A Rule-based Time-consistent Path of Debt Use for Subnational Governments – Debt as a Countercyclical Fiscal Policy Tool

2013 ◽  
Author(s):  
Yilin Hou
Keyword(s):  
Fiscal Policy ◽  
Rule Based ◽  
Policy Tool ◽  
Subnational Governments

Party, Ideology, and Deficits: Provincial Fiscal Policy and the Cameron Thesis, 1966–2009

2014 ◽  
Vol 47 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Christopher A. Simon ◽  
Raymond Tatalovich
Keyword(s):  
Fiscal Policy ◽  
Large Body ◽  
Public Spending ◽  
David Cameron ◽  
Subsequent Research ◽  
Party Ideology ◽  
Western European ◽  
Political Variables ◽  
Subnational Governments

AbstractIn a 1985 publication David Cameron reported that historically leftist governments had governed with smaller deficits than rightist governments. The party ideology variable was incorporated into a large body of subsequent research, mainly by economists, to study the growth of public spending and indebtedness. Most agreed with Cameron; some did not. Virtually all studies focused on western European nations (but not subnational governments). This study analyzes provincial deficits or surpluses over the period 1966 to 2009 and determines that rightist parties, despite controls for economic and other political variables, have lower budgetary deficits, a finding which contradicts Cameron but is consistent with five previous studies of provincial spending in Canada.

Rule-Based Fiscal Policy in India: An Assessment

2016 ◽  
Vol 1 (1) ◽  
pp. 20
Author(s):  
Ranjit Kumar Pattnaik ◽  
Anshul Verma
Keyword(s):  
Fiscal Policy ◽  
Rule Based

Veto Players and the Choice of Monetary Institutions

2002 ◽  
Vol 56 (4) ◽  
pp. 775-802 ◽  
Author(s):  
Mark Hallerberg
Keyword(s):  
Fiscal Policy ◽  
Exchange Rates ◽  
Central Government ◽  
Central Banks ◽  
Veto Players ◽  
Coalition Governments ◽  
Systems Identification ◽  
And Control ◽  
Flexible Exchange Rates ◽  
Subnational Governments

I argue that two types of veto players matter in the choice of monetary institutions: party veto players and subnational governments, which are strong in federal systems but weak in unitary systems. A crucial issue is whether voters can readily identify the manipulation of the economy with party players. A second issue concerns the national party veto player's ability to control either fiscal or monetary policy. In one-party unitary governments identification and control are clear; parties where such governments are common prefer flexible exchange rates and dependent central banks. In multiparty coalition governments in unitary systems, identification is traditionally difficult, and the ability to target benefits to specific constituencies under fiscal policy makes fiscal policy autonomy more attractive for coalition governments. Such governments prefer central banks that are politically independent but that finance government debt. Under federalism, parties that constitute the central government have less control over fiscal policy and they prefer flexible exchange rates. Subnational governments do not support a dependent central bank that gives more power to the central government.

scholarly journals Zakat versus Taxation as Islamic Fiscal Policy Tool

2021 ◽  
Vol 3 (1) ◽  
pp. 37
Author(s):  
Samsad Jahan
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Fiscal Policy ◽  
Social Responsibility ◽  
Poverty Alleviation ◽  
Socially Responsible ◽  
Policy Tool

Linking Islamic instrument like zakah with social responsibility and economic growth is an area which is often unspoken. As such, this research intends to find out the potential challenges zakah can face while it is used as fiscal policy tool which has link with Islamic socially responsible financing to economic growth to poverty alleviation mentioning few. Though many Muslim based countries using Tax as an alternative tool for government earning, zakah as a tool has broader spectrum from having impact on economic development to the role as an instrument for Islamic socially responsible finance. This research uses qualitative paradigm to analyze the literature. The research is based on a desk-based research. The findings of this research prove that there are challenges to establish zakah as prescribed in the revealed text which can be minimized through different actions. It is projected that properly executed plan to manage zakah could be used as an instrument of fiscal policy as well as an Islamic socially responsible financing instrument.

scholarly journals ZAKAT SEBAGAI PENGURANG PAJAK DAN PENGARUHNYA TERHADAP PENERIMAAN PAJAK DI SEMENANJUNG MALAYSIA

INFERENSI ◽  
2013 ◽  
Vol 7 (1) ◽  
pp. 1 ◽  
Author(s):  
Eko Suprayitno ◽  
Radiah Abdul Kader ◽  
Azhar Harun
Keyword(s):  
Fiscal Policy ◽  
Panel Data ◽  
Income Tax ◽  
Islamic Law ◽  
Fixed Effect Model ◽  
Tax Revenue ◽  
Policy Tool ◽  
Effect Model ◽  
Tax Payers

This paper attempts to examine the role of zakat administration policy in Malaysia and its impact on the tax revenue in Malaysia Peninsula. Zakat administration issues pertaining to Islamic law but traditions remain under the jurisdiction of states. The practice of zakat is based on the Shariah while the taxation practice is based on the Malaysian Income Tax Act, established in 1967. Zakat is used as a fiscal policy tool whereby income tax payers were given 100 per cent rebates on zakat that they paid. The study uses panel data of states in Malaysia Peninsula and the analysis is done by using the fixed effect model. The study finds that zakat has a positif impact and significant on tax revenue.

scholarly journals A Rule-Based Medium-Term Fiscal Policy Framework for Tanzania

2009 ◽  
Vol 09 (244) ◽  
pp. 1 ◽  
Author(s):  
Daehaeng Kim ◽  
Mika Saito ◽  
◽  
Keyword(s):  
Fiscal Policy ◽  
Policy Framework ◽  
Medium Term ◽  
Rule Based

scholarly journals Fiscal Rules for Natural Disaster- and Climate Change-Prone Small States

2021 ◽  
Vol 13 (6) ◽  
pp. 3135
Author(s):  
Ryota Nakatani
Keyword(s):  
Climate Change ◽  
Fiscal Policy ◽  
Natural Disasters ◽  
Natural Disaster ◽  
Fiscal Sustainability ◽  
Fiscal Rules ◽  
Policy Framework ◽  
Small States ◽  
Rule Based ◽  
Fiscal Rule

How should small states formulate a countercyclical fiscal policy to achieve economic stability and fiscal sustainability when they are prone to natural disasters, climate change, commodity price changes, and uncertain donor grants? We study how natural disasters and climate change affect long-term debt dynamics, and we propose cutting-edge fiscal policy rules. We find the primacy of a recurrent expenditure rule based on non-resource and non-grant revenue, interdependently determined by government debt and budget balance targets with expected disaster shocks. This innovative fiscal rule is classified as a natural disaster-resilient fiscal rule, which comprises a plethora of new advantages compared to existing fiscal rules. This new type of fiscal rule can be called as the third-generation fiscal rule. It encompasses natural disasters and climate change, uses budget data only, avoids the need for escape clauses, and operates on a timely basis. Our rule-based fiscal policy framework is practically applicable for many developing countries facing an increasing frequency and impact of devastating natural hazards, and climatic change.

scholarly journals INFLATION STABILIZATION AND DEFAULT RISK IN A CURRENCY UNION

2018 ◽  
Vol 22 (7) ◽  
pp. 1790-1807 ◽  
Author(s):  
Eiji Okano ◽  
Masashige Hamano
Keyword(s):  
Fiscal Policy ◽  
Default Risk ◽  
Currency Union ◽  
Stabilization Policy ◽  
Tax Rate ◽  
Policy Tool ◽  
Inflation Stabilization ◽  
Optimal Fiscal Policy ◽  
Dynamic Stochastic ◽  
Monetary And Fiscal Policy

By developing a class of dynamic stochastic general equilibrium models with nominal rigidities and assuming a two-country currency union with sovereign risk, we show that there is not necessarily a trade-off between the prevention of default risk and stabilizing inflation. Under optimal monetary and fiscal policy, comprising a de facto inflation stabilization policy, the tax rate as an optimal fiscal policy tool plays an important role in stabilizing inflation, although not completely because of the distorted steady state. Changes in the tax rate to minimize welfare costs via stabilizing inflation then improve the fiscal surplus, and because of this and the incompletely stabilized inflation, the default rate does not increase as much.

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