending in the post-Trump era even if it makes the short-term attainment of progressive objectives more difficult. This type of principled constitutionalism is essential not only because being principled is good in and of itself, but also because being principled in matters related to federalism, separation of powers, and free speech will help both advance progressive causes over the long run and reduce the threats posed by future autocratic leaders in the Trump mold to our system of self-governance, to our democratic values, and to traditionally subordinated minorities. Going forward, progressives should promote and defend constitutional principles grounded in federalism, separation of powers, and free speech regardless of whether they have an ally or an opponent in the White House.

Determinants of Budget Deficit in Nigeria

2021 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Maimuna M Shehu ◽  
Ibrahim M Adamu
Keyword(s):  
Budget Deficit ◽  
Budget Deficits ◽  
Cointegrating Vector ◽  
Long Run ◽  
Johansen Cointegration ◽  
Short Run ◽  
Johansen Cointegration Test ◽  
The Government ◽  
One Year ◽  
High Level

This paper investigates the factors governing the determination of budget deficit in Nigeria from 1981q1 through 2016q4. Our methodology is based on Johansen cointegration and Vector Error Correction model (VECM) approach. The result from the Johansen cointegration test suggests one cointegrating vector, which indicates the existence of a long run cointegrating relationship. Evidence from the long run and short run parameters suggest that exchange rate, interest rate and one year lag of budget deficit are the major determinants of budget deficit. Therefore, to achieve a realistic fiscal surplus, the government should determine a high level of accountability in its fiscal operations. In addition, any fiscal surplus should be channeled into productive investments to diversify the economy and reduce the likelihood of potential budget deficits.

scholarly journals The cult of the equity for pension funds: should it get the boot?

2005 ◽  
Vol 4 (1) ◽  
pp. 57-85 ◽  
Author(s):  
CHARLES SUTCLIFFE
Keyword(s):  
Asset Allocation ◽  
Risk Sharing ◽  
Pension Scheme ◽  
Defined Benefit ◽  
Turn Of The Millennium ◽  
Equity Prices ◽  
Risk Return ◽  
History Of ◽  
Complete Rejection ◽  
The Uk

Over the last half century UK defined benefit pension schemes have followed the cult of the equity by investing a large proportion of their assets in equities. However, since the turn of the millennium this cult has faced two serious challenges – the halving of equity prices, and the complete rejection of equity investment by the Boots pension scheme in 2001. This paper summarises the history of the cult in the UK and the arguments advanced at the time to support its adoption. It then presents the case for the cult (excluding taxation, risk sharing and default insurance). This is followed by a detailed consideration of the validity of this case, including an examination of the relevant empirical evidence. It is concluded that, in the absence of taxation, risk sharing and default insurance, the asset allocation is indeterminate; and depends on the risk-return preferences adopted by the trustees.

scholarly journals Analysis of The Influence of Liquidity, Credit and Operational Risk, in Indonesian Islamic Bank’s Financing for The Period 2007-2013

2015 ◽  
Vol 17 (3) ◽  
pp. 279 ◽  
Author(s):  
Ousmane Diallo ◽  
Tettet Fitrijanti ◽  
Nanny Dewi Tanzil
Keyword(s):  
Credit Risk ◽  
Causal Relationship ◽  
Risk Sharing ◽  
Banking Sector ◽  
Panel Data Analysis ◽  
Banking System ◽  
Liquidity Risk ◽  
Operational Risk ◽  
Islamic Banking ◽  
Islamic Bank

The purpose of this paper is to analyze the influence of credit, liquidity and operational risks in six Indonesian’s islamic banking financing products namely mudharabah, musyarakah, murabahah, istishna, ijarah and qardh, in order to try to discover whether or not Indonesian islamic banking is based on the “risk-sharing” system. This paper relies on a fixed effect model test based on the panel data analysis method, focusing on the period from 2007 to 2013. The research is an exploratory and descriptive study of all the Indonesian islamic banks that were operating in 2013. The results of this study show that the Islamic banking system in Indonesia truly has banking products based on “risk-sharing.” We found out that credit, operational and liquidity risks as a whole, have significant influence on mudarabah, musyarakah, murabahah, istishna, ijarah and qardh based financing. There is a correlation between the credit risk and mudarabah based financing, and no causal relationship between the credit risk and musharaka, murabahah, ijarah, istishna and qardh based financing. There is also correlation between the operational risk and mudarabah and murabahah based financing, and no causal relationship between the operational risk and musharaka, istishna, ijarah and qardh based financing. There is correlation between the liquidity risk and istishna based financing, and no causal relationship between the liquidity risk and musharaka, mudarabah, murabahah, ijarah and qardh based financing. A major implication of this study is the fact that there is no causal relationship between the credit risk and musharakah based financing, which is the mode of financing where the islamic bank shares the risk with its clients, but there is an influence of credit risk toward mudarabah mode financing, a financing mode where the Islamic bank bears all the risk. These findings can lead us to conclude that the Indonesian Islamic banking sector is based on the “risk sharing” system.

scholarly journals PERMAINAN TRADISIONAL JAWA SEBAGAI STRATEGI PEMBELAJARAN BERBASIS KEARIFAN LOKAL UNTUK MENUMBUHKAN KETERAMPILAN GLOBAL DI MI/SD

2018 ◽  
Vol 2 (1) ◽  
pp. 1 ◽  
Author(s):  
Andi Prastowo
Keyword(s):  
21St Century ◽  
21St Century Skills ◽  
Basic Education ◽  
Textual Criticism ◽  
Literature Study ◽  
Cultural Elements ◽  
Long Run ◽  
Global Skills ◽  
High Level

The study of games in education is not new, from traditional games to modern website-based games have been done. Studies have even proved that traditional games have more proven value and benefits in the long run for education than modern games. However, the fact that the quality of education in various countries of the world is uneven, although they also know and have traditional games as part of its cultural elements. Like one of them can be seen in the quality of basic education in Indonesia, especially in the ability of thinking high level is still low. Moreover, in the 21st century students are required to have global skills of the 21st century. From this point the need to be studied about how the traditional Javanese games, as one of the greatest cultural heritages in Indonesia, can serve as a strategy to cultivate 21st century global skills for madrasah ibtidaiyah / primary school. This research is done by literature study with the method of textual criticism and external critic and then continued with synthesis. The findings of this study indicate that some traditional Javanese games are basically potential as a strategy to cultivate 21st century skills. This is not apart because the characteristics and form of some traditional Javanese game contains characteristics of 21st century skills that include critical thinking, communication, cooperation, and creativity.

scholarly journals THE CONCEPT OF BUILDING OF ECONOMIC ENSURING POLICY THE COMPETITIVENESS OF INNOVATIVE BUSINESSES IS FORMED AT THE MACRO AND MICRO LEVELS

2021 ◽  
Author(s):  
Iryna Zrybnieva
Keyword(s):  
Innovation Activity ◽  
Competitive Advantages ◽  
Resource Potential ◽  
Economic Entity ◽  
Marketing Orientation ◽  
Factors Influencing ◽  
Long Run ◽  
High Level ◽  
Key Aspects ◽  
Market Relations

With the development of market relations, growing uncertainty and risk, the high level of competitiveness of the enterprise largely depends on the level of its innovation activity. In this article the author described the factors influencing the formation of the competitive potential of the subjects of innovative entrepreneurship, carried out their classification. In his opinion, the competitiveness of innovative entrepreneurs depends primarily on the economic situation achieved through economic strategy (policy). The economic policy of ensuring the competitiveness of the subjects of innovative entrepreneurship is formed both at the macroeconomic and microeconomic level. At each level of management requires a special organizational and economic approach that ensures the transformation of available resources into competitive advantages through the use of certain competencies. The author concludes that the achievement of competitive advantages in the market in the future and high competitiveness of the enterprise in the long run are possible due to efficient use of resource potential, high strategic opportunities to reproduce resource potential, strategic marketing orientation of the product offer. With the growth of the dynamics of competitiveness of the studied subject of innovative entrepreneurship, it is necessary to determine its position in the internal environment, ie to identify how the current ability to compete corresponds to the opportunities present in the external environment. With declining dynamics (as an option – the lack of dynamics), including those obtained in the current assessment of competitiveness, it is necessary to first identify the reasons for the decline in the competitiveness of the subject of innovative entrepreneurship. Given that the assessment of competitiveness integrates three key aspects, the reasons, respectively, can be social, economic or technological in nature (or be characterized by a combination of them). Competitiveness as an internal mechanism of effective activity of an economic entity transforms the market into a system of factors influencing the process of competition, thereby forming competitiveness in the field of a separate competitive field.

Economic Cycles in Argentina: 1875–1990

2006 ◽  
Vol 38 (3) ◽  
pp. 549-570 ◽  
Author(s):  
ISABEL SANZ-VILLARROYA
Keyword(s):  
Aggregate Demand ◽  
Unit Root Tests ◽  
Economic Cycles ◽  
Long Run ◽  
Economic Forces ◽  
Mode Of Operation ◽  
Key Factor ◽  
Short Run ◽  
High Level ◽  
Level Of Agreement

This article analyses the short-run periods that can be derived from the GDP per capita series for Argentina between 1875 and 1990, after extracting its segmented long-run trend using time series techniques and unit root tests. It also studies the economic forces which, from the aggregate demand side, might provide an explanation for this behaviour. This mode of operation makes it possible to identify successive cycles more accurately than in previous studies. A high level of agreement is observed between the results of this study and arguments in the literature regarding the causes shaping these short-run periods: the analysis demonstrates that exports were the key factor until 1932 while after this year consumption and investment came to predominate.

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