Effects Of Government Spending Research Articles

Fiscal Policy, Government Ideology, and Economic Activity: Evidence from OECD Countries

AbstractThis study explores the role played by a country's political environment in the origin and effect of government spending. Using a rich data set that contains time‐varying ideological party positions, I show that both government ideology and the timing of elections are key determinants of government spending shocks and Granger‐cause government spending shocks estimated from traditional structural vector autoregressive (SVAR) models that ignore political considerations. I find that the magnitude of the spending multiplier depends on the political context: highly polarized countries have smaller multipliers relative to countries with a low degree of polarization, and established democracies have smaller multipliers than younger democracies.

Factors affecting the human development of regencies/cities in Lampung province

The regency/city Human Development Index in Lampung Province grew slowly in 2017-2021. Lampung Province ranks lowest of the ten provinces on the island of Sumatra in 2021, even though government spending in the education sector and per capita income continue to increase while the percentage of poor people has decreased relatively. This research aims to determine the effect of government spending on the education sector, per capita income and poverty on the HDI of regencies/cities in Lampung Province and to explain HDI from an Islamic economic perspective. The data sources were obtained from the Central Agency of Statistics and the Directorate General of Fiscal Balance in 2017-2021. Panel data regression was used to analyze the data in this study. The results showed that partial government expenditure in the education sector and poverty had a significant effect on the HDI of regencies/cities in Lampung Province, while per capita income had no significant effect on the HDI of regencies/cities in Lampung Province.

Decoupling government spending from carbon emissions: A spatio-temporal analysis of 283 Chinese cities

A comprehensive evaluation of government spending efficiency and its connection to emissions reduction is vital for sustainable green economic progress. However, the precise nature of the decoupling relationship between carbon emissions and government spending at the city level remains uncertain. Here, using the panel data from 283 cities covering the period from 2007 to 2020, we employ diverse methodologies, such as Kernel density estimation and spatiotemporal autocorrelation analysis, to examine the spatiotemporal distribution of decoupling and identify key contributors through LMDI decomposition analysis. We find that initially, most cities demonstrated weak decoupling, but after 2010, a subset of cities achieved strong decoupling. The spatiotemporal distribution analysis highlights an expansion of inter-city differences in decoupling values and a reduction in the number of cities forming clusters after 2015. Furthermore, an increasing number of cities experienced positive emission intensity effects, while the positive effects of government spending on labor input consistently decreased. Initially, the positive effect of government spending on economic development declined but later showed a slight increase. The distribution of cities with a positive impact of government spending scale shifted from dispersed to concentrated in northern regions, resulting in a decrease in the number of cities with a positive impact.

The Heterogeneous Effects of Government Spending: It’s All About Taxes

Abstract Historically, large changes in U.S. government spending induced fiscal efforts that were not all alike, with some using more progressive taxes than others. We develop a heterogeneous-agent New Keynesian model to analyse how the distribution of taxes across households shapes spending multipliers. The model yields empirically realistic distributions in marginal propensities to consume and labour elasticities, which result in lower responsiveness to tax changes for higher-income earners. In turn, multipliers are larger when spending is financed with higher tax progressivity—that is, when the tax burden falls more heavily on higher-income earners. This result is historically material. We estimate that, on average, tax rates increased more for top-income than for bottom-income earners after a spending shock. Thus, the typical U.S. spending shock was financed with higher tax progressivity. We further exploit the historical variation in the financing of spending to estimate progressivity-dependent multipliers, which we find consistent with the model.

Studi Potensi Ekonomi SUB Sektor Pariwisata Religi Terhadap PAD Kabupaten Bangkalan: Pendekatan Prediksi Panel

From year to year, the halal industry trend is increasing in demand. This is caused by consumer trust in halal products. Halal products are increasingly popular because they guarantee cleanliness and safety in their use. Halal products are not only in the financial sector, but more than that, including halal food, halal cosmetics, sharia tourism or halal tourism, and so on. This research aims to determine the effect of government spending, hotel occupancy rates, tax revenues, labor force participation rates, number of tourists, and consumption on Regional GDP per capita. This research uses secondary data obtained from BPS Bangkalan Regency. The data analysis technique uses the common effect model (CEM) as part of panel data. Based on the results of data processing, it was found that hotel occupancy rates, tax revenues, labor force participation rates, number of tourists and consumption had a positive and significant effect on Regional GDP per capita of Bangkalan Regency. The government expenditure variable has a positive relationship, but has no significant effect on the Regional GDP of Bangkalan Regency.

Pengaruh Pengeluaran Pemerintah Sektor Kesehatan, Pertumbuhan Ekonomi, Dan Kemiskinan Terhadap Indeks Pembangunan Manusia (Kabupaten/Kota Di Provinsi NTB)

This study aims to analyze the effect of government spending on the health sector, economic growth and poverty on the human development index. The population used in this study is 10 regencies / cities in West Nusa Tenggara Province for the last 10 years. The data collection method used is the sample survey method. The data analysis method in this study uses panel data regression processed using the Eviews 10 application. The results of the analysis in this study are Partially government spending in the health sector has a positive and significant effect on the human development index, economic growth has a positif and significant effect on the human development index and poverty has a negative and significant effect on the human development index. While simultaneously government spending in the health sector, economic growth and poverty have a significant effect on the human development index

Does public debt moderate government spending – informal economy nexus? Evidence from the Asian countries

PurposeThe purpose of this study is to explore the relationship between government spending, public debt and the informal economy. In addition, this paper investigates the moderating role of public debt in government spending and the informal economy nexus.Design/methodology/approachBy utilizing a data set spanning from 2000 to 2017 of 32 Asian economies, the study has employed the dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS). The study is also extended to consider the marginal effects of government spending on the informal economy at different degrees of public debt.FindingsThe results indicate that an increase in government spending and public debt leads to an expansion of the informal economy in the region. Interestingly, the positive effect of government spending on the informal economy will increase with a rise in public debt.Originality/valueThis study stresses the role of government spending and public debt on the informal economy in Asian nations. To the best of the authors' knowledge, this study pioneers to explore the moderating effect of public debt in the public spending-informal economy nexus.

The Causal Relationship between Government Expenditure and Inflation in Nigeria: Smooth Transition Regression Approach

This paper revisits the nexus between government spending and inflation in Nigeria using a Smooth Transition Regression model (STR) to investigate both the linear and nonlinear effects of the former on the latter from 2000: 1 to 2023:6. The monthly data sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin (2023) are used. The study reveals that linear approximation fails to adequately explain the non-linear effects of government spending on inflation, particularly in high-growth regimes financed by the central bank. It is suggested that in a low-growth regime where government spending is not financed by the central bank, avenue should be given to fiscal policy to stimulate and control inflation.

Does household debt affect the size of the fiscal multiplier?

Abstract Does household debt affect the size of the fiscal multiplier? We investigate the effects of household debt on government spending multipliers using a smooth transition vector autoregression model. Through generalized impulse response functions, we measure whether the effect of government spending on GDP is conditioned by different levels of household debt in Australia, Sweden, and Norway, three countries with high levels of household indebtedness, and in the world’s seven largest economies. Our results indicate that the short-term effects of government spending tend to be higher if fiscal expansion takes place during periods of low household debt. On average, the fiscal multiplier (on impact) is 0.70, 0.61, and 0.79 (percent of GDP) larger when the increase in government spending takes place during periods of low household debt for Australia, Norway, and the United States.

Pengaruh Belanja Pemerintah dan Pajak Daerah terhadap PDRB di 33 Kabupaten/Kota Provinsi Sumatera Utara

The purpose of this study is to analyze the effects of government spending and local taxes on GRDP in North Sumatra from 2016 to 2021. This study uses panel data analysis methods to determine the impact of independent variables on the dependent variable in 2016. panel data panel data analysis. the regression model after the Chow test and Hausman test showed that the effect model was still used. Based on t-statistic test (partial test). The probability values ​​of government spending and local taxes are 0.000 and 0.0000, so it can be concluded that the variables of government spending and local taxes have a significant effect on GRDP.

Analysis of the Effect of Government Spending and PDRB on Human Development Index in Districts/Cities of Bengkulu Province

HDI, or Human Development Index, is a measure used to assess the level of human quality development in a country. The purpose of this research is to see the effect of government expenditure on education and health as well as GRDP on the level of HDI in the Regency/City of Bengkulu Province. The analysis method in this study uses panel data regression and uses Stata/MP 14.0 software. Panel data covering 10 regencies/cities in Bengkulu Province for a period of 7 years, namely 2015-2021. The results of the research conducted have a significant influence between health expenditure, and GRDP on HDI in the Regency/City of Bengkulu Province. However, education expenditure does not have a significant effect on HDI in the Regency/City of Bengkulu Province. Through health expenditure and GRDP, it is hoped that it can improve the quality of life of people in Bengkulu Province.

The Effect of 2015-2019 Government Expenditure in the Education, Health and Purchasing Power Parity Sectors on the Human Development Index (Hdi) of South Halmahera Regency

This study aims to determine and analyze the effect of government spending in South Halmahera Regency in 2015-2019 on the education, health and purchasing power parity sectors on the human development index (HDI). The population is education data, health data, purchasing power parity and human development index (HDI) data in South Halmahera Regency in 2015-2022 which are sampled. The research method uses a quantitative descriptive approach. The results of the study found that: (1) Government spending on the education sector has a positive but insignificant effect on HDI, (2) Government spending on the health sector has a positive but insignificant effect on HDI, (3) Government spending on the community purchasing power sector has a positive and insignificant effect on HDI. (4) Government spending on the education, health and community purchasing power sectors has a positive but insignificant effect on the HDI.

PENGARUH PENGELUARAN PEMERINTAH,PERTUMBUHAN EKONOMI DAN DESENTRALISASI FISKAL TERHADAP INDEKS PEMBANGUNAN MANUSIA DI PROVINSI ACEH

This study aims to analyze the effect of government spending, economic growth and fiscal decentralization on the Human Development Index (HDI) in Aceh Province. The data used in this research is secondary data for 2014-2021 accessed from www.bps.go.id. The data analysis method used is panel data regression analysis using Eviews 10 software. The results show that government spending and economic growth partially haveno a significant effect on HDI in Aceh Province. Meanwhile, fiscal decentralization has a positive and significant effect on IHDin Aceh Province. Simultaneously, government spending, economic growth and fiscal decentralization have a positive and significant effect on HDI in Aceh Province. Government Aceh is expected to be more consistent and intensive in increasing the HDI through programs related to economic, health and education aspects.

The unfree, the freer, and the government: Economic freedom and the fiscal multiplier

We investigate the causal effect of government spending on real output conditional on economic freedom. Using data for 161 countries from 2000 to 2019 results show, first, that the size of the fiscal multiplier is inversely related to the level of freedom and, second, countries with the mean level of economic freedom of the sample (6.9) had a multiplier of around 1. Developed countries are characterized by high levels of freedom and a fiscal multiplier lower than 1 while developing countries exhibit a fiscal multiplier higher than 1 and low levels of freedom. The differences between countries with low and high economic freedom in their fiscal multipliers are asymmetric, in fiscal contractions are higher. We conclude that countries should strengthen institutions to promote economic freedom and development.

Unraveling the impact of social assistance and capital expenditure on poverty rates in Papua's Region

The Indonesian government has made various efforts to reduce poverty, including through policies in government spending. The spending realized by the government is expected to be able to encourage an increase in people's welfare and reduce poverty. This study aims to analyze the effect of government spending, especially social assistance expenditure and five types of capital expenditure, on the poverty rate, using data at the regional/city level in the Papua province from 2011 to 2019. This study also uses other supporting variables, namely the Gini ratio, Gross per capita Regional Domestic Product (GRDP), school participation rate, and ratio of community health centers. The data used is secondary data obtained from Statistics, The Audit Board of The Republic of Indonesia (Badan Pemeriksa Keuangan, BPK), and the Ministry of Health. The data analysis technique used in this study is panel data regression analysis with a fixed effect model. The analysis showed that out of the six types of government expenditure studied, only capital expenditure for roads, networks, and irrigation significantly reduces the poverty rate.

Pengaruh Pengeluaran Pemerintah Bidang Ekonomi dan Pelayanan Umum terhadap Pertumbuhan Ekonomi di Provinsi Jambi

The purpose of this study is aimed at knowing (1) The effect of government spending on the economy and public services on economic growth in Jambi Province. (2) Effect of government spending on public services on economic growth in Jambi Province. (3) The effect of government spending on the economy and public services simultaneously on economic growth in Jambi Province. The data used in this study are secondary data obtained from the official website of the Central Statistics Agency and the Directorate General of Fiscal Balance. The population used in this study were all regencies and cities in Jambi Province in 2014-2018, amounting to 55. This study used the Fixed Effect Model panel data regression analysis tool. The results showed that: (1) government spending in the economy had a significant effect on economic growth, indicated by the value of 1.766245> t table 1.29837. (2) government spending on public services does not have a significant effect on economic growth, as indicated by the value of tcount 0.952926 <ttabel 1.29837 (3) government spending on the economy and public services simultaneously influencing economic growth is indicated by the value of Fcount 12.86652> Ftable 3.18. and the coefficient of determination (Adj R2) 0.725.

The Effect of Government Expenditure on Education, Health and Road Infrastructure Sector on Human Development Index in Kabupaten Sidoarjo

Human development in East Java continues to grow, one of which is Kabupaten Sidoarjo. The Kabupaten Sidoarjo Human Development Index (HDI) in 2021 is ranked 4th in East Java. The Human Development Index in Kabupaten Sidoarjo has experienced a good increase every year. With this increase, a study was conducted that aims to determine and analyze the effect of government spending in the education, health and infrastructure sectors on the human development index in Kabupaten Sidoarjo. This research was conducted in Kabupaten Sidoarjo by collecting and processing periodic human development index data from 2011-2022 (12 years). The approach is done using descriptive quantitative. For data analysis methods using classical assumption tests, regression analysis and hypothesis testing. From the results obtained that government spending in the education and health sectors has a significant effect and a positive relationship while the infrastructure sector has no significant and positive effect on the value of HDI in Kabupaten Sidoarjo in 2011-2022.

Economic Policy Responses to Covid-19 and Expenditures on Domestic Travel: International Evidence

In response to the unprecedented circumstances resulting from the COVID-19 pandemic, various national government policies were implemented to reduce the serious economic damage caused by the pandemic and attempts to control it. These policies generally aimed to kick-start domestic-led recoveries in many sectors. This study examines how different types of fiscal measures adopted by governments in response to this pandemic are associated with the growth of expenditure on domestic travel in 2020. Utilizing data from 76 countries and applying OLS estimator and 2SLS regression (which mitigates the potential endogeneity problem), the study shows that governments’ additional spending and tax reductions (especially in non-health sectors) positively contributed to rising expenditure in domestic travel destinations. Similar results are found for countries that are very reliant on tourism. Our findings lend empirical support for Keynesian theory’s prediction concerning the effect of government spending and tax reduction on household consumption behavior in the short run, particularly during periods of economic stress and uncertainty.

Undernourishment on Longevity in West Africa: A Group Outcome

The length of time a person lives from the date of birth is an essential dimension of a country’s level of development. Several factors have been identified as responsible for longevity. This study investigated the effect of undernourishment prevalence and other factors on longevity in West Africa from 2000-2018. Using panel data, the random coefficient model was employed to examine the effect of a novel variable, such as the prevalence of undernourishment and others (government expenditure on health, population density, unemployment and out-of-pocket expenditure) on longevity. Except for a few, the findings revealed that longevity is a decreasing function of the prevalence of undernourishment in West Africa. In contrast, it was revealed that longevity is an increasing function of population density in all West African countries. The effect of government spending and unemployment on health contradicts theory in some countries, while they were in tandem with theory in other countries. Therefore, the study recommended, among others, the introduction of dynamic agricultural policies to increase income and ensure food security in West Africa.

The Asymmetric Effect of Government Spending in the United States

In this paper, we test for the presence of asymmetric effects of government spending on output and employment rate using U.S. postwar states panel data. We estimate two “endogenous” asymmetry: (i) whether negative and positive government spending change has different multiplier impact on real output and employment; (ii) whether big or small change has different effects. Our empirical results show there are asymmetric effects in terms of positive and negative government spending, but the asymmetric effect of positive and negative government spending can vary for different dependent variables and there is no significant asymmetric effect on employment. For the asymmetry of big and small government spending, we observe the same asymmetric property for output and employment. In both cases, the differences of the effect of big and small change are non-significant. Our main results are robust to intersection of “endogenous” factors effects, alternative specification (or other additional controls) and longer change interval, but asymmetric effect might differ among different production sectors.