scholarly journals Economic Growth with Constraints on Tax Revenues and Public Debt: Implications for Fiscal Policy and Cross-Country Differences

2007 ◽  
Author(s):  
Joshua Aizenman ◽  
Kenneth Kletzer ◽  
Brian Pinto
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Public Debt ◽  
Tax Revenues ◽  
Country Differences ◽  
Cross Country

Broadband Diffusion and its Driving Forces

2011 ◽  
pp. 689-710 ◽  
Author(s):  
Banani Nandi ◽  
Chandana Chakraborty
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Growth And Development ◽  
Driving Forces ◽  
Demand And Supply ◽  
Economic Growth And Development ◽  
Policy Suggestions ◽  
Country Differences ◽  
Potential Impact ◽  
Cross Country

In the light of the emerging consensus on the potential impact of broadband technology on economic growth and development, this chapter analyzes the cross-country differences in growth of broadband technology by examining the key demand and supply factors driving diffusion in the observed countries. In addition, utilizing empirical evidence and country case analyses, the chapter offers tentative policy suggestions for accelerating broadband diffusion under alternative circumstances.

scholarly journals Imbalance of the public finance in the context of Keynesian and Non-Keynesian effects of fiscal policy limitation

2017 ◽  
Vol 3 (3) ◽  
pp. 27-32
Author(s):  
Joanna Stawska
Keyword(s):  
Public Finance ◽  
Economic Growth ◽  
Fiscal Policy ◽  
Public Debt ◽  
Statistical Data ◽  
Gdp Growth ◽  
The Public ◽  
Methods Of Analysis ◽  
Restrictive Policy

The purpose of this article is to point out the importance of the size of public debt and deficit in the context of Keynesian and non-Keynesian effects of fiscal policy limitation. To achieve this objective primarily were used methods of analysis of the available literature and presentation of statistical data. Considerations include, among others, the presentation of public debt and deficit in the context of economic growth. Expansionary fiscal policy often caused by economic fluctuations contributes to the deepening of public finance imbalance with frequent decline in GDP growth. The restrictive policy has an influence on improving the situation of the public finance sector in the long-term with at least moderate economic growth.

scholarly journals Are proposed African monetary unions optimal currency areas? Real, monetary and fiscal policy convergence analysis

2014 ◽  
Vol 5 (1) ◽  
pp. 9-29 ◽  
Author(s):  
Simplice Asongu
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Initial Conditions ◽  
Institutional Characteristics ◽  
Content Type ◽  
Policy Convergence ◽  
Country Differences ◽  
Cross Country ◽  
Monetary And Fiscal Policy ◽  
Policy Targets

Purpose – A spectre is hunting embryonic African monetary zones: the European Monetary Union crisis. The purpose of this paper is to assess real, monetary and fiscal policy convergence within the proposed WAM and EAM zones. The introduction of common currencies in West and East Africa is facing stiff challenges in the timing of monetary convergence, the imperative of central bankers to apply common modeling and forecasting methods of monetary policy transmission, as well as the requirements of common structural and institutional characteristics among candidate states. Design/methodology/approach – In the analysis: monetary policy targets inflation and financial dynamics of depth, efficiency, activity and size; real sector policy targets economic performance in terms of GDP growth at macro and micro levels; while, fiscal policy targets debt-to-GDP and deficit-to-GDP ratios. A dynamic panel GMM estimation with data from different non-overlapping intervals is employed. The implied rate of convergence and the time required to achieve full (100 percent) convergence are then computed from the estimations. Findings – Findings suggest overwhelming lack of convergence: initial conditions for financial development are different across countries; fundamental characteristics as common monetary policy initiatives and IMF-backed financial reform programs are implemented differently across countries; there is remarkable evidence of cross-country variations in structural characteristics of macroeconomic performance; institutional cross-country differences could also be responsible for the deficiency in convergence within the potential monetary zones; absence of fiscal policy convergence and no potential for eliminating idiosyncratic fiscal shocks due to business cycle incoherence. Practical implications – As a policy implication, heterogeneous structural and institutional characteristics across countries are giving rise to different levels and patterns of financial intermediary development. Thus, member states should work towards harmonizing cross-country differences in structural and institutional characteristics that hamper the effectiveness of convergence in monetary, real and fiscal policies. This could be done by stringently monitoring the implementation of existing common initiatives and/or the adoption of new reforms programs. Originality/value – It is one of the few attempts to investigate the issue of convergence within the proposed WAM and EAM unions.

Increasing Impact Of Stock Market Performance On Government Tax Revenues

2017 ◽  
Vol 1 (2) ◽  
pp. 333
Author(s):  
Tomáš Plíhal ◽  
Tomáš Urbanovský
Keyword(s):  
United States ◽  
Economic Growth ◽  
Fiscal Policy ◽  
Stock Market ◽  
Decomposition Analysis ◽  
The United States ◽  
Current Approach ◽  
Stock Market Development ◽  
Tax Revenues ◽  
Stock Market Performance

<p class="AbstractText">The aim of this paper is to investigate the relationship between fiscal policy, economic growth and stock market in the United States. This issue has gained importance in the last decade because the market has changed. A significance break has been detected which impacts the nature of the nexus between certain variables. The correlation between the tax revenues and the stock market has increased noticeably, encouraging the revision of the current approach to fiscal policy. This study examines relationship between three variables, namely real GDP, federal government current tax receipts and the stock market represented by the Wilshire 5000 Total Market Index. Quarterly data from 1971 to 2015 are used, divided into two subsets in the year 2000, because there is an obvious change in trend and volatility of the variables. The analysis uses ADF and KPSS unit root tests to find the order of the integration of the data. Subsequent analysis applies Johansen cointegration test, vector error correction model, Granger causality tests and variance decomposition analysis. The results demonstrate that the selected variables are cointegrated, and performance of the stock market significantly increases its influence on government tax revenues in the second period. The findings of this paper are significant for policy makers. Understanding how stock market development and economic growth influence tax revenues and vice versa is crucial for the efficient implementation of successful fiscal policy. Investors in the economy of the United States will be also able to benefit from these results which will help them to understand economic conditions and improve their investment decisions. </p>

Public debt and the limits of fiscal policy to increase economic growth

2014 ◽  
Vol 66 ◽  
pp. 1-15 ◽  
Author(s):  
Vladimir K. Teles ◽  
Caio Cesar Mussolini
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Public Debt

Empirical appraisal of fiscal stability: the case of Ghana

2015 ◽  
Vol 42 (5) ◽  
pp. 753-779
Author(s):  
Nana Kwame Akosah
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Central Bank ◽  
Public Debt ◽  
Inflation Targeting ◽  
Fiscal Sustainability ◽  
Content Type ◽  
Quarterly Data ◽  
Poor Countries

Purpose – The purpose of this paper is to appraise the stability of Ghana’s fiscal policy by assessing government’s reaction in the past to rising public debt over the last three decades. Design/methodology/approach – Using quarterly data spanning 1990Q1-2013Q2, the study evaluated the mean reverting properties of Ghana’s public debt and also estimate the fiscal policy reaction function. The complementary estimation techniques include Pesaran et al. (2001) bound testing cointegration test, differencing method and also Granger two-step cointegration methods. Findings – Using quarterly data from 1990Q1 to 2013Q2, the study found the fiscal policy to be unstable in the 1990s, necessitating the adoption of Heavily Indebted Poor Countries’ initiative in 2001. The fiscal situation however relatively stabilizes afterwards following the external debt relief in 2001. Nevertheless, the study reveals that the recent fiscal policy (since 2006) seems to be confronted with tremendous fiscal pressures, exacerbated by fiscal excesses during election cycles as well as excessive domestic and external borrowings. In addition, the economic growth-debt link was found to be weak, though debt appears to adversely affect economic growth. Research limitations/implications – The study does not thoroughly explore the possibility of non-linear relationship between public debt and primary balance. Also, the result could be different using different data frequencies. Practical implications – The state of government finance has implications on the monetary policy and economic growth prospects of an economy. As an inflation targeting central bank since 2002, a successful monetary policy implementation that reins in inflation requires fiscal policy that curtails fiscal volatilities originating from imprudent behaviour of government. Therefore, the looming fiscal pressures in recent times would impair the effective implementation of the inflation targeting framework by the central bank, and also retard economic growth as the bulk of these expenditures are usually recurrent in the case of Ghana. Originality/value – This is the first paper to employ complementary econometric techniques to empirically evaluate fiscal sustainability in Ghana.

scholarly journals Fiscal maneuver and restructuring the Russian economy

2017 ◽  
pp. 5-27 ◽  
Author(s):  
A. Kudrin ◽  
I. Sokolov
Keyword(s):  
Public Health ◽  
Economic Growth ◽  
Fiscal Policy ◽  
Public Debt ◽  
Physical Capital ◽  
The Public ◽  
Russian Economy ◽  
General Government ◽  
Fiscal Rule

The paper discusses fiscal policy parameters for the period through 2024. The suggested way to ensure long-term fiscal stability is stabilization of both the general government revenues and expenditure in percent of GDP at levels differing by the public debt service payments, and then applying a new version of the fiscal rule. Redistribution of fiscal spending from “unproductive” to “productive” areas (primarily investment in human and physical capital) is considered as a way to boost economic growth. Possible use of additional spending on education, public health, and transport system is presented, as well as optimization of expenditures in “nonproductive” areas.

scholarly journals The Impact of Fiscal Policy on the Economic Growth of Jordan

2018 ◽  
Vol 10 (10) ◽  
pp. 145
Author(s):  
Abdullah Ali Al-Masaeed ◽  
Evgeny Tsaregorodtsev
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Least Squares ◽  
Public Debt ◽  
Least Squares Method ◽  
Government Expenditure ◽  
Gdp Growth ◽  
The Impact

The present study examined the impact of fiscal policy measured by (Government expenditure, Government revenues, internal public debt, external public debt) in addition to exports and inflation factors on the Jordanian GDP growth for the period 1990-2010. The study used multiple linear regression and least squares method (OLS) to test the study hypotheses. The study found that government expenditure, exports and government revenues has a positive and significant impact on the Jordanian GDP growth, and negative and significant impact on the Jordanian GDP growth. The study found that external public debt has a negative but not significant impact on the Jordanian GDP growth.

scholarly journals FISCAL STRATEGY AS AN INSTRUMENT OF ECONOMIC GROWTH

2019 ◽  
Vol 5 (3) ◽  
pp. 213
Author(s):  
Igor Chugunov ◽  
Valentina Makohon
Keyword(s):  
Economic Growth ◽  
Fractal Dimension ◽  
Fiscal Policy ◽  
Public Debt ◽  
Developed Countries ◽  
Economic Transformations ◽  
Gdp Gap ◽  
Macroeconomic Stability

The purpose of the article is to justify the role of the fiscal strategy in ensuring macroeconomic stability and accelerating the pace of economic growth, disclose and substantiate its key objectives in the developed and transformational economies. The comparative and factor method allowed revealing the essence and role of the fiscal strategy as an instrument of economic growth, identifying peculiarities and substantiating approaches to the management of uncertainty of fiscal strategies, revealing the principles of the formation of the fiscal strategy and medium-term budget planning in Ukraine. Methodology. The substantiation of the role of the fiscal strategy in ensuring macroeconomic stability and accelerating the pace of economic growth, and definition of its key objectives are based on the generalization and systematization of the experience of countries with a developed and transformational economy. For this purpose, the analysis and evaluation of the fiscal policy were made, the peculiarities of the formation and implementation of fiscal strategies in the corresponding countries were determined. Results have shown that in developed countries, the GDP gap concept is used in order to use fiscal policy for countercyclical purposes. Budget sustainability is characterized by the ability of state and local government bodies to timely and fully finance budget expenditures and to support the share of budget deficits and public debt in the gross domestic product at an economically sound level. Budgetary stability is the constancy of budget architectonics in time. The essence of budget architectonics is the optimal ratio of budget, tax, social, monetary, and public debt components of the fiscal policy, which is a dynamic institutional process of its development and implementation in the relevant socio-economic conditions of the country’s development. At an appropriate level of budget stability, the level of fiscal burden on the economy does not increase. Fiscal equilibrium – consistency of budget revenues and expenditures. Practical implications. The benchmark of the fiscal strategy in terms of economic transformations should be to ensure macroeconomic stability and accelerate the pace of economic growth by increasing the soundness of budget architectonics. Value/originality. Strengthening the influence of endogenous and exogenous factors on the financial and economic environment of the state, and negative demographic tendencies on the development of society necessitate the development of a fiscal strategy as a dynamic self-organizing one with a fractal dimension and scale, the system of long-term financial and economic measures, goals, principles, directions, tasks that are implemented by public administration, in a multiaspect dimension: budget transformations, configurations of fiscal institutions, socio-economic transformations. The fractal dimension implies the formation of a system of long-term financial and economic measures, goals, principles, directions, tasks of the country’s fiscal policy based on the subsystems of the fiscal policy of regions with similar features, which will provide an opportunity to ensure consistency of actions of state authorities and local self-government bodies, constituents of the fiscal policy. The validity of the fiscal strategy determines the level of effectiveness of socio-economic transformations. In terms of economic transformations, budget architectonics, the institutional features of its formation are becoming increasingly difficult to assess in both developed and transformational economies.

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