Finance Science Research Articles

CONCEPTUAL APPROACH TO UNDERSTANDING BUDGET MANAGEMENT IN THE PUBLIC REGULATION SYSTEM

Based on the generalization of existing conceptual approaches to the budget management understanding in the public regulation system, a conceptual approach «Entity-Relationship-Result» Management is proposed, which made it possible to reveal the main trends in the budget management development in the public regulation system, determine its structural elements, deepen the budget management essence, characterize scientific approaches to understanding the components and principles of budget management, state your own vision of its methods and classification features. From this, a conceptual semantic model of the budget management understanding in the public regulation system is developed reflecting the list of budget management components in the public regulation system, their close relationship and coherence. The purpose of the article is the development of a conceptual approach to the budget management development in the public regulation system. Theoretical and methodological principles of the budget management development in the public regulation system is a subject of investigation. Research design. Within the article, a set of general scientific and special research methods is used. When forming the conceptual categorical apparatus, methods of analysis and synthesis, generalization and scientific abstraction were used. Abstract-logical method was used for the generalization of theoretical foundations of budget management; system analysis was used to characterize the main components, functions, principles, techniques and budget management methods; historical-logical method, the method of induction and deduction allowed to explore the conceptual approach to understanding the importance of budget management in the public regulation system; graphical method was used to visualize the results of the study. Conclusions. Therefore, budget management is one of the tools to overcome problems, which arise in the process of formation and use of budget funds in the conditions of their scarcity. The matter of justification of optimal and effective methods and tools of effective budgetary management is important not only for Ukraine but also for other states, in particular the post-Soviet space. At the same time, the global experience does not give universal decisions on the budget management organization, since each state has its own budgetary system, peculiarities of building a budgetary system and its conceptual management approaches that can be used in the budgetary sphere (New Public Management, Good Governance, Multi-level Governance, Network Management and E-government). It is proved that, although budget management is widely used in financial science, a conceptual approach to its understanding has not been formed yet. Critical analysis of the literature has made it possible to substantiate that in the study of budget management, conceptual approaches of public administration are used, which do not allow revealing all its peculiarities in full. We have offered our own conceptual approach «Entity-Relationship-Result» Management, which made it possible to reveal the main trends in the budget management development in the public regulation system; determine its structural elements, deepen the budget management essence (a complex of interrelated functions, principles, methods, techniques and procedures used by the authorized bodies and aimed at the development and implementation of management decisions in drawing up, reviewing, approving, executing the state budget and the budgets of its territorial and administrative units to ensure efficient use of budgetary funds), offer scientific approaches to understanding the components and principles of budget management, state your own vision of its methods and classification features. This helped to build a conceptual semantic model of understanding budget management in the public regulation system. The proposed model reflects the list of budget management components in the public regulation system, their close relationship and coherence, and which are aimed at ensuring the functions performance of public authorities and local self-government bodies.

Метод теорії суспільних фінансів та його альтернативи

The method of the public finance theory is understood as a set of the following components: initial positions and worldviews; specific research methods; and the ways to verify the results. The initial assumptions and worldviews of the Western public finance theory, modern Ukrainian public finance theory and its Soviet predecessor are compared. The difference of approaches within these theories concerning worldview is revealed, namely: their conceptual and philosophical basis (materialism / idealism); traditions of using the historical method; the role of the base and superstructure in financial science; focus on value / utility in studies dealing with the nature of fiscal phenomena; differences in interpreting the basic unit of analysis (individual, group, or class); the organic / mechanistic concepts of state used; explanation of the nature of the interaction between the basic units of analysis; attitude to the positive / normative approach. The methodological orientation of the Western financial thought on methodological individualism; that of the Soviet state finance theory on methodological holism, and the lack of precision in these issues of Ukraine’s modern financial science are mentioned. The author refers to the negative trend in assessing fiscal phenomena in Ukraine from the standpoint of state-centrism and the interests and needs of the state, which arises precisely on the basis of the holistic methodological attitudes and the predominance of the organic view of the state. It is shown that modern domestic financial science is still in transition. Due to its worldview, it is a theory of state finance (financial resources of the state), while the Western science is a theory of public finance (public funds, belonging to the society as a whole). The paper outlines the guidelines for further transforming the methodological foundations of financial science in Ukraine.

THE DIVERGENCE OF FINANCIAL SCIENCE IN THE CONTEXT OF THE GENESIS OF PUBLIC FINANCE THEORY

Introduction. Financial science in Ukraine is still characterized by a state-centered approach to analyzing fiscal processes. It remains the theory of government finance, while in the West, in the course of scientific divergence, the theory of public finance has emerged, which derives their determinism from individual interests and needs. Purpose is to study the historical aspects of the theory of public finance in the process of evolutionary divergence of financial sciences. Methods. The methods of comparison, logical analysis and historical method of scientific knowledge are used in the work. Results. The process of historical divergence of financial science has been investigated, which has outlined some areas that explore public finance, corporate finance and personal finance. It is revealed that the origins of public financial management belong to the antique period, and the final awareness of the publicity of finances is laid since the establishment of constitutionalism in European countries. It is proved that the term “finance” at the time of its origin is used to describe the payment system, where the boundaries between the king's personal finances, public funds, government and bank credit are erased. It is shown that at the turn of the XIX–XX centuries, Western economic thought followed the divergence of financial science in three independent directions. It is found that the concept of “public finance” was only introduced into the scientific community at the end of the 19th century, and the use of the term “finance” is fixed in the area of corporate finance. It is established that the foundations of scientific study of financial phenomena based on deductive method and abstract approach are laid by the classical school of political economy. It is proved that the analysis of taxes and public expenditures in relation, through the prism of individual interests and subjective value, made a methodological revolution and became the last step towards the formation of the modern theory of public finance. Conclusions. The priority of domestic financial thought is its transition from the theory of government finance to the theory of public finance in the context of integration into the conceptual paradigm of Western financial science.

INCOME TAXES IN TAX POLICY FOR INCLUSIVE GROWT: A THEORETICAL DIMENSION

Introduction. Inclusive economic growth in Government’s Action Program is proclaimed as a strategic priority for the development of the Ukrainian economy, which makes it urgent to study the ways to secure it. An important role in ensuring inclusive growth is played by the state tax policy including income taxes due to both the ability of taxes to influence on the distribution of income and wealth in society, and the possibility of using them to stimulate more productive labor, improve skills, and obtain education. Purpose of the article is to identify the ways to reform income taxes in the process of forming and implementing tax policies for inclusive growth. Results. The study showed that developing income tax design that meets the requirements of inclusive growth seems to be quite difficult, since its model, which is considered the least economic efficiency (progressive income tax), is the most fair, while the least fair model (proportional tax) is the most economic efficiency. Therefore, the process of approximating various models of personal income tax to the needs of ensuring inclusive growth involves solving various problems: for a progressive tax – finding ways to increase efficiency (primarily employment incentive tools, which is a key factor for building an inclusive economy), for proportional tax – the tools of increasing equity, for personal and corporate taxes on capital income – a combination of the measures directed to increase both equity and efficiency. The tools proposed by financial science for the fulfillment of these tasks and approaches to their practical application in the EU countries are identified. Conclusions. While financial science offers a wide range of tools that can help create income taxes that meet the goals of inclusive growth, each country should choose those tools that can be effective under its conditions. In the course of such choice the numerous factors influencing effectiveness of tax measures in a particular country should be taken into account.

A FAMOUS SCIENTIST OF HIS TIME (TO THE BIRTHDAY ANNIVERSARY OF P.I.VERBA)

The article is dedicated to the birthday anniversary of Prokop Ivanovich Verba, a famous scientist and outstanding organizer of domestic financial science and education. P.I. Verba’s activity is closely connected with the creation and development of the School of Economics and the Department of Finance and Credit in V. N. Karazin Kharkiv National University. As a Corresponding Member of the National Academy of Sciences of Ukraine P.I. Verba has left a bright mark in the history of Ukrainian financial science not only by his works but also by his students. School of Economics of V. N. Karazin Kharkiv National University keeps a bright memory of this outstanding man, a wonderful teacher and mentor of young people.

Податковий механізм як фінансово-управлінська категорія

The purpose of the article is to deepen the essence of the as a financial and managerial category, which has its own components and interrelations with the policy and system under the conditions of fiscal and regulatory impact on distribution relations. The versatile approaches of scientists to the disclosure of the category tax were revealed. The differences in the scientific approaches to the purpose of the were shown. Emphasis is placed on the expediency of isolating the specific purpose of the mechanism.The role of the in ordering the distribution relations at the stage of primary and secondary distribution has been clarified. The scientific approaches to the construction of the were presented. The elemental approach and the instrumental approach in the construction were distinguished. The sequence of formation of components of the and their influence on distributive relations were traced. Author proposes to consider the as a financial and managerial category. The category mechanism and the sequence of its application in financial science were characterized. The relationship between the and the financial was shown. The importance of optimization in the implementation of the fiscal and regulatory functions of taxes was argued. The relationship between management and functions was analyzed. The necessity to combine management and functions in determining the has been proved. The essence and selection of regulation methods for their implementation in the were characterized. Classification groups of methods and instruments have been identified. Algorithm of policy implementation through and system has been formed. The basic components of the have been determined. The author defines the and justifies its advantages.

The ethos of financial and legal science

The ethos of financial and legal science

On the History of Financial Education and Science in Russia: a Forgotten Sientist V. R. Idelson

On the History of Financial Education and Science in Russia: a Forgotten Sientist V. R. Idelson

ФИНАНСОВАЯ СИСТЕМА РОССИИ: ПОДХОДЫ К ОЦЕНКЕ ВЛИЯНИЯ НА НАЦИОНАЛЬНУЮ ЭКОНОМИКУ

An attempt is made to analyze the Russian financial system based on the existing international OECD methodology according to the Central Bank of Russia. The modern controversial views on the concepts of the impact of the financial system on economic growth, existing in the world financial science, are presented. The fundamental theories of economic growth in the format of production functions and the author’s interpretation of macroeconomic identity are presented; the role of labor and capital in economic growth, as the main factors subject to qualitative changes to the greatest extent, is noted. As an intermediate result for the analysis of the financial system of the Russian Federation, a coefficient is proposed that allows one to potentially analyze the influence of the qualitative characteristics of the state of the financial system on the socio-economic development of the national economy. The hypothesis about the influence of the financial system on the state of the national economy has been confirmed.

THE FINANCES OF THE UNITED TERRITORIAL COMMUNITIES IN THE FINANCIAL SYSTEM OF UKRAINE

Introduction. In the context of reforming the system of local self-government and territorial organization of power, they need to rethink a number of important theoretical postulates of domestic financial science through the prism of improving existing and developing new conceptual approaches to the theoretical substantiation of the finances of the united territorial communities in their territorial communities. After all, the study of OTG finances, with their permanent dominance in local finance, is the basis for effective implementation of the reform of financial decentralization and local development. Moreover, upon completion of the reform, the UGT finances will prevail, completely changing the local finances. Purpose. Given the limited theoretical and practical experience of domestic scientists on the finances of the united territorial communities, the purpose of the article is to find out the place and role of OGF finances in the financial system of the state. Methods. The methods of abstraction, generalization, induction, deduction, synthesis were applied in the study of the role and place of OGF finances in the financial system of the state, as well as the system method. Results. The views of domestic and foreign theorists and practitioners on the scientific substantiation of the financial system of the state and its structural components have been systematized. The LTG finances in its structure and the role for modifications of local finances was determined. This made it possible to identify OTG finances as an area of the financial system and to formulate a science-based approach to their knowledge, while separating OTG budgets, utility and financial institutions and local borrowing in their structure. Discussion. It is advisable to carry out further scientific researches of OGF finances on the basis of the formed theoretical substantiation of OGF finances as an integral part of the financial system of the state with the corresponding structural structure – links that are interconnected and interact.

КОНЦЕПТУАЛЬНІ ПОЛОЖЕННЯ ДОСЛІДЖЕННЯ СУТНОСТІ БЮДЖЕТНОЇ БЕЗПЕКИ

Within the article, conceptual provisions of the essence research of the category "budget security" are considered. In particular, the nature of such definitions as "security" and "budget" is analyzed, which allowed us to clarify basic scientific concepts for considering their content. The study of certain provisions of security research as a universal scientific category allowed specifying its main characteristics, and the knowledge of the essence of the definition of "budget" as an integral part of the conceptual and categorical apparatus of financial science made it possible to establish the existence of a multivariate approach to understanding its nature. This contributed to the description and identification of specific provisions, and their consideration will justify the essence of the category of "budget security", given its complex structure.

Research on the Relationship Between FinTech Attention and Its Sector Returns

With the development and application of Internet technology, investors usually use Internet search engine to investigate the corporation and related information before making investment decision. As a result, Internet search engine has become an indicator of investors’ attention. This paper uses FinTech Baidu index derived from Baidu public platform to measure investors' attention, as well as FinTech index from Shenzhen stock exchange, whose index code is 399699. SZ. The index data covers a date range from June 9, 2017 to June 30, 2019. Empirically, this paper discusses the impact of online attention on the stock returns of financial science and technology sector. A vector auto-regressive (VAR) model is built to reveal the correlation between Fintech investor attention and its sector returns. Furthermore, the granger causality, impulse response and variance decomposition are analyzed. Granger causality test result indicates that FinTech investor attention is the granger cause of the stock returns of Fintech sector, and conversely the stock returns of Fintech sector are not the cause of FinTech investor attention. That is, FinTech online attention has a certain impact on the stock returns of Fintech sector. Impulse response indicates that the impact of FinTech online attention is positive, but the effect lasts in a short term. The conclusions play an important role for investors to understand the hotspot attention on FinTech which is a new emerging market investment opportunity, and provide a general knowledge about the relation between Fintech attention and market returns.

К вопросу об использовании диспозитивных начал в финансовом праве

Currently, the financial legislation of the Russian Fe­deration is developing quite rapidly. One of the results of constant changes was the use of discretionary mechanisms of regulation in the public branches of law, which causes a heterogeneous reaction of representatives of financial and legal science for many years. In this article, the authors attempt to revisit the analysis of the content of the Budget and Tax codes of the Russian Federation in order to determine the importance and role of dispositive principles in the financial legislation.

RESTRUCTURING OF LOCAL BUDGET INCOME AS AN INALIENABLE CONDITION OF DEVELOPMENT THE FINANCIAL SYSTEM OF UKRAINE

The necessity to clarify the place in the conceptual apparatus and the restructuring of local budget incomes in the context of development the budget and financial systems of Ukraine are substantiated. The socio-economic nature of budget incomes is disclosed, the status and structure the sources of revenue is assessed, and prospects for further changes in the structure and volume of local budget incomes as an integral part of financial system are identified. In the course of research the theory and practice of revenue formation the local budgets of Ukraine, it was found that the operating procedure for formation revenues of the general government sector for a long period is characterized by chronic shortfall of funds in almost all its sub-sectors. The most acute problem is the problem of local budget deficits, which is often explained by the low level of their own incomes, thus the excessive centralization of incomes in the budget system. Administrative-territorial reform in Ukraine aimed at optimizing the structure of budget system and improving the management of budget resources objectively involves restructuring local budget incomes towards their further decentralization. Measures related to the decentralization of budget resources will undoubtedly mitigate the severity, but the problem of lack funds in the budgetary system of Ukraine is not overcome, since the key causes of lack funds and opportunities for their elimination are in the plane of organization the economy and its financial system. It is revealed that the problem, which is also on the agenda of both financial science and practice, is the ratio (subordination of concepts) between incomes and revenues, as well as between expenses and expenditures, which are key components of budgets and budgets of budgetary institutions and organizations. Their using in modern conditions is disordered, therefore contradictory. Estimating the state of centralization budget resources in 2019 at the level of local budgets indicates on the role growth of base budgets, but the share of centralized resources remains quite high, due to the significant differences in the development of territories and the need for financial equalization of their incomes at the level of individual regions. It is proposed to determine the level of financial autonomy of local authorities both on the basis of reporting data on local budget incomes and expenditures, which is commonly practiced in research, and on the basis of projected calculations. In general, it is advisable to make the calculations based on several approaches: 1) by volume of financial resources concentrated in local budgets: -in relation to the consolidated budget of Ukraine; -in relation to the consolidated budget of the region; 2) by list the sources of revenues to certain types of local budgets; 3) according to the norms set by the legislator of transfer income to certain types of local budgets. The list of subjects of study the local budgets, in addition to the financial relations that take place between different levels of budget system and the financial resources that such relationships materialize in practice, is proposed to include the sources and rates of income to the general and special funds of local budgets. This significantly expands the field of scientific research and the possibility of improving intergovernmental budgets, and financial relations in general. Key words: local budgets, budget incomes, budget revenues, budget resources, financial system, intergovernmental relations, budget decentralization.

Budget Potential of the Region: Attributive Features and Methods of Assessment

Purpose: The purpose of the article is to clarify the attributive features of budget potential of the region and to develop a method for its assessment, which allows to reflect conditions and prospects of development of regional economics and can provide practical support to financial authorities of state bodies. Design/Methodology/Approach: In conditions of systemic transformation of the public sector, the problem of efficient diagnostics of budgetary capacity becomes one of the keys in financial science and practice that determines the significance of development of scientific approaches. Findings: In connection with the urgency of the problem of development of budget potential of the regions, determining prospects of growth of regional budget profit and improvement of financial independence of regions, the article on the basis of determining qualitative and quantitative characteristics of budget potential of the region offers the authors‘ method of its assessment, which can be used to substantiate real income opportunities of the subject. Practical implications: The proposed methods, which take into account structuring budget potential of the region, is based on the use of the main financial indicators that reflect general trends and prospects of the regional economics, and provide more accurate determination of income opportunities of the subject of the Russian Federation Originality / Value. Assessment of projected budget potential will determine income potential of regions in the process of budget planning. This indicator is an information basis for preparation of budget forecasts and an indicator of effectiveness of budget policy of the region.

A Cross-Distribution User Intention Identification Based on Topic Transfer

At present, in the field of financial science, so as to make intelligent recommendation, the potential financial intention is usually analyzed by the behavior patterns of users. However, due to the diversity of user’ behavior and distribution on different platforms, the feature of users’ financial behavior are also composed of weak features. In this paper, a cross-distributed user’ behavior recognition method based on topic transfer model is proposed. To training a transfer model with APP data in source domain, the model can weaken the influence of different distributions and recognize the intention of the target user. Finally, based on the user’s APP online data, we prove that the model based on topic transfer has better performance on cross-distributed data.

A Research on the Development of Artificial Intelligence and Consumer Finance in China

Consumer finance refers to provide consumers with various financial services to meet consumer needs. China’s consumer finance is at a quick development stage, and its future is very promising. Although it has experienced a rapid development for the consumer finance industry in China, there are also many development problems: (1) The legal norms and regulation of consumer finance are not inadequate. (2) Problems arising from the over-development of “cash lending”. (3) The development problem of the scenario consumer finance. (4) Consumer finance competition is becoming increasingly fierce and challenged by disorderly market competition. (5) The problem of contradiction between financial technological innovation and consumer rights protection. With the rapid development of financial science and technology, artificial intelligence is also deepening its application in the field of consumer finance, including credit reporting, intelligent risk management, intelligent marketing, intelligent customer service, intelligent collection and intelligent regulation. Consumer Finance which is combined consumer and finance is gradually infiltrated by Artificial Intelligent. Consumer finance companies will rely on more help of machines and Artificial Intelligent to develop consumer finance. Although there are many challenges and problems in consumer finance at present, Artificial Intelligence will have more applications in the field of consumer finance, so as to make consumer finance smarter.

Triumph of the Empiricists: The Birth of Financial Data Science

The authors situate financial data science within the broader history of econometrics and argue that its ascendance marks a reorientation of the field toward a more empirical and pragmatic stance. They also argue that owing to the unique nature of financial information, financial data science should be considered a field in its own right and not just an application of data science methods to finance.

Finanzwissenschaft. Vorlesungen 1894–1897 by Max Weber (review)

Book Reviews 125© Max Weber Studies 2019. or a party machine driven process of party competition with popular election of the President as in the USA, is a matter of historical chance, and the opportunities for occasional and professional politicians are different in all of these political systems.6 But toward the end of the same work Weber employs his typology of legitimate ‘Herrschaft’ to predict with complete certainty that all revolutions will end up in the ‘spiritual proletarianisation [of the following] in order to achieve “discipline”’.7 Weber rhetorically plays both registers , contingency and possibility and quasi deterministic outcomes, depending on the political judgments he is seeking to draw and the positions he is seeking to discredit. Curiously, Palonen often follows a similar polemical strategy when arguing with opponents of parliamentary politics, as in his dispute with Arendt, though he claims to be merely invoking the contingent aspects of Weberian politics. This is not to say that Palonen’s ‘one-sided’ approach of focusing on ‘chance’ does not yield great interpretive insight across breadth of Weber’s political thinking. It most certainly does. It is merely to say, that given the sprawling nature of Weber’s work, we all face the danger that our ‘one–sided’ interpretations of his many concepts, categories, and developmental tendencies, may turn out to be too one-sided. Peter Breiner University at Albany, State University of New York Max Weber, Finanzwissenschaft. Vorlesungen 1894–1897, edited by Martin Heilmann, with Cornelia Meyer-Stoll (Max Weber Gesamtausgabe III/3; Tübingen: Mohr Siebeck, 2017), xiii + 443pp. (hbk). ISBN 978-3-16-153076-0. €194.00. In the autumn of 1894 Max Weber moved from Berlin to Freiburg, following his appointment as a Professor of ‘Economics and Financial Science’ in the state of Baden. The title was no mere formality: during the winter semester of 1894–95 he lectured four times a week on ‘general and theoretical economics’, and four times a week on ‘financial science’, what we would today call ‘public economics’. He 6. Max Weber, ‘The Profession and Vocation of Politics’, in Political Writings, ed. Peter Lassman and Ronald Speirs (Cambridge: Cambridge University Press, 1994), pp. 336-52. 7. Ibid., p. 365. 126 Max Weber Studies© Max Weber Studies 2019. only began reading and preparing for these lectures in late July 1894; the manuscript upon which these lectures is based has all the signs of work under pressure, prepared from lecture to lecture, without time for even a properly organised expository framework. The state of Baden required those civil servants working in financial administration to have taken university courses in mathematics, agriculture, manufacturing, economics, and public finance, in addition to the core law subjects, and the university was obliged to run a public finance course every semester. However, while Weber had 24 students in the autumn of 1894, only one of them was on the public administration pathway; the remainder were law students. Other members of the faculty also taught the course; Weber only did so once more before he left for Heidelberg in 1897, and he never taught the subject again. By contrast, before he broke off his last complete course in theoretical economics in the early summer of 1898 he had taught this course five times. From this comparison, and the sometimes scrappy nature of his lecture notes on public finance, we could easily presume that he ended up teaching this subject simply because it went with the appointment. Why, however, was he able he teach the subject at all, let alone four times a week for weeks on end? Weber had lived in his parents’ Berlin house since 1886, working as an unpaid court clerk, preparing a doctoral dissertation supervised by Levin Goldschmidt, Professor of Commercial Law, and then in 1890 passing the second state law examination which formally qualified him for legal practice. But he then embarked on a second dissertation that would qualify him to teach law, eventually publishing this as a book on Roman agrarian history in October 1891, and gaining the right to teach in February 1892. From the spring of 1892 he lectured in the Law Faculty, substituting for his former supervisor , but was not even made...

DOGMATISM AND ORTHODOXY ISSUES OF DOMESTIC FINANCIAL SCIENCE

Introduction. IThe article provides a critical analysis of conceptual framework inherited from Soviet financial science, which are not confirmed by the development of western economic science and modern practice. It is revealed that such orthodox dogmatic approach is based on the Marxist-Lenin doctrine, which testifies to the unrealized decommunization of domestic financial science. Methods. We use methods of abstraction and comparison, as well as methods of logical analysis. Results. The Unitarian view of finance, which combines public, corporate and personal finance into a single category and a common science, is criticized. It is stated that the divergence of scientific areas of private finance and public finance was carried out by Western economic thought at the beginning of the twentieth century. It is proved that the definition of the category “finance” through the concept of relations does not allow to fully reveal their essence. The limitations of the orthodox approach to determining the role of finance in the stages of social reproduction have been revealed, since it does not take into account the stages of production and consumption. The advantages of financial science of the West are pointed out as a result of a comprehensive study of social production of goods, redistribution of income, fiscal exchange and public consumption. The need to change the paradigm of the view on financial issues from state-centric to human-centric is emphasized. A critical appraisal of the orthodox interpretation of public finance functions is given. The functions of public finance are highlighted: allocation of resources to the public sector and income redistribution. Conclusions. There is a necessity of further revise the orthodox conceptual framework and use the methodological framework of the Western financial thought.