Economic Consequences Research Articles

DIGITALIZATION OF THE TAX SYSTEM IN EUROPE

In the context of the highly increasing dispersion of technology in the European economic environment, the interaction of citizens with the public sector is changing rapidly. European countries have significant differences on the tax collection, generating economic effects under a complex fiscal system. The purpose of this study is to analyse the effects of digitalization on the VAT compliance gap in the European Union countries. The analysis considers the VAT compliance gap as the dependent variable and examines the influence of E-government activities of individuals via websites as an independent variable, as a relevant indicator of digitalization. The research approach methodology consisted in EViews Granger causality tests for the collected data from the EU sources, for a period of ten years (2012-2021). The study results revealed relevant insights and latest information about the connection between e-government users and the VAT compliance gap. This relationship is particularly notable as it emphasizes the potential of digitalization in uplifting tax compliance and improving VAT collection. Studying the impact of digitalization on VAT compliance, the research is intent to provide to the economist, policymakers, and students a deeper understanding of the technology’s impact on tax policies and economic outcome.

Resilience and Loss During the Iron-Swords War: The Importance of Coping Strategies

The unprecedented events on October 7th in Israel, characterized by little actual and perceived control over the sources of the stress, have affected virtually every household in Israel, either due to the economic and social consequences of the ensuing war or experiencing the loss of relatives and friends. The current study examined the association between traumatic loss of close friends/relatives and resilience during the initial stages of the Iron-Swords war and explored the moderating role of coping strategies for this link. Data were collected from 286 participants (age range 19-82) who completed online scales assessing loss, resilience, and coping strategies during the first weeks of the Iron-Swords war. Results demonstrated a negative association between emotion-focused coping and resilience, as well as a positive association between problem-focused coping and resilience. Moreover, coping strategies moderated the loss-resilience link, which was significant only for individuals reporting low levels of both problem-focused and emotion-focused coping. Our findings support the claim that relying on at least one dominant coping strategy (i.e., problem-focused coping/emotional-focused coping/both) is efficient to reserve resilience levels at times of adversity. The findings of the current study, based on data collected in the first weeks of the Iron-Swords war, highlight the value of different coping styles in preserving individual resilience as a protective factor against stress during adversity.

The economic costs and consequences of (insufficient) sleep: a case study from Latin America.

Sleep, an essential physiological process, has long been recognized for its critical role in human health and well-being. Beyond its biological significance, recent research has highlighted the intricate interplay between sleep and economic outcomes. By constructing meticulous economic models that account for diverse factors and refining them based on empirical data and local characteristics, this study aims to provide an in-depth understanding of the significant economic toll stemming from inadequate sleep and its ramifications on various aspects of society. Here we calculated the effect of insufficient sleep on economic loss in Argentina, according to an Overlapping Generations (OLG) model that considers average sleeping length in terms of the recommended minimum and its effect on productivity and health outcomes. We considered different scenarios in which the population sleeps from six to nine hours every night. Our results indicate that if the whole adult population achieved the recommended sleep duration of at least 7h/night, it would be associated with a 1.27% higher GDP compared to the baseline scenario, representing the most optimistic outcome. This equals about 3.7 times the total annual budget in science, and is approximately the same percentage as the actually implemented national budget for education. In summary, by bridging the usually distant realms of biology and economics, this study offers a comprehensive analysis that not only deepens our understanding of the mechanisms underlying these costs but also provides potential avenues for intervention and policy-making.

Artificial intelligence adoption and credit ratings*

ABSTRACT Using 6,566 observations of bond credit ratings in China from 2010 to 2022, this paper empirically finds that artificial intelligence (AI) adoption by firms improves bond credit ratings via improving productivity and information transparency. Such a positive relationship is more pronounced when the issuers are non-state-owned enterprises, labor-intensive enterprises, or engage heavily in earnings management. This study enriches the literature of the influencing factors of credit ratings and the economic consequences of AI adoption. Furthermore, this study offers insights for enterprises seeking to leverage AI for reduced financing costs, and sheds light on future digital policy design.

The Dynamic Post COVID-19 World and Inflation: is Nigeria’s Monetary Policy Effective?

Nigeria had relative success in tackling the Covid-19 and its attendant economic consequences. A complementary mix of superior monetary and fiscal policy interventions saw support for the real sector, as well as growth and strengthening for the financial sector. The monetary authorities used several mediums to inject funds into the economy, while the financial sector was the channel through which huge sums were injected into the economy. These interventions however came with their fair share of woes, as they were carried out against the backdrop of rising inflation and unemployment levels. The unique nature of the Nigerian economy saw policy interventions targeted at stabilizing the economy, yield less than satisfactory outcomes. Currently, Nigeria faces the lagged impact of monetary and fiscal Covid-19 interventions in persistent high double digit inflation rates. The fall in global oil supply and world food prices necessitated by the Ukraine-Russian war have not helped the situation. These global events have had far reaching impacts on the Nigeria economy via the shortfall in supply of Premium Motor Spirit (PMS) products, food shortages, and resultant exchange rate pressures. The domestic economy has not been without its fair share of events that have resulted in a spike in inflation rates. The persistent security issues in the north and other parts of Nigeria, did not serve as an obstacle to people mobilization and the high spending during the 2023 elections. Declining government revenues, the rising public debt and its servicing, while inimical in their own stead, have catalyzed the pressure on the exchange rate. Against these backdrop, the monetary authority’s decision to institute a currency redesign and cashless policy has left people confused as to what actually is their short- and long-term goals/objectives, the effectiveness of policy to achieve said goals, as well as their readiness to tailor policy to changing global events/trends. The study will seek to examine monetary authority responses to curb inflation and achieve economic stability.

Health and Economic Effects of Salt Reduction Interventions for Preventing Noncommunicable Diseases in Japan: A System Dynamics Simulation Study

Reducing salt intake is a vital public health measure for combating noncommunicable diseases and mitigating rising social security expenditures in Japan. We developed a system dynamics model to analyze the potential health and cost effects of salt reduction interventions among the Japanese population aged 40 years and above from 2012 to 2040. The simulation findings derived from the model indicate that, in the base run, the disability-adjusted life years (DALYs) for cardiovascular disease (CVD) and chronic kidney disease (CKD) are projected to be approximately 55 and 9.5 per 100,000 people, respectively, contributing approximately 40 trillion yen in social security expenditures by 2040. The model predicts that implementing mandatory reformulation could decrease DALYs for CVD and CKD by 5.7% and 6.2%, respectively, resulting in an approximately 6.7% reduction in social security expenditure. Additionally, voluntary reformulation is estimated to reduce the DALYs for CVD and CKD by 4.7% and 5.2%, leading to a 5.6% decrease in social security expenditure. Finally, accelerating the adoption of a low-salt diet is expected to lower the DALYs for CVD by 2.8% and CKD by 3.2%, thereby reducing social security expenditures by 3.4%. Thus, product reformulation initiatives have a greater impact on health and economic outcomes.

The economic and psychological impacts of covid-19: a exploratory study of the intersection of traditional and new vulnerable groups in South Korea

BackgroundThe global impact of the COVID-19 pandemic has been extensive, disproportionately affecting various vulnerable populations. In addition to traditional vulnerable groups (TVGs) such as the elderly, women, people with lower education, disabled individuals, and low-income groups, new vulnerable groups (NVGs) have emerged, including essential workers, face-to-face workers, temporary workers, and the self-employed. This study focuses on exploring the economic and psychological effects of the pandemic on both traditional and newly recognized vulnerable groups within Korea.MethodsThe study employed multiple logistic regression using micro-level social survey data from Statistics Korea to calculate the odds ratio relating to two categories of vulnerable groups and their economic and mental health impacts. Additionally, through interaction term analysis, we tried to uncover the complex interrelationship between these non-vulnerable groups and target vulnerable groups.ResultsBoth the newly identified and traditional vulnerable groups showed higher likelihood of facing economic and mental health challenges compared to non-vulnerable groups. The likelihood of encountering a decrease in income and work-related stress was 2.17 times higher (95% CI = 1.90–2.47) for NVGs, while those belonging to TVGs had a 1.75-fold increase (95% CI = 1.47–2.08). Moreover, female self-employed workers faced higher overall stress at 1.36 times greater risk (95% CI = 1.08–1.71), whereas elderly individuals who are self-employed exhibited lower odds of experiencing such stress at the intersection between TVGs and NVGs.ConclusionThis research offers in-depth understanding of the diverse impacts of COVID-19 on at-risk groups. Furthermore, examinations that take into account interactions between NVGs and TVGs uncovered subtle effects within subgroup dynamics, suggesting that intersecting factors play a role in different levels of vulnerability. This provides valuable evidence for informing policy decisions and allocating resources.

Tanzania’s Position on the Ukraine Crisis: Neutrality with a Stance or Just Sitting on the Fence?

Abstract The Ukraine crisis has morphed into a political minefield for countries far removed from the war zone. While some states have been vociferous in supporting sanctions against Moscow or denouncing Kyiv’s ambition to join the North Atlantic Treaty Organization (NATO), others have ‘played it safe’ by maintaining a neutral position. Tanzania abstained in most of the voting rounds at the United General Assembly (UNGA) on the crisis. The Russia-Ukraine conflict has had significant economic effects on the country, but its diplomatic relations with these belligerent parties have remained unscathed. But what has been Tanzania’s position on the Ukraine crisis since 2014? What has been the voting trend at the UNGA by the country and other East African Community (EAC) partner states on the Ukraine crisis? These are some of the questions that the current article seeks to answer.

Traffic Accidents: A Historical and Socio-Legal Analysis of Road Safety Challenges

Abstract This article examines the socio-legal aspects of the formation of the concept of a traffic accident, exploring its evolution from the late 19th century to the present day. The rapid growth of motor vehicles and the increasing complexity of road systems have necessitated the development of legal frameworks and safety regulations to address the risks posed by traffic accidents. The study highlights key legal milestones, such as the official introduction of the term “traffic accident” at the 1949 Geneva Conference, and analyzes the role of societal attitudes toward road safety and personal responsibility. It also delves into the cultural factors influencing traffic behavior, emphasizing the need for a comprehensive safety culture that involves drivers, pedestrians, and state regulation. By assessing the socio-legal dynamics, the article provides insights into the challenges of ensuring road safety and reducing the social and economic consequences of traffic accidents.

The impact of corporate digital transformation on stock market activity: evidence from the Chinese listed manufacturing companies

Purpose This research aims to investigate the impact of corporate digital transformation (CDT) on stock market activity. Design/methodology/approach A data set of Chinese listed manufacturing enterprises from 2012–2021 is used as a research sample. Findings This research finds that CDT can promote stock market activity. This study validates two potential mechanisms: increasing financial performance and mitigating information asymmetry. This study further suggests that internal control and analyst coverage can strengthen the impact of CDT on stock market activity. Research limitations/implications The research exhibits certain limitations that should be considered in future research. Because the findings are based on the Chinese context, the applicability and generalizability of the findings to other environments may be limited. This research enriches the literature on the determinants of stock market activity from a technological perspective and incrementally contributes to understanding the impact of CDT on stock markets. After analyzing two opposing perspectives on the economic consequences of CDT, the favorable effect of CDT on stock market activity is proven based on the resource-based view and agency theory. This research extends the literature on the relationship between CDT and investor behavior, demonstrating that investors perceive CDT as beneficial. The results provide evidence that CDT can increase financial performance and improve the information environment, leading to increased investor attention and enhanced trading activity. Practical implications This research has incremental practical implications for enterprises and regulatory authorities to comprehend the economic consequences of CDT in developing countries. First, enterprises should increase their digital investments to improve their performance and decrease information asymmetry. Furthermore, enterprise managers should strengthen information systems to adapt to the process of CDT and train employees on digital skills. Second, regulatory authorities should provide comprehensive digital policies and programs supported by tax incentives, subsidies and digital infrastructure projects (Wang et al., 2023). Originality/value This research strengthens the debate on the market impact of CDT. Unlike prior literature, this study explores the influence of CDT on stock market activity for the first time, enriching the literature on CDT and stock market activity. Furthermore, the outcomes guide regulatory authorities to actively support CDT and expedite the digital upgrading of manufacturing industries to promote stock market activity.

Splits Revolutionizing Access to Affordable Streaming Subscriptions

Charges of subscriptions in the growing competition of online entertainment are sometimes very much impacting the customer’s pocket. To overcome this challenge, there is Splits that provides an opportunity to subscribe for numerous streaming services with better conditions than individual companies; streaming services include Netflix, Prime Video, Disney+, SonyLiv, YouTube Premium, Spotify, etc. In this paper, the role and efficiency of Splits in letting the users subscribe to group plans and allowing all of them to access important content while still decreasing the cost dramatically will be discussed. The completely constructed application named Splits allows users to quickly create groups and enjoy their favorite services multiple times cheaper than usual thanks to a comfortable interface. Initial results reveal the factors in health care cost saving with high levels of user satisfaction and participation. In addition, the paper examines possible future developments of the model such as the addition of user preferences and incorporation of feedback for tailored streaming services. Splits help this study, as it presents an insight into the estimates of economic effects of Splits on subscription-based entertainment; thus, enlarging the comprehension of the changing consumer access to digital media and improving the practical recommendations on individual decision- making in an ever more digitalised world. INDEX TERMS : Splits, Streaming Services, Subscription Model, Cost-Effective Entertainment, Group Subscriptions, Digital Media Access, Consumer .

Afforestation of common land in the Classical Karst: relations between the authorities, the local population, and the economic consequences of afforestation

The findings of environmental history are in the service of ecology and represent an important contribution to the understanding of the sustainable management of land. The aim of this article is to shed light on the relations between the local population and the authorities regarding the afforestation of common land in Komen in the second half of the 19th century and the beginning of the 20th century, placing them in a broader Mediterranean context. The local population was not opposed to afforestation per se, but to the prohibition of usufruct on afforested land, which had major economic consequences for the local population. Authorities did not always take into consideration the annual agricultural processes, local customs, and natural resource needs in their afforestation decisions. The prohibition of usufruct was followed by a shortage of fodder and firewood, which led to forest violations to satisfy demands. Thus, afforestation has undermined the basis of agriculture. In addition, already afforested land remained under common ownership for a relatively long time.

THE GEOPOLITICAL AWAKENING OF THE EUROPEAN UNION AGAINST THE BACKDROP OF THE RUSSIAN-UKRAINIAN WAR

The article analyses the impact of the Russian-Ukrainian war on the geopolitical transformation of the European Union (EU). It examines the key changes in the EU's security, energy and international relations strategy, as well as the development of its strategic autonomy and role in supporting Ukraine. The study is based on the analysis of scientific sources and political articles related to the EU's foreign policy and security mechanisms. A comparative analysis of the EU's decisions on sanctions, energy security and military assistance to Ukraine is used. Expert assessments of the geopolitical situation and economic consequences of the war are also taken into account. The article contributes to understanding the role of the Russian-Ukrainian war as a catalyst for the EU's political and strategic awakening. In particular, it highlights the development of the EU's strategic autonomy in response to its energy dependence on Russia and the growth of defence cooperation between member states. The author also explores how the war has contributed to the consolidation of European identity and the strengthening of the desire for global leadership in the face of current international challenges. The author notes that the Russian-Ukrainian war has accelerated changes in the EU's approach to foreign and security policy. The EU has strengthened its strategic autonomy, increased economic sanctions against Russia and mobilised resources to support Ukraine. At the same time, the war has shown the need to develop energy resources independent of external suppliers and to increase the EU's internal defence capabilities. Ukraine's integration into the European space has become an important strategic direction of the EU's policy. An important aspect has been the strengthening of European defence cooperation, which demonstrates the EU's desire for greater independence in security matters. Ukraine's integration into the European space is becoming one of the key directions of the EU's foreign policy, which may accelerate the process of Ukraine's accession to the Union in the future. The author also draws attention to the fact that the issue of strengthening the EU's defence capabilities affects the problem of the international security system, which today, as a result of the Russian-Ukrainian war, is undergoing the greatest transformations since the Second World War.

Economic analysis of implementing Systemic Coronary Risk Estimation (SCORE2) scale and long-term consequences

Objective: to assess the demand for pharmacotherapy in risk groups on adverse cardiovascular (CV) events identified during prophylactic medical examination of the adult population according to the SCORE2 (Systemic Coronary Risk Estimation) scale, which is being introduced into clinical practice.Material and methods. To analyze the economic consequences of including diagnostic examinations to assess the risk by SCORE and SCORE2 scales, a Markov model was developed, which described the course of lipid metabolism disorders in adult patients aged 40 to 69 years without concomitant diseases identified during prophylactic medical examination. The model cycle was 2 months (the average waiting time for response to therapy); the modeling horizon was 3 years; the calculated values were estimated for the period 2024–2026. The economic analysis of long-term consequences involved calculating the cost of pharmacotherapy and the costs associated with CV events at outpatient and inpatient stages of medical care. The costs of drug therapy were determined based on dosage regimens presented in instructions for medical use in Russia, and clinical guidelines.Results. According to the modeling results, in the period 2024–2026, the administration of pharmacotherapy to reduce the risks of CV events will enable to achieve 23,224 potentially saved lives through exclusively government funding or 23,605 through mixed sources of funding (government and citizens’ own funds). The cost of the analyzed pharmacotherapy upon the introduction of the SCORE2 scale will be from 50.18 billion rubles (with government funding) to 318.14 billion rubles. Concurrently, pharmacocorrection will provide a reduction in the costs of inpatient treatment and outpatient medical services to 4.1 billion rubles due to the achieving of intended low-density lipoprotein level, and 1.6 billion rubles due to the achieving of intended triglyceride levels.Conclusion. Using new SCORE2 scale may lead to changes in the practice of prescribing lipid-lowering prophylaxis of CV diseases, as well as to a sharp increase in the number of patients who may require earlier prescription of pharmacotherapy to prevent CV events.

Factors of military Keynesianism in modern economic policy in Russia

Historical aspects, general economic logic and theoretical discussions around military Keynesianism as a policy of stimulating the economy through increased government allocations for defense items are considered. A brief overview of empirical studies on the economic results of military spending is presented. In relation to the period 2022—2024 in the Russian economy, the size of the fiscal impulse due to defense budget items, its positive and negative effects are analyzed. The secondary nature and low controllability of economic effects of defense policy are emphasized. Among the factors hindering the success of military Keynesianism in modern Russia, limited spare capacity and labor are noted, which generate inflationary consequences, as well as the contradiction between tightening monetary conditions and continued fiscal stimulus. The conclusion is made about the predominance and possible aggravation of negative consequences of the expansion of financing through military spending

Economic Effects of COVID-19 Agricultural Loan Palliative on Poultry and Fish Farmers’ Production in Ondo State, Nigeria

Economic Effects of COVID-19 Agricultural Loan Palliative on Poultry and Fish Farmers’ Production in Ondo State, Nigeria

Implementing Innovations That Provide Sustainable Solutions in the Tourism Sector

Objective: The purpose of this development is to present the relationship between the implementation of innovations in the tourism business and its sustainable development. Theoretical Framework: In this topic, presents the main concepts and theories for the scope of innovation activity in the tourism sector. The main types of economic and non-economic innovations related to the sustainable management of the tourism business are highlighted. Method: Qualitative methods, including interviews and observations, were used in this study. Owners and managers of tourist organizations who are familiar with the innovative activities of the represented enterprises and can indicate the effect of their implementation were surveyed. Results and Discussion: The findings of the study highlight the importance of synergy between innovation and sustainable management of the tourism business. The study of the experience of the Bulgarian tourist enterprises proves that the implementation of innovations provides competitive advantages to the tourist enterprises and contributes to their sustainable development. Research Implications: A practical study is carried out, which presents the spread of innovations in the tourism sector in Bulgaria and proves that they lead to both economic and non-economic effects related to the sustainable development of the enterprise's activities. Originality/Value: This study contributes to the literature by presenting the scope of innovation activity in the tourism enterprise and outlines the relationship between economic and non-economic innovations. The relevance and value of this research is demonstrated by addressing the specific topic of innovation in the tourism industry, which is an important area of inquiry given the dynamic nature of the sector and its significance for economic development.

Unveiling the chasm of economic burden from metastatic prostate cancer through a nationwide retrospective cohort study

Objective To analyze the clinical and economic consequences of the progression to castration-resistant status for patients with metastatic hormone-sensitive prostate cancer (mHSPC) and metastatic castration-resistant prostate cancer (mCRPC) in South Korea. Methods This retrospective cohort study was conducted using National Health Insurance claims data from 2013 to 2021. Patients defined as newly diagnosed with mHSPC had an index date of first claim for metastatic PC between 2015 and 2016 and no exposure to CRPC medicines during the washout period. All-cause monthly medical and end-of-life costs were described for mHSPC and mCRPC. Descriptive statistics were used to analyze medical costs, and generalized estimating equations were used to evaluate the correlation between medical costs and significant variables, including disease progression, death, and clinical characteristics. Results Of the 3,739 patients with mHSPC included (mean 72.9 years), 779 progressed to mCRPC. The overall study population underwent a median 60.48-months follow-up period. The average monthly medical cost depending on CRPC progression was 1.5 times in the mCRPC than in the mHSPC group ($1,734.2 vs. $1,185.4). Monthly medical costs for those who progressed to mCRPC were 2.4 times one year after progression than one year before. In all groups, the average total medical costs gradually increased near mortality. Disease progression and death had a significant correlation with medical costs, by 1.7 times and 2.46 times, respectively. Conclusion This study highlights the economic and health benefits of preventing progression to castration resistance in patients with mHSPC based on real-world data.

Directors from related industries and corporate diversification

ABSTRACT This paper aims to examine the impact of directors from related industries on corporate diversification. Director social networks, as a form of informal institution, have significant effects on firms’ production, operation, and strategic decision-making. However, few studies have focused on the economic effects of directors from related industries. We select Chinese A-share listed companies from 2012 to 2021 as our research sample and empirically examine the impact of directors from related industries on corporate diversification. The study finds that directors from related industries can promote corporate diversification. Mechanism tests that they can influence corporate diversification through the information channel. Heterogeneity analysis shows that the impact of directors from related industries on corporate diversification is more pronounced in firms with strong absorptive capacity, non-state-owned enterprises, and in regions with poor institutional environments. Additionally, directors from related industries can strengthen the positive correlation between diversification and corporate investment efficiency.

The Impact of Agglomeration on CO2 Emissions in China's Transport Sector: A Spatial Econometric Analysis

The long-term processes of urbanization and industrialization have led to the agglomeration of population and industry, fostering economic development while introducing opportunities and challenges for carbon reduction in transport. This paper integrates the Stochastic Impacts by Regression on Population, Affluence, and Technology Model with the Spatial Durbin Model to assess the effects of population agglomeration and industrial agglomeration on transport carbon dioxide emissions. The empirical results show that a 1% increase in population agglomeration decreases local transport carbon dioxide emissions by 1.7065% and generates a spillover effect of 1.0542% in surrounding areas. In contrast, industrial agglomeration increases regional transport carbon dioxide emissions by an average of 0.3309% without significant spillover effects. Furthermore, economic agglomeration exhibits an N-shaped relationship with transport carbon dioxide emissions, reflecting the dual influences of the "economic effect" and the "congestion effect". Mechanism analysis reveals that both types of agglomeration can modulate the impact of infrastructure development on transport carbon dioxide emissions, suggesting that effective infrastructure planning can help alleviate the negative environmental impacts. This study provides a spatial mode for understanding the synergistic effects of population planning, industrial development, and environmental improvement, offering significant reference value for policymakers in the decision-making related to low-carbon transport development.