scholarly journals China's Gradualistic Economic Approach and Financial Markets

2017 ◽  
Vol 107 (5) ◽  
pp. 608-613 ◽  
Author(s):  
Markus K. Brunnermeier ◽  
Michael Sockin ◽  
Wei Xiong
Keyword(s):  
Financial Markets ◽  
Time Inconsistency ◽  
Economic Approach ◽  
Policy Changes ◽  
The Government ◽  
Future Policy ◽  
Private Actors

China's gradualistic approach allowed the government to learn how the economy reacts to small policy changes, and to adjust its reforms before implementing them in full. With fully developed financial markets, however, private actors may front-run future policy changes, making it impossible to implement policies gradually. With financial markets, the government faces a time-inconsistency problem. The government would like to commit to a gradualistic approach, but after it observes the economy's quick reaction, it has no incentive to implement its policies in small steps.

scholarly journals Application of a New Economic Approach to Assessment and Management of Industrial Enterprises

2020 ◽  
Vol 11 (1) ◽  
Author(s):  
Oksana Roy
Keyword(s):  
Financial Markets ◽  
Severe Depression ◽  
Economic Potential ◽  
Economic Approach ◽  
Human Needs ◽  
Industrial Enterprises ◽  
Management Processes ◽  
The Government ◽  
Market Relations ◽  
Conceptual Foundations

The accelerating processes of globalization are accompanied by increasing instability of financial markets, increasing complexity of management processes, and recognition of the need to move to sustainable development as the only possible way to preserve and strengthen the current and future global economic potential to meet human needs and aspirations. The dynamic development and the specifics of the transition to market relations have identified a qualitatively new layer of problems in formation, transformation and management of property in Russian enterprises. An urgent problem is development of appropriate conceptual foundations for the interconnected development of the theory of evaluation and management of industrial enterprises. The way out for strategic sectors from the severe depression, the pursuit of innovative transformations, the development and implementation by the government of national projects proves the significance and the need of studying the development conditions, materiality and forms of managing industrial enterprises, as well as the need for continuous development of this management system.

Carbon Taxes and Innovation without Commitment

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Rolf Golombek ◽  
Mads Greaker ◽  
Michael Hoel
Keyword(s):  
New Technologies ◽  
Carbon Tax ◽  
Time Inconsistency ◽  
Climate Mitigation ◽  
Carbon Taxes ◽  
Mitigation Policy ◽  
Tax Rate ◽  
The Government ◽  
Future Policy ◽  
Lack Of Commitment

Abstract Climate mitigation policy should be imposed over a long period, and spur innovation of new technologies in order to make stabilization of green house gas concentration economically feasible. The government may announce current and future policy packages that stimulate current R&D in climate-friendly technologies. However, once climate-friendly technologies have been developed, the government may have no incentive to implement the pre-announced future policies, that is, there may be a time inconsistency problem. We show that if the government can optimally subsidize R&D today, there is no time inconsistency problem. Thus, lack of commitment is not an argument for higher current R&D subsidies than the first-best subsidy. If the offered R&D subsidy is lower than the optimal subsidy, the current (sub-game perfect) carbon tax rate exceeds the first-best carbon tax rate.

Volatility Transmission in Indian Banking Sector

2019 ◽  
Vol 118 (7) ◽  
pp. 161-165
Author(s):  
Cyano Prem ◽  
Dr M. Babu ◽  
C. Hariharan ◽  
R. Muneeswaran
Keyword(s):  
Financial Markets ◽  
Banking Sector ◽  
Bad News ◽  
Private Bank ◽  
Volatility Transmission ◽  
The People ◽  
New Information ◽  
High Volatility ◽  
The Government ◽  
Awareness Programme

Any new information about the economy is transmitted fast and it may influence the financial markets, positively or negatively. The present study used GARCH (1, 1) and EGARCH models, to investigate the volatility of Indian banking sectors indices, namely, Nifty PSU Index and Nifty Private Bank Index of NSE India Ltd. The result of the study confirmed that the high volatility was found in both the bank indices. At the same time, negative information about Indian economics did affect the PSU and Private Bank Sector indices during the study period. Finally, the study concluded that bad news travels fast and it increased volatility more than good. Hence the Government should give more information and awareness programme to the people before the implementation of any economic policy.

scholarly journals Does Norwegian alcohol policy favour lower alcohol content beverages? A historical overview

2012 ◽  
Vol 29 (1) ◽  
pp. 7-23
Author(s):  
Øyvind Horverak
Keyword(s):  
Alcohol Policy ◽  
Alcoholic Beverages ◽  
Historical Overview ◽  
Policy Changes ◽  
Alcohol Content ◽  
Wine Consumption ◽  
Main Thesis ◽  
Lower Alcohol ◽  
Cultural Sphere ◽  
The Government

Aims A historical overview of the relation between Norwegian alcohol policy and problems caused by different alcoholic beverages during the last two centuries. Results & Conclusions The main thesis is that the concrete shaping of Norwegian alcohol policy changes according to the beverage which is supposed to cause most harm. Traditionally, this beverage has been liquor, and the Norwegian alcohol policy has mainly been occupied with the evils of spirits. Problems following from the consumption of beer and wine have been seen as relatively modest. At times, these weaker beverages have been viewed as a temperate alternative to the stronger spirits. After WWII, the government chose a policy which tended to favour wine over liquor and beer. Wine consumption was related to a somewhat more sophisticated and cultural sphere than the rude consumption of beer and spirits.

Financial incentives and psychiatric services in Australia: an empirical analysis of three policy changes

2007 ◽  
Vol 2 (1) ◽  
pp. 7-22 ◽  
Author(s):  
D. P. Doessel ◽  
Roman W. Scheurer ◽  
David C. Chant ◽  
Harvey Whiteford
Keyword(s):  
Policy Change ◽  
Financial Incentives ◽  
Psychiatric Services ◽  
Separate Determination ◽  
Policy Changes ◽  
Special Cases ◽  
Medicare Benefit ◽  
Commonwealth Government ◽  
The Government ◽  
New Item

Australia has a national, compulsory and universal health insurance scheme, called Medicare. In 1996 the Government changed the Medicare Benefit Schedule Book in such a way as to create different financial incentives for consumers or producers of out-of-hospital private psychiatric services, once an individual consumer had received 50 such services in a 12-month period. The Australian Government introduced a new Item (319) to cover some special cases that were affected by the policy change. At the same time, the Commonwealth introduced a ‘fee-freeze’ for all medical services. The purpose of this study is two-fold. First, it is necessary to describe the three policy interventions (the constraints on utilization, the operation of the new Item and the general ‘fee-freeze’.) The new Item policy was essentially a mechanism to ‘dampen’ the effect of the ‘constraint’ policy, and these two policy changes will be consequently analysed as a single intervention. The second objective is to evaluate the policy intervention in terms of the (stated) Australian purpose of reducing utilization of psychiatric services, and thus reducing financial outlays. Thus, it is important to separate out the different effects of the three policies that were introduced at much the same time in November 1996 and January 1997. The econometric results indicate that the composite policy change (constraining services and the new 319 Item) had a statistically significant effect. The analysis of the Medicare Benefit (in constant prices) indicates that the ‘fee-freeze’ policy also had a statistically significant effect. This enables separate determination of the several policy changes. In fact, the empirical results indicate that the Commonwealth Government underestimated the ‘savings’ that would arise from the ‘constraint’ policy.

Norway’s new government will favour continuity

2021 ◽  
Keyword(s):  
Financial Markets ◽  
Climate Policy ◽  
Energy Prices ◽  
Sovereign Wealth Fund ◽  
Content Type ◽  
The Core ◽  
Eu Membership ◽  
The Government

Significance The Labour, Centre and Socialist Left parties together hold a majority of parliamentary seats. Labour and Centre seem certain to form the core of the government; they might rule as a minority if they cannot bridge disagreements with the more radical Socialist Left over tax and climate policy. Impacts The election represents the best result for anti-EEA parties since Norway’s 1994 vote to reject EU membership. A sustained downturn in global financial markets could reduce the spending resources of Norway’s huge sovereign wealth fund. European demand for Norwegian gas will increase amid rising energy prices across Europe, partially caused by reduced production.

Financing UK Pensions

2006 ◽  
Author(s):  
John Hills
Keyword(s):  
Life Expectancy ◽  
Occupational Pension ◽  
Defined Benefit ◽  
Occupational Pensions ◽  
The Past ◽  
The Government ◽  
Future Policy ◽  
Set Up ◽  
Defined Benefit Pensions

A key feature of the pension challenges currently facing Britain is the decline of the system of occupational pensions, particularly the decline of defined-benefit pensions. Here, it is often argued that the villain has been the government (in fact a succession of governments). In this view, over the past decades successive governments have delivered a catalogue of regulation and legislation that, though often well intentioned, has ultimately worked to the detriment of occupational pension provision. Alternatively, one might argue that we could have seen it all coming. It is important that future policy should be set up in a way that is sustainable and robust enough to cope with the huge uncertainty around the increase in life expectancy which we are hoping for. This chapter examines why, and when, things began to go wrong with the financing of British pensions.

THE ANALYSIS OF FUTURE POLICY CHANGES

1981 ◽  
pp. 73-100
Author(s):  
KATHARINE L. BRADBURY ◽  
ANTHONY DOWNS ◽  
KENNETH A. SMALL
Keyword(s):  
Policy Changes ◽  
Future Policy

What Explains Credible Apologies? A Comment on Yap' ‘Non-Electoral Responsiveness Mechanisms’

2004 ◽  
Vol 34 (2) ◽  
pp. 368-371
Author(s):  
ROBERT C. LOWRY
Keyword(s):  
Causal Relationship ◽  
Economic Performance ◽  
Economic Prosperity ◽  
Recent Issue ◽  
Ceteris Paribus ◽  
Strike Activity ◽  
The Government ◽  
Private Actors ◽  
Joint Occurrence ◽  
Monitoring Activity

In a recent issue of this Journal Professor Yap asks whether and how governments in what she calls ‘less-democratic’ countries, that is those where elections are uncompetitive due to a lack of democratic safeguards or opposition parties, are held accountable for the effects of their policies on economic performance. She argues that governments in these countries have an interest in avoiding strife and inducing private actors to provide resources necessary for economic prosperity. Because of this, ‘when their economies are performing less than optimally, these governments tend to offer credible apologies in the same year to attenuate the potential labour disquiet and loss in production investment.’ Yap develops the concept of a credible apology as the joint occurrence of punishment of responsible actors or reparations to injured parties, and an increase in monitoring activity by non-government actors. She then presents evidence for South Korea for 1964–87 and Singapore and Malaysia for 1966–94 showing that, ceteris paribus, the tendency of production investment to decrease and strike activity to increase in years with high unemployment is offset if the government makes a credible apology.Yap is quite clear that she assumes a causal arrow running from poor economic performance to credible apologies. Indeed, such a causal relationship is necessary for the concept of accountability; the events that Yap classifies as credible apologies must be made in response to unsatisfactory economic performance in order for us to say that these governments are being held (or are holding themselves) accountable for the consequences of their policies.

Optimal Retirement Policies with Present-Biased Agents

2020 ◽  
Author(s):  
Pei Cheng Yu
Keyword(s):  
Private Information ◽  
Hyperbolic Discounting ◽  
Time Inconsistency ◽  
Retirement Savings ◽  
Present Bias ◽  
Optimal Mechanism ◽  
Savings Accounts ◽  
The Government ◽  
Social Security Benefits ◽  
Retirement Policies

Abstract This paper incorporates quasi–hyperbolic discounting into a Mirrlees taxation model to study the design of retirement policies for present-biased agents. I show that the government can improve the screening of productivity by exploiting time inconsistency. This is done by providing commitment to sophisticated agents and taking advantage of the incorrect beliefs of naïve agents. This can be achieved even if the degrees of present bias and sophistication are private information. I also demonstrate how the government can implement the optimal mechanism using retirement savings accounts and social security benefits.

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