Expenditure Composition Research Articles

Do Medicaid Expenditures Increase After Adults Exit Permanent Supportive Housing?

The effects of homelessness and permanent supportive housing (PSH) on healthcare utilization have been well documented. Prior research on the association between PSH entry and Medicaid expenditures indicates that such housing support could result in savings to Medicaid programs; however, whether changes occur in healthcare use and expenditures after individuals exit PSH is unknown. If efficiency gains from PSH persist after the individual leaves, the savings to payers such as Medicaid may continue even after the costs to provide housing for a PSH recipient have ended. We used linked Medicaid and housing data from Pennsylvania to examine changes in the level and composition of Medicaid expenditures for 580 adult enrollees during the 12 months before and after exit from PSH, adjusting for relevant covariates. In adjusted analyses, we estimated that monthly spending declined by $255.96 (95% CI: $358.70, $154.40) in the first quarter post exit and by $271.50 (95% CI: $394.30, $146.50) in the fourth quarter. Our findings suggest that PSH may have sustained budgetary benefits to state Medicaid agencies even for beneficiaries exiting the program. However, more research is needed to understand whether these reductions in expenditures last beyond 12 months and do not reflect underuse of care that may be important for managing health over the long term.

Pre-electoral fiscal policies and opportunistic spending: the case of the recently decentralised Macedonian local governments

ABSTRACT The purpose of this study is to test the relationship between local elections and local government budgets. Using dataset of all Macedonian municipalities for the period 2007-2015, this study examines whether the overall spending and the composition of local government expenditures are systematically manipulated just before elections. The results show that spending during the pre-election period shifts toward more desirable categories such as permanent and temporary employment, capital projects, and individual transfers and subsidies. Very few studies relate pre-electoral fiscal manipulation to clientelistic linkages. This paper fills the void by adding empirical evidence from a transitional democracy.

Information Content Assessment of the Federal Budget and the Budget Process in the Russian Federation

This article is devoted to the results of a statistical study of the composition of federal budget expenditures (the object of the study) from the standpoint of assessing its information content (the subject of the study). In the opinion of its authors, the issues of information content of budget decisions remain out of due attention not only from the participants of the budget process, but also in the practice of public administration in general. Therefore, the purpose of this study is to form scientifically based tools for assessing the information content, determining its quantitative indicators, clarifying the nature, hidden features and balance in the distribution of federal budget expenditures.Materials and methods. The analysis of the composition parameters of federal budget expenditures was carried out on the basis of statistical data of the Federal Treasury for 2014-2020. The theoretical foundations and research methods are developed based on the authors’ preferences regarding the results of conceptual and applied developments of domestic scientists in the field of synergetic information theory, structural analysis of systems, and modular theory of society. Quantitative methods of processing the initial data, tabular and graphical methods of visualizing the results of the study were used. Standard Microsoft Office application software packages were used to solve the research tasks.Results. Indexes of information content of the multicomponent systems’ composition and algorithms for their calculations are formed. Quantitative criteria are determined and a model for optimizing the composition of federal budget expenditures is presented. The comparison of actual and model indexes of the information content is presented as a way to adjust priorities in the composition of federal budget expenditures; as a way to develop tactics and strategies for the transition from the actual parameters of the expenditures’ composition to the “best” distribution, which is described by a quantitative model of the optimal combination of the scales of its components. Retrospective optimization options based on the results of the execution of expenditures in 2020 and promising options for optimizing the distribution of federal budget expenditures in 2022-2024 have been established.Conclusion. Assessment of the information content and optimization of the components’ scale of the budget expenditures’ composition are recognized as elements of management of the distribution of public resources in the budget process, ways to ensure control over the effectiveness of budget decisions and can be useful for participants in the budget process both at the stage of formation and at the stage of execution of budget expenditures.

Public expenditure and human development in Brazilian municipalities

Purpose: This study examines the relationship between the structure of public expenditure composition in Brazilian municipalities governments and the local human development in the period from 2005 to 2016.
 Methodology: Hypothesis testing was used to analyze the relationship between public spending in municipalities, which were categorized according to their spending indexes (SI), and the Índice Firjan de Desenvolvimento Municipal (Firjan Municipal Development Index; IFDM), a proxy for human development, based on the concept proposed by Sen (1999). Therefore, data from all 5,570 Brazilian municipalities were used, treated in an aggregated form using Data Panel analysis and Quantile Regression to more comprehensively address the heterogeneity of Brazilian municipalities.
 Results: The results make possible to infer that the changes in the public expenditure composition did not produce a striking improvement to the population’s well-being. It is evident that despite the maintenance of social policies due to strong regulation by the central government, spending, although increasing in these areas, has not been producing the desired effects in improving the population's well-being indicators.
 Contributions of the Study: This research contributes to academia and society, as it shows that for Brazilian municipalities to make effective strides toward growing and toward sustainable human development indicators in a more incisive way, the hegemonization of the public expenditure policy requires adjustments. These adjustments could consider the idiosyncratic conditions of the different stages of human development in the subnational units.

Relevansi Skala Optimum Belanja Pemerintah terhadap Pertumbuhan Ekonomi dan Financial Distress Kabupaten/Kota di Provinsi Maluku

This research attempts to evaluate the impact of optimum government size to economic growth and the government financial distress in districts of Maluku. The government size would intuitively drive economic growth. Especially in the eastern hemisphere of Indonesia which has lower economic activity compared to other regions. Furthermore, the bigger government size would increase the government's financial distress, since the income could not cover the mandatory spending and long term liabilities. The evidence of this research shows that the government size does not significantly impact both the per capita regional GDP and financial distress of the districts in Maluku. However, the level of private sector investment is significant in forming the per capita regional GDP and the level of liabilities would affect the level of government financial distress. The results also demonstrate the importance of government expenditure composition, especially mandatory spending, that may be considered as the significant factors that impact overall economy and the local government financial condition.

Longitudinal analysis of resting energy expenditure and body mass composition in physically active children and adolescents

BackgroundMonitoring body composition and changes in energy expenditure during maturation and growth is significant, as many components can influence body structure in adulthood. In the case of young players, when these changes can influence their strength and power, it seems to be equally important. Our aim was to examine whether resting energy expenditure (REE) and body composition would change after 10 months from baseline in physically active children and adolescents.MethodsWe obtained data from 80 children and adolescents aged 9 to 17 years at two measurement points: the baseline in September 2018 and after 10 months in July 2019. The study was carried out using a calorimeter (Fitmate MED, Cosmed, Rome, Italy), a device used to assess body composition using by the electrical bioimpedance method by means of a segment analyzer (TANITA MC-980). The Student’s t-test and linear regression analysis were used. Using the stepwise forward regression procedure, the selection of factors in a statistically significant way that describes the level of REE was made.ResultsWe noticed that REE was not significantly different between baseline (1596.94 ± 273.01 kcal) and after 10 months (1625.38 ± 253.26 kcal). When analyzing the difference in REE between studies girls, we found body height as a significant predictor. The results of our study show a negative relationship between growth and REE. Differences between sexes and age in REE between baseline and after 10 months were not significant.ConclusionsOur study involving physically active children and adolescents, which used repeated objective measures and longitudinal statistical modeling to analyze them, was unable to demonstrate any interaction between body weight change, body composition measurements, and REE.

Public Expenditure and Green Total Factor Productivity: Evidence from Chinese Prefecture-Level Cities.

Whilst effective public expenditure policies are essential for transforming the traditional factor-driven economy into a green and innovation-driven economy, the impacts of public expenditure’s size and composition on green economic development have not been comprehensively investigated. This paper attempts to fill this research gap. Based on the data of Chinese prefecture-level cities from 2010 to 2018, we first measure green total factor productivity (GTFP), the proxy variable for green development, and briefly analyze its spatial-temporal trends. Then, using the dynamic panel models, dynamic panel mediation models, and dynamic panel threshold models, we evaluate how public expenditure affects GTFP. The main findings are fourfold: (1) there is a significant inverted U-shaped relationship between the expenditure size and GTFP. (2) The expansion of social expenditures and science and technology (S&T) and environmental protection expenditures play an important role in stimulating green growth, while economic expenditures and administrative expenditures have adverse effects. (3) Public expenditure mainly promotes green development through four channels: human capital accumulation, technological innovation, environmental quality improvement, and labor productivity increase. (4) The expenditure composition influences the turning point of the inverted U-shaped relationship. Based on these findings, we propose some targeted policy suggestions to promote green development.

Classification of the NATO Countries with Respect to Defence Spending Patterns: An Unsupervised Clustering Approach

Although there has been growing interest in defence expenditure studies in recent years, no necessary attention has been paid in literature to empirical analysis of composition of defence expenditure. However, limited number of non-empirical studies state that understanding composition of military budget of a country reveals remarkable insights about its economic condition and defence strategy policy choices in the future. The purpose of this study has been to gain further understanding of basic differences in defence budget allocation between NATO ally counties. To fulfil this aim, K-Means clustering approach is used and three main groups are found with the dataset of NATO that formed by four main defence expenditure categories. Moreover, the reliability of the results has been proven by additional analysis such as hierarchical clustering and K-Medoids methods. Empirical findings state that NATO countries could be categorised into three groups which are named as equipment intense expenditure cluster, personnel intense expenditure cluster, and balanced expenditure cluster.

Quantifying Farm Household Resilience and the Implications of Livelihood Heterogeneity in the Semi-Arid Tropics of India

The vast majority of farmers in the drylands are resource-poor smallholders, whose livelihoods depend heavily on their farming systems. Therefore, increasing the resilience of these smallholders is vital for their prosperity. This study quantified household resilience and identified livelihoods and their influence on resilience in the semiarid tropics of India by analysing 684 households. A resilience capacity index was devised based on the composition of household food and non-food expenditure, cash savings, and food and feed reserves. The index ranged from 8.4 reflecting highly resilient households with access to irrigation characteristics, to −3.7 for households with highly limited resilience and low household assets. The livelihoods were identified through multivariate analysis on selected socioeconomic and biophysical variables; households were heterogeneous in their livelihoods. Irrigated livestock and rainfed marginal types had the highest and lowest resilience capacity index with the mean score of 0.69 and −1.07, respectively. Finally, we quantified the influence of livelihood strategies on household resilience. Household resilience was strengthened by the possession of livestock, crop diversification and access to irrigation. Low resilience is predominantly caused by low household assets. The resilience capacity index and derived livelihood strategies helps to understand the complexity of household resilience, and will aid in targeting technology interventions for development.

Switch from public to private retail pharmaceutical expenditures: evidence from a time series analysis in Italy

ObjectivesTo analyse trajectories of retail pharmaceutical expenditures from 2010 to 2019 in Italy to investigate whether there was a switch from public to private expenditure, how the composition of private...

Women and local public finance

Does the gender of the mayor affect the size and composition of public expenditures and revenues? Using a sharp regression discontinuity design in close mixed gender races for the election of mayors in Italian municipalities in the period 2000–2015, we find no significant differences in policies implemented by male and female mayors. We explore whether the result masks heterogeneity by gender composition of the local government and by electoral rules according to which a mayor is elected. We find some evidence that female mayors devote a larger share of spending to the environment when there are more women in the municipal council, whereas they reduce the amount of resources going to social spending under the run-off relative to the single round system.

Corruption and distortion of public expenditures: evidence from Africa

This study investigates the effect of corruption on the trade-off between capital and current expenditures in a panel of 48 African countries over the period 2000–2016. Based on statistical yearbooks, we compile disaggregated data on public finances for African countries and find that a high prevalence of corruption distorts the composition of public expenditures at the expense of the share of capital expenditure. Specifically, an increase in corruption by one standard deviation is associated with a decrease in the proportion of capital expenditure from 29 to 18%. The results are robust to various specifications and estimation methods, including the fixed effects and instrumental variables approach. The supportive argument demonstrates that it seems more beneficial for corrupted bureaucrats to manipulate public spending in favor of current rather than capital expenditures. The latter relies on formal and traceable procedures, whereas current expenditure is known to be more open to the use of discretionary allocation.

Fiscal Decentralization and the Composition of Local Government Expenditure: Evidence from South Korea

The implicit idea underlying theories of fiscal federalism is that fiscal decentralization can change the composition of government expenditure. That is, regardless of whether decentralization enables governments to more readily reflect citizen preferences regarding spending categories or fosters a race to the bottom with reduced taxation and public service levels, change in the composition of government expenditure may ensue. This study indirectly tests the impact of decentralization with respect to allocative efficiency by examining the relationship between fiscal decentralization and expenditure composition. Utilizing data from 224 local governments in South Korea over the period 2008–2018, the study finds that fiscal decentralization exerts downward pressure on welfare expenditure and that it tends to shift spending from the current to the capital account. Specifically, it finds that it is mainly revenue-side decentralization that affects the allocation of government expenditure.

ESSENCE AND ROLE OF STATE EXPENDITURES IN REGULATING THE DISTRIBUTION OF THE POPULATION’S INCOME

Purpose. The aim of the article is to generalize the theoretical approaches to determining the essence, classification and composition of state expenditures and substantiation of their role and mechanism in regulating the distribution of population income. Methodology of research. The theoretical and methodological basis of the research is the fundamental provisions of financial science, set forth in the works of Ukrainian and foreign scientists on the issues of formation of state expenditures. The following general scientific and special methods were used in the research process: logical analysis, synthesis, theoretical generalization (in the process of distinguishing the concepts of “budget expenditures” and “budget costs”); induction, deduction, abstract and logical (when characterizing the essence of state expenditures, state purchases and social transfers); abstraction, description, comparison (to substantiate the mechanism of influence of state expenditures on improving the financial condition of the population). Findings. It has been established that, in terms of economic essence, “budget expenditures” is a broader concept than “budget costs”, since they, under the conditions of exchange for the necessary value equivalent, can be turned into expenses. It is substantiated that public purchases and social transfers are a type of public expenditure. After all, the essence of public procurement consists in the allocation of budget funds for the purchase of goods and services necessary for the functioning of state and local authorities and the population. Instead, social transfers by their content are a system of monetary or in-kind payments to the population that are not related to their participation in economic activity at the present time or in the past. A graphical interpretation of the mechanism of influence of state expenditures on the improvement of the financial condition of the population is presented. Originality. Approaches to the classification of state expenditures have been improved. According to the method of influence on the financial condition of the population, it is proposed to divide expenses into those that directly improve the financial condition of the population, and those that improve the financial condition of the population through reproductive processes. Practical value. The results of the presented research can be used in the process of forming and implementing financial policy in terms of the use of state expenditures to improve the financial condition of the population. Keywords: state expenditures, state purchases, social transfers, population income distribution.

Political Budget Cycle and Financial Losses: An Indonesian Case

This study aims to test the Political Budget Cycle (PBC) in Indonesia as one of the world's largest democracies, specifically testing the presence of PBC across types of local government expenditures. This study further analyzed the effect of changes in expenditure composition during election years on financial local government losses. The financial losses are defined as irregularities in regional finance management found in the Audit Board of The Republic of Indonesia (BPK) audit report. This study uses the data at the district and city levels (local expenditures and financial losses) from 2014 to 2019 and adopts a fixed-effect panel data specification. The empirical estimations show the following evidence: (1) PBC phenomenon occurs in Indonesia, especially on government grants (belanja hibah), expenditure on goods and services, and capital expenditures; (2) There was no difference in PBC behavior between a region having an incumbent running for re-election and a region with incumbents from the previous election; (3) The existence of PBC tend to increase local government (financial) losses.

Government Expenditure on Drinking Water and Sanitation in Uttar Pradesh, India: An Empirical Analysis of Its Trend and Composition

Government expenditure on water supply and sanitation (WSS) aims to improve both the quality of life and health conditions. Using budget analyses, this article highlights the trend and composition of WSS expenditure in Uttar Pradesh covering the period 1990–1991 to 2018–2019. The article also presents political regime wise trend of WSS expenditure and finds that political regime affects WSS expenditure. Regression analysis reveals that net state domestic product is negatively related to WSS expenditure. This is not a good sign for the state where unsafe drinking water, sanitation and hygienic condition is the fourth leading risk responsible for disease burden, and the current status of water, sanitation and hygiene (WASH) condition is quite low. The overall budget for WSS in Uttar Pradesh is grossly inadequate, irresponsive and out of sync with the development reality. There is an acute need of government intervention with higher budgetary allocations for the overall development of water and sanitation facilities in Uttar Pradesh.

Public expenditure composition and fiscal decentralization in Brazilian local governments: an analysis through unconditional quantile regression with longitudinal data

Abstract This paper investigates the effect of increasing fiscal decentralization on the composition of public expenditures of Brazilian local governments. The research is innovative, demonstrating that the heterogeneity of expenditure scale influences the correlation between fiscal decentralization and public expenditure of local governments. The sample consisted of unbalanced panel data of 5,565 municipalities for 17 years from 2000 to 2016. The analysis used unconditional quantile regression with panel data. The main findings were: (i) fiscal decentralization affects public expenditure in Brazilian local governments. However, this effect depends on local expenditure scale and fiscal decentralization strategy. For example, the median coefficient was negative in personnel expenditures, and the effect was positive for the third quartile of local governments, when fiscal decentralization was measured by the tax revenue over total revenue. On the other hand, the effects were also positive for median and third quartile regarding intergovernmental transfers per capita like proxy of fiscal decentralization; (ii) the measures (proxies) of fiscal decentralization are correlated with the composition of public expenditure; (iii) in median terms, fiscal decentralization has greater effects on investment expenditures than on current and personnel expenditures; and (iv) in median terms, the tax revenue participation promotes an increase in administrative and planning expenditures instead of expenditures in social functions. Fiscal decentralization measured by intergovernmental transfer per capita has more positive effects on social functions than on legislative and administrative functions.

Methods and Measurement of Primary, Secondary and Tertiary Healthcare Expenditures in India During 2013–2014 to 2016–2017

Improving investments in primary health care has become a mounting priority in the context of Universal Health Coverage and India’s National Health Policy 2017 goal to provide cost-effective care. The paper uses the India National Health Accounts, health care providers and health care functions classifications, to allocate current health expenditures (CHE) to primary, secondary and tertiary (PST) care and analyse the trends and composition of PST expenditures between 2013–2014 and 2016–2017. Findings reveal that 45.2% of CHE was spent on primary care in 2016–2017. The government spends 52% of its CHE for primary care. Private spending on primary care has declined from 44% to 41% during the study period. Disaggregate analysis shows that 41% of primary care expenditures were on medicines, 29% on curative care and 15% on preventive care services. About 32% of primary care expenditures were spent at government facilities/providers as compared to 10% at private facilities/doctors. Private sector share of secondary care (38%) and tertiary care (75%) reinforces the role of private sector in providing secondary and tertiary care services. In cognisance of national and international goals, an additional investment of 0.7% of gross domestic product or additional US$11 (₹754) per capita would be required in primary care.

Finances of the Nation: The Evolution of Health Expenditures in Canada, 1926-2019

In this article, Livio Di Matteo provides an overview of expenditures on health care in Canada over the long term. He examines changes in the size, relative importance, growth, and composition of health expenditures, with an additional focus on provincial-territorial government spending since the 1970s. Di Matteo links the evolution of health-care spending to factors affecting the demand for and supply of health services, including income, demographic changes, technological development, cost, policy, and public finances.

Globalisation, Welfare Models and Social Expenditure in OECD Countries

What difference do welfare models make for how globalisation in its different manifestations influences the composition of social expenditure? Using data for 36 Organisation for Economic Co-operation and Development (OECD) countries over the period 1990–2018 we examine whether and how different welfare state models influence the impact of the economic, social and political dimensions of globalisation on ten different social expenditure programs. The results indicate that the influence of globalisation (overall and each separate dimension) on different components of social spending varies across welfare models in intensity but in most cases presents a positive sign. We find a more intense positive reaction in the Nordic model for e.g. active labour market policies and housing expenditures, while the reactions of health and education spending are not context specific. Survivors pensions, incapacity related and unemployment benefits and other social policy areas respond to factors other than globalisation. These findings may have important consequences for cross-country convergence in standards of living between different welfare state regimes, as each dimension of globalisation proceeds at different paces. Previous literature also shows that changes in the composition of social expenditure result in different short and long run economic outcomes.