Allocation Of Government Expenditures Research Articles

Dana otonomi khusus Papua, tingkat pembangunan daerah, dan kapasitas pajak

As an asymmetric decentralization instrument, special autonomy fund has a crucial contribution to achieve the development goals as well as being written at Law 21/2001 about Papua Special Autonomy. However, its application was not optimized enough in due to misallocation of local expenditures suited to constitutional requirements which affected to inequality of local development’s level. Although the level of development is expected to influence the local tax capacity improvement as a representative of independent and sustain funding resources. This study aims to investigate the impact of special autonomy fund to tax capacity at 40 of 42 municipalities in Papua and West Papua Province from 2010 until 2019. Using balanced panel assumption and two-stage least square (2SLS) method which expected the endogeneity on level of development variable that can be mentioned as one of taxable capacity, the result showed that there was not a simultaneity problem with any evidence said special autonomy fund effected indirectly to tax capacity. Instead, its fund had an incentive on increasing per capita income. Yet, the improvement of per capita income cannot affect the local tax capacity significantly. Several policy recommendations that can be given with this study are adjustment process in local government expenditure allocation which suited with current constitutional documents, optimization in productive sectors, also tightening and re-evaluating from the planning process until supervising and responsibility process in revenue, expenditure, administration, and institutional sides.

Point break: using machine learning to uncover a critical mass in women's representation

AbstractDecades of research has debated whether women first need to reach a “critical mass” in the legislature before they can effectively influence legislative outcomes. This study contributes to the debate using supervised tree-based machine learning to study the relationship between increasing variation in women's legislative representation and the allocation of government expenditures in three policy areas: education, healthcare, and defense. We find that women's representation predicts spending in all three areas. We also find evidence of critical mass effects as the relationships between women's representation and government spending are nonlinear. However, beyond critical mass, our research points to a potential critical mass interval or critical limit point in women's representation. We offer guidance on how these results can inform future research using standard parametric models.

Regional Expenditure Allocation Optimal Point Simulation Using Data Development Programming in Achieving a Resilient Regional Economy in East Java

This study aims to find the optimal point of the allocation of local government spending to increase economic growth in the region and create a resilient economy. The methods used are (1) clustering regional potential based on LQ and the level of pandemic impact based on the Covid Intensity Index; (2) efficiency measurement and benchmarking of local government expenditure allocation using DEA; (3) development of an alloxy optimal
 point simulation application using LP, and; (4) robustness testing using the OLS method. This study uses input data originating from realization based on the functions of 509 local governments in 2019 and 2020, HDI, PMTB, Manpower, and output in the form of GRDP growth. The results of this study show that the efficiency of local government expenditure allocation management has a positive correlation with economic growth. The results of this analysis are specific recommendations for each region in achieving the most optimal level of growth and efficiency. This simulation can provide a solution on how to manage APBD management as a government intervention to increase the economic resilience of the economy against the impact of the pandemic as well as under normal circumstances.

A model of the optimal allocation of government expenditures

AbstractGovernment expenditures can be used for various socioeconomic objectives, including public education, consumption of public goods and services, and social protection. This paper analyzes the optimal allocation of public expenditures among these competing functions. We establish an overlapping generations model with heterogeneous individuals in which the government optimally chooses income tax, transfer payment, educational spending, and public consumption. Our model characterizes the transitional dynamics and the steady state of each function with and without a pay‐as‐you‐go intergenerational contract. We also conduct a simulation illustrating that the presence of an intergenerational contract may raise public consumption and social welfare in the steady state.

The Influence Of Fiscal Policy On Agriculture Sector In Java Island

One of government interventions to encourage the improvement of agriculture sector output is through fiscal policy in the form of government spending. Total government expenditure in provincial aggregate is used as government spending. The availability of fiscal decentralization policy provides an opportunity for the provincial government to manage the government expenditure allocation. This research aims to discover the influence of fiscal policy in Java by using the government expenditure variable and to find the influence of foreign investment, domestic investment and agricultural labor absorption toward GRDP of agriculture subsectors. This research used regression analysis of cross section SUR fixed effect panel data. The results indicate the total expenditure having significant positive effect towards GRDP of agriculture subsectors are the subsectors of food crops, plantation, livestock and fishery. Forestry subsector cannot be analyzed further because the error is not normally distributed. The absorption of labor in agriculture sector has significant negative effect towards plantation and livestock subsectors. The foreign investment has significant positive effect towards livestock subsector and domestic investment has negative significant influence towards GRDP of food crops subsector. The provincial government needs to support agriculture subsectors by allocating expenditure that will increase GRDP of agriculture subsectors and increasing foreign direct investment and domestic investment to agriculture subsectors.

PENGARUH PENGELUARAN PEMERINTAH DAN TENAGA KERJA TERHADAP PERTUMBUHAN EKONOMI DI PROVINSI BANTEN

ABSTRACT Economic growth is still the main destination and an important indicator of the success of regional economic development. Banten provincial economic growth rate has fluctuated. The purpose of this study was to determine the development of local government expenditure allocation and assess their effects on economic growth in the area of Banten province. In studying the effect of economic growth analysis conducted jointly with other relevant variables, namely the government expenditure and employment. The data used are secondary data in the form of panel data within a period of nine years from 2003 to 2011. Test analysis is linear regression using the classical assumption, partial test statistic (t-test) with a degree of confidence of 95 % percent. F test and measured by the R2 test (test determinants). Results of this study have used the hypothesis that if the rise in government expenditure will increase economic growth, if the amount of labor up it will increase economic growth. The conclusion that can be drawn in this paper is that the increase in government expenditure would spur economic growth, therefore, the development expenditure is on target to be realized. The goal is to attract investors to invest their shares in Banten province, due to the increased investment will spur economic growth Banten more appropriate. As a result of the investment that goes right because construction spending targets will be additional output produced or the opening of a new business pitch, so that employment in Banten absorb. The effect can absorb the labor turnover greater capital flows so that economic growth will increase in Banten. Keywords: Economic Growth, Government Expenditure, Labor

The Effect of Corruption on Government Expenditure Allocation in OECD Countries

This paper empirically examines the effect of corruption on the allocation of government expenditures by function. Equations using pooled panel dataset for 21 OECD countries between 1998 and 2011 were tested, and the findings show that government expenditure on defense and general public services increase, while government expenditures on education, health, recreation, culture and religion decline with higher levels of corruption. This paper presents new results and new evidence on the link between corruption and allocation of government expenditures in OECD countries.

Policy Implications on Local Government Expenditure in Sri Lanka

Local governments are closer to the people especially in the context of democratic governance than other units of governments. ‘Determinants of government expenditure’ is therefore a recurring theme both in government and scientific discourse. This study intends to develop and test a comprehensive and systematic model on the allocation of government expenditures in urban councils in Sri Lanka to identify the key determinants of local government expenditure decisions. Therefore, the study considers three major perspectives, socio-economic, political and governmental and justifies the relevancy of models of expenditure determinant research. This is a research. The first premise is that local government expenditure varies on the mixture of socio-economic, political and governmental factors. More socio-economic variables in the model indicate a demand driven aspect in local government resource allocation. Local government’s tax effort is a significant fact together with financial transfers from the central government in expenditure decision-making. As policy implications participatory budgeting system and strengthening of the local revenue base are proposed. Sri Lanka Journal of Development Administration, Vol. 5, pp. 93-108, 2015

Some Thoughts on Hamill, the Two Kingdoms, and the Ethics and Logic of Higher Tax Rates and Redistribution

According to Susan Hamill, Judeo-Christian ethics call on us to raise marginal tax rates. Hamill bases this on the belief that higher taxes will yield more income redistribution to the poor and make them better off. Whether or not tax policy ought to be based on religious criteria is beyond the scope of this article. What the article argues instead is that Hamill has an imperfect understanding of both ethical reasoning and of the relationship between taxes and the welfare of the poor. The problems with her ethical reasoning start out with the canard that higher taxes represent simple self-sacrifice. This fallacy allows her to blithely disregard any ethical problems associated with the coercive nature of taxes. Hamill goes on to argue that there is no conflict between her call for higher taxation in the name of Christianity and Boyd’s call for Christians to focus on their own actions rather than on amassing power to coerce others. After considering Hamills ethical reasoning, this article points out that there is no clear positive relationship between higher tax rates and the welfare of the poor in the first place. For one thing, the actual allocation of government expenditures is influenced by a number of stakeholders and is not directly tied to current tax revenues. More importantly, higher tax rates are associated with a variety of disincentives for work and production. This may in turn slow down economic growth and thus reduce the future well-being of everyone, including the poor.

Local Government Expenditure Allocation toward Human Development Index at Jeneponto Regency, South Sulawesi, Indonesia

This research is carried out at Jeneponto regency in South Sulawesi based on the data from 1998 until 2007. We use multiple regression models to estimate and analyze the effect of government expenditure on human development index in Jeneponto. The result of this study shows that the allocation of government expenditure on education, health and infrastructure have a positive and significant effect to improve Human Development Index in Jeneponto regency during the period of investigation.

Can the Sudan Achieve the MDGs Given Its Past and Present Expenditure Allocation Patterns?

This paper is organized in six small sections. The first section discusses briefly the Millennium Development Goals (MDGs) and section two addresses the Human Development Index (HDI) for the Sudan and investigates the country’s efforts and attempts to achieve the MDGs by 2015. It analyzes the existing situation and reviews some of the Sudan’s attempts to achieve these goals. The purpose is to shed light upon the current situation of social and economic development in the Sudan and to briefly outline what is expected of the country in order to achieve the MDGs. The third section is a continuation of the analysis from the previous subsection and gives more data and updates on the Sudan’s efforts in achieving the MDGs and the major handicaps and impediments facing it. The fourth and fifth sections discuss the issues of government expenditure allocation to social services sectors generally and to health, education and water in particular. They examine the magnitudes of spending and their distribution among different services and their trends and direction. The main idea is to show how past and current government spending patterns have been affecting and will continue to affect the achievements of the MDGs Section six examines the issue of MDGs cost, especially for the education, health and water sectors. The discussion on the cost of achieving MDGs was originally done by the Joint Assessment Mission (JAM) to the Sudan in the format of matrixes of objectives and cost tables for these objectives for two phases; 2005-2007 and 2008-2011. The section examines these costing estimates for various sectors and then attempts to evaluate the potential of achieving MDGs given the historical fiscal experiences in the Sudan and the availability of budget finances to meet these objectives in the Sudan. The main point to be stressed is that little resources have been allocated to sectors influencing the achievement of the MDGs and we are arguing that if this pattern of spending continues in same manner and magnitude, there is a slim chance that the MDGs targets will be met. It is important also to mention that the analysis in this MDGs section, like other ones, is severely handicapped by a shortage of detailed and reliable data. We start with an introduction to the MDGs.

Executive Control vs. Bureaucratic Insulation: Evidence from Federal Contracting

I exploit a 2007 scandal concerning the General Services Administration (GSA) to examine whether executives can alter the bureaucratic allocation of government expenditures for electoral purposes. The GSA contracts with private vendors to provide supplies to, and acquire and maintain buildings for, other agencies. Shortly after Republican electoral losses in 2006, a White House Deputy gave a presentation to GSA political appointees identifying potentially vulnerable congressional districts. I find that vendors in mentioned Republican districts experienced unusually high contract expenditures from the GSA's Public Buildings Service following the presentation relative to unmentioned districts. This discrepancy diminished following media coverage of the scandal. I find no effect of either the presentation or media coverage on contracts signed by the agency's Federal Supply Service. Differences between the two branches suggest the extent to which the nature of an agency's tasks and constraints on its discretion can mitigate executive efforts to politicize.

Intergenerational Allocation of Government Expenditures: Externalities and Optimal Taxation

AbstractThis paper studies optimal capital and labor income taxes when the benefits of public goods are age‐dependent. Provided the government can impose a consumption tax, it can attain the first‐best resource allocation. This involves the uniform taxation of the cohorts' labor income and a zero capital income tax. With no consumption tax and optimally chosen government spending, labor income should be taxed nonuniformly across cohorts and the capital income tax should be nonzero. Deviations of the public goods from their respective optima create distortions. These affect the labor supply decisions of both cohorts and capital accumulation, providing a further reason to tax (or subsidize) capital income.

Under‐investing in public goods: evidence, causes, and consequences for agricultural development, equity, and the environment

AbstractA common factor that explains why agriculture causes too much environmental degradation, grows too slowly, and has been ineffective in reducing rural poverty is the generalized tendency by governments to under invest in public goods despite the high rates of return to such investments. A large share of rural public expenditures is deviated to private goods (mostly subsidies to the wealthy), which generally have low or even negative rates of return. Behind such an obviously aberrant choice are political economy forces; a highly unequal political lobby market leads to government policies that are biased in favor of economic elites and detrimental for both the environment and rural development. Globalization may affect this important distortion on the allocation of government expenditures in various ways. One such way is by restricting the ability of governments to repress the political mobilization of the poor to counter the almost unchallenged power of the elites in the lobby market. This may contribute toward creating conditions that are more consistent with sustainable and socially equitable development.

Distributional Effects of Public Education in an Economy with Public Pensions*

We study how the allocation of government expenditures between two major outlays—education and pay‐as‐you‐go social security—affects human capital distribution in an economy with heterogeneous agents. We consider an overlapping generations economy where the government maintains both programs, and allocates tax revenues to finance them. In our model, human capital is one of the factors of production. It is itself produced as a combined result of public inputs and private inputs. Parents' decisions to invest time and material resources in education of their children are motivated by altruism, heterogeneous in its strength across the population, which leads to heterogeneity of incomes. We investigate the effect of an increase in public funding for education on the human capital distribution. We show that in this framework, contrary to some earlier results, increased spending on public education may lead to higher inequality. Our results depend crucially on the interaction of education funding with the social security budget and on the elasticity of substitution in the learning technology.

Lobbying, the Composition of Government Expenditures, and the Politics of Fiscal Policy

This paper constructs a one sector growth model to examine the impact of political lobbying on the formation of fiscal policy. The model predicts that lobbying can induce endogenous regime switches, development traps, and a sub‐optimal allocation of government expenditures between productive and unproductive ends, leading to long run income losses in the economy. A calibrated version of the model is used to generate estimates of the dynamic social costs of lobbying by estimating the optimal savings rates necessary to induce balanced growth in the economy. Finally, the model predicts that lobbying may influence the growth of government.

Fiscal policy in a Lucasian general equilibrium modelwith productive government spending

This paper analyzes the effects of fiscal policy on the steady‐state growth rate of a two‐sectorialendogenous growth model. Our model deviates from the literature by focusing onthe linkage between government spending and financing policy due to the governmentbudget constraint, and the role of productive government expenditures on growth. It can beshown that the impacts of fiscal policies depend heavily on the allocation of governmentexpenditures. Long‐run growth is affected by macroeconomic policies only through governmentinvestments in human capital, but not through expenditures accelerating marketproduction. Therefore, an increase in human‐capital related government expendituresfinanced by higher lump‐sum taxation or income tax rate has a positive effect on the steady‐stategrowth rate. However, an increase in expenditures on government consumption andinfrastructure financed by a higher rate of income tax or/and lump‐sum taxation can substantiallyaffect steady‐state levels, but does not influence the fundamental growth rate ofthe economy.

The Political Economy of New Deal Spending: An Econometric Analysis

T HE New Deal years offer a laboratory for testing the hypothesis that political behavior a democracy can be understood as a rational effort to maximize the prospects of electoral success. This hypothesis is central to the theories of politics developed and elaborated since the publication of Downs' An Economic Theory of Democracy 1957, but systematic empirical verification has been meager.' One of the reasons for this paucity is that the United States political parties are rarely in power unambiguously, and actual policies result from the interaction of many competing objectives. But the 1930's the Democratic party had control of both houses of Congress, and during much of the period Congress was willing to follow Presidential lead on economic policy. At the same time federal spending rose to unprecedented levels, and considerable discretionary allocative authority was concentrated the executive branch. Most of the spending was carried out by new agencies under new programs which were clearly identified with the New Deal administration. At a time of grave economic distress, this Presidentially-dominated environment provided a stark simplification of the interaction between political and economic forces. This article focuses on the allocation of government expenditures among the states and argues that interstate inequalities per capita federal spending can be explained large part as the resultant of a process of maximizing expected electoral votes. Two recent articles (1969, 1970) by Leonard J. Arrington have raised this issue. Upon examination of a newlydiscovered set of figures for the years 19331939, Arrington was struck by the fact that the per capita distribution of loans and expenditures was not at all equal across the country, and furthermore that these inequalities seem perverse that they favor states with high income. In particular, the West seems to have received far more than its per capita share of benefits, while the South -far behind income received little.

PUBLIC FINANCE AND REGIONAL ACCOUNTS*

This paper discusses the problems that arise in the regional allocation of public sector accounts. These problems arise mainly in connection with the regional allocation of government expenditures on a governing rather than a procurement basis, and in the derivation of a meaningful surplus or deficit. The latter in turn requires an examination of the real geographic incidence of government revenues—to avoid, for instance, the assignment of the whole tobacco tax to Virginia and North Carolina. The use of a procurement basis for government product and the real geographic distribution of direct tax incidence for government revenue would produce a more complete and meaningful regional surplus or deficit measure, and gross regional products will not be as subject to spurious inter‐regional variation.