How Individuals Respond to a Liquidity Shock: Evidence from the 2013 Government Shutdown

Scholars have recognized emotion as an increasingly important element in the reception and retransmission of online information. In the United States, because of existing differences in ideology, among both audiences and producers of news stories, political issues are prone to spark considerable emotional responses online. While much research has explored emotional responses during election campaigns, this study focuses on the role of online emotion in social media posts related to day-to-day governance in between election periods. Specifically, this study takes the 2018–2019 government shutdown as its subject of investigation. The data set shows the prominence of journalistic and political figures in leading the discussion of news stories, the nuance of emotions employed in the news frames, and the choice of pro-attitudinal news sharing.

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Efficiency Analysis of Government Subsidy and Performance Guarantee Policies in Relation to PPP Infrastructure Projects

Mathematical Problems in Engineering ◽

10.1155/2018/6196218 ◽

2018 ◽

Vol 2018 ◽

pp. 1-11 ◽

Cited By ~ 1

Author(s):

Lei Shi ◽

Yujia He ◽

Masamitsu Onishi ◽

Kiyoshi Kobayashi

Keyword(s):

Government Subsidy ◽

Performance Guarantee ◽

Infrastructure Projects ◽

Special Purpose Vehicle ◽

Performance Guarantees ◽

Sustainable Operation ◽

Integrated Policy ◽

The Government ◽

And Performance ◽

Liquidity Shock

Sustainable operation of public-private partnership (PPP) infrastructure projects that are characterized by considerable external benefits is of vital importance. However, a liquidity shock might trigger an inefficient liquidation of a project by the special purpose vehicle (SPV) and the bank, whose objectives are to maximize the profits generated by the project. This study argues that performance guarantee and subsidy policies implemented by the government play a role in encouraging socially efficient decision-making by the SPV and the bank to ensure the continuation of socially valuable projects. The results show that both government subsidy and performance guarantee policies are effective in avoiding the inefficient liquidation of PPP infrastructure projects when the external benefits are large and certain. However, a performance guarantee policy might lead to inefficient continuation when the external benefits of a project are uncertain. Finally, we discuss the possibility that an integrated policy combining performance guarantees and government subsidies improves the efficiency of a PPP infrastructure project.

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