Financing Public Goods Research Articles

A Systematic Literature Review on Islamic Expenditures

The purpose of this study is to identify past research trends on Islamic spending, evaluate research collaborative relationships, and identify future research directions.It uses 14 articles published between 2003-2022 about Islamic Expenditures indexed in Scopus (Q1-Q4) using a qualitative and quantitative approach, the Bibliometric method and Systematic Literature Review (SLR). This study uses VosViewers software and Publish or Perish. It is known that the author who has the most publications on Islamic Expenditure is U.H. Umar. The article with the most citations was the article entitled "A proposed model for waqf financing public goods and mixed public goods in Malaysia". The journal with the largest number of publications is the International Journal of Islamic and Middle Eastern Finance and Management. The countries that contributed the most to the release were Malaysia, Nigeria and Pakistan. This study makes several contributions, including for future researchers, the research results can be used as a reference to identify influential authors, articles, journals, countries, findings and methods. For researchers, the results of this study can be used as a benchmark and literature necessary for the development of Shariah consumer research and to reassess the gaps in Islamic cost or cost research.

Multiple Private Goods to Finance Public Goods

Multiple Private Goods to Finance Public Goods

Bundling Private Complements to Finance Public Goods

Bundling Private Complements to Finance Public Goods

Financing Public Goods

I study whether and how shocks to the supply of municipal credit affect both the quantity and quality of local public goods. I use a difference-in-differences approach based on regulations that affected bank demand for municipal bonds. Credit-constrained municipalities cut spending, especially infrastructure investment. Public service quality deteriorates, manifested in increased water contamination and prolonged power outages. While amendments to the regulation mitigated municipal credit constraints, evidence is mixed on whether the quality of public service recovered. My results highlight the impact of financial market disruptions on local governments and people, and the unintended consequences of a post-crisis banking regulation.

СОВРЕМЕННАЯ ДОЛГОВАЯ ПРОБЛЕМА США В КОНТЕКСТЕ РЕГУЛИРОВАНИЯ СОЦИАЛЬНО-ЭКОНОМИЧЕСКОГО НЕРАВЕНСТВА

Global debt has risen dangerously since the early 2000s, but most governments and central banks are more supportive of investors, because they keep printing money and buying back financial assets to provide markets and economy with liquidity. In this regard, we can see increasing concern not only about the growing debt burden of the world economy, but also about the impact of this problem on the dynamics of economic inequality. The aim of the work is to analyse and clarify the relationships between public debt and economic inequality in the USA for the period of 1910–2018. This study concludes that the level of economic inequality is not directly related to the specific level of public debt and changes under the influence of other factors, such as taxes and government spending on combating poverty, financed by the new government debt. Modern financial policies lead to increased economic inequality in wealth, which is confirmed by the data for most countries. In many developed countries, there is a progressive taxation system that curbs the rising income inequality. However, in most of them, there are complex tax relief and deduction systems for long-term investors, the problem of offshore and tax avoidance remains unresolved, which creates great obstacles to solving the problem of the growing economic inequality. In the context of the galloping inflation of financial assets, the growth rate of labor income is guaranteed to be lower than the growth rate of investment income. In the recommendations, the author justifies the modern problem of the public debt growth. The main risk in addressing this problem in the context of economic inequality regulation is the risk of increasing intergenerational economic inequality. We see how the tax burden is being transferred to future generations, while modern taxpayers have better opportunities to improve their quality of life, accumulate adequate pension capital and generally live with a higher level of financing of public goods. All this may not be the case for future generations of taxpayers due to the likely exacerbation of the debt problem in the future, since they will either have to pay more taxes on their income, pay a high inflation tax, or go to reduce public spending and finance public goods to solve the “unsolvable debt problem”. In this regard, the main recommendations today are to make every possible effort to contain the growth of public debt to a rate no higher than the growth of the economy; to develop a system of fiscal regulation of investor wealth and investment income; to optimize inheritance taxes; and, of course, to continue solving the problem of tax avoidance and offshore.

Negotiating Density and Financing Public Goods in Vancouver and New Taipei City: A Development Rights Perspective

ABSTRACT This article examines two density-based value-capture mechanisms – community amenity contributions (CAC) in Vancouver, Canada, and transfer of development rights (TDR) in New Taipei City, Taiwan – that planners use to finance public goods. To understand the differences in the design of the mechanisms, negotiating dynamics, actors involved, and types of public goods financed, we propose three perspectives on development rights: absolute ownership, bundle of rights, and public asset. We find that the public asset perspective underpins Vancouver’s CAC, whereas in New Taipei City’s TDR development rights are treated more as a commodity, a concept rooted in the absolute ownership perspective.

Tax Enforcement, Public Spending and Tax Rates: Evidence From the Ghost Buildings Program

Stricter tax enforcement can raise tax collections, finance public goods provision and lower the efficiency costs of raising taxes. We study these links in the context of the Ghost Buildings program: an anti-tax evasion policy that detected buildings not reported on land registry in Italy. Using cross-municipality variation in scope for enforcing buildings’ registration, we show that tax collections account for around three-fourth of the projected revenue increase. We find complementarity between enforcement and local tax rates on property and income, which ultimately led to larger investments in schools. Exploiting a discontinuity in incentives for complying with the program, we show that constraining local administrators’ discretion in enforcing tax collection was a crucial mechanism.

The Effects of Immigration on Labour Tax Avoidance: An Empirical Spatial Analysis

We investigate whether the geographic concentration of non-EU immigrants in the various Italian provinces affects labour tax avoidance (LTAV) practices adopted by firms located in the same provinces, as well as in the neighbouring provinces, and operating in construction and agriculture industries that mostly employ immigrants in Italy. For this purpose, we develop a LTAV proxy based on the financial accounting information of a sample of 993,606 firm-years, disseminated throughout the 108 Italian provinces, over the period 2008–2016. Our results, based on a Spatial Durbin Model panel regression, reveal a statistically significant positive association between the concentration of non-EU immigrants and LTAV at province level, as well as the presence of spillover effects among neighbouring provinces. Our findings are robust to several additional analyses, including instrumental variable estimations. Our study provides empirical support to previous structuralist or marginalization theories holding that socioeconomically marginalized groups, such as non-EU immigrants, are more likely to be involved in labour exploitation practices, which could underlie our LTAV outcomes. Furthermore, it supports the need for tax authorities to strengthen labour inspections, coordinated at national level, especially in those contexts where non-EU immigrants are mostly employed. On the other hand, a greater social integration, assistance, and recognition of rights of immigrants may help to alleviate their situation of weakness that makes them more vulnerable to LTAV practices. Finally, tackling LTAV, associated with the underemployment of immigrants, may prevent its negative effects for society arising from the reduction of public resources to sustain the social welfare and finance public goods and services.

Commodity taxation and regulatory competition

The purpose of this paper is twofold. We first investigate whether product market regulations affect commodity taxation in open-to-trade economies, and second, we study the strategic interaction in regulatory measures between trading partner countries. We present a two-country general equilibrium model in which destination-based commodity taxes finance public goods, and product market regulation affects both the number of firms in the market and product diversity. Based on data for 21 OECD countries over the 1990–2008 period, we provide empirical evidence suggesting that product market regulations are strategic complement policies and that domestic regulations have a negative impact on domestic commodity taxation.

Commodity Taxation and Regulatory Competition

This paper studies competition in commodity taxation and product market regulation between trading partners. To explain the strategic interaction between governments and regulators, we present a two-country general equilibrium model in which destination-based commodity taxes finance public goods and product market regulation affects the number of firms in the market. We provide empirical evidence based on data for 21 OECD countries over the 1990-2008 period. Our results suggest that commodity taxation and product market regulation are interdependent policies. We confirm the absence of strategic interaction in commodity taxation between governments. Finally, we show that domestic regulation has a negative effect on domestic commodity taxation and that product market regulation is a strategic complement policy.

A proposed model for waqf financing public goods and mixed public goods in Malaysia

PurposeThe purpose of this paper is to formulate a model for waqf financing of public goods and mixed public goods in Malaysia which constitute the country’s federal government expenditures. The model is built on the basis of understanding the concept of waqf, learning from waqf institutions of the past and present and addressing specific Malaysian waqf issues.Design/methodology/approachThis study uses both primary and secondary data. The primary data originate from semi-structured interviews of waqf academicians from the Islamic economics and Islamic finance fields, waqf government officials and private sector institutions that are involved in waqf management. The secondary data come from the Malaysian Federal Constitution, law enactments, books, e-books, bulletins, journals, conference proceedings, government reports and websites.FindingsBy synthesizing the data, it is found that return from cash waqf investment in unit trust can be used to finance 11 items of federal government expenditures. The overall process can be managed by Yayasan Waqaf Malaysia through a collaboration with an Islamic unit trust firm.Practical implicationsThis research shows how waqf can practically assist the Malaysian federal government in financing public goods and mixed public goods. It indirectly shows an alternative source of financing for these goods. Other economies can also learn and adapt from the model developed in this paper.Originality/valueThis paper attempts to revive the function of waqf as a provider of public goods and mixed public goods from Islamic history. Inadvertently, this paper also introduces waqf as a possible fiscal tool.

Can the fiscal authority constrain the central bank?

The fiscal theory of the price level (FTPL) suggests, in its extreme form, that the fiscal authority always constrains central bank behavior. A Fisherian model is used to show that fiscal policy can be irrelevant for the central bank, and that a central bank can act independently, even when constrained to monetize the government debt. In a model with secured credit and scarce collateral, which can explain low real interest rates, the valuation of consolidated government debt needs to account for inefficiency and liquidity premia. The fiscal authority may wish to tolerate inefficiency so as to finance public goods provision.This article is part of a Special Issue entitled “Fiscal and Monetary Policies”.

Commodity Taxation and Regulatory Competition

This paper studies competition in regulation and commodity taxation between trading countries. We present a general equilibrium model in which destination based consumption taxes finance public goods, while regulation of entry determines the number of firms in the markets. We find (i) no strategic interaction in commodity taxes; (ii) regulation leads to lower commodity tax rates if demand for public goods is more sensitive to income than demand for private goods and (iii) regulation policy is a strategically complement instrument if consumers do not over value product diversity. In the empirical part of the paper, we test our predictions using panel data for 21 OECD countries over the period 1990-2008.

Problems of Financing Public Goods

Wicksell advocates unanimous consent for providing public goods. This paper reviews some existing works to fulfill Wicksell’s dream and proves that they are all ineffective. It then develops a model to solve for both the tax rate and the contribution simultaneously. It further proves that such solution, if any, is pure luck. The Wicksellian theory of direct government intervention is infeasible.

Paying to Play: Should Local Governments Rely on Assessment District Financing to Improve and Maintain Our Local Public Parks?

Due to constitutional limitations on their ability to rely on traditional financing tools like local property taxes, local governments are struggling to finance public goods and services like public parks that they have historically provided. This paper considers whether alternative mechanisms like special assessments would be justified, due to the “proximate principle,” as a primary method of funding improvements and maintenance to local public parks. It then considers the implications of using assessment district financing for the political economy of local governments and for the equitable distribution of public services at the sub-local level.

Financing Public Goods with Income Taxation: Provision Rules vs. Provision Level

Due to the use of distortionary taxation, many believe that real-world economies should attain a lower level of public expenditures than in a situation where lump-sum taxes are available. The present paper examines this hypothesis by means of the two-type self-selection model of income taxation. Based on the findings of Boadway and Keen (1993), I provide sufficient conditions for both a lower and a higher level of public expenditures in second best than in first best. In particular, it is shown that the separability assumption of Christiansen (1981) leads to under-provision of the public good in the income tax optimum.

Financing Public Goods by Means of Lotteries

When viewed as taxes, lotteries are routinely criticized as being both inequitable and inefficient. But is this an entirely fair comparison? Frequently lotteries are used in lieu of voluntary contributions by private charities and governments when taxes are not feasible. When heterogeneous individuals with quasi-linear preferences participate in lotteries whose proceeds will be used to fund a public good, we find that, relative to voluntary contributions, wagers in the unique lottery equilibrium (a) increase the provision of the public good, (b) are welfare improving, and (c) provide levels of the public good close to first-best as the lottery prize increases. For more than 500 years, governments, private charities, and civic groups have turned to lotteries as a means of financing public goods. This, despite the fact that, over the same span, alternatives to the use of lotteries became cheaper, more sophisticated, and more efficient. Governments devised significantly more effective methods of tax collection and deficit financing, while private charities benefitted from advances in marketing and communications, which opened many new channels for fund-raising. Today global lottery revenues amount to $75 billion annually. By any standard, lotteries are a huge industry and show no signs of being completely usurped in favour of other methods of financing public goods. In current economic research, however, there remains extensive debate about both the equity (see Clotfelter and Cook (1987) and Karcher (1989)) and efficiency (see Borg and Mason (1991) and Gulley and Scott (1993)) of lotteries as fund-raising instruments. Much of the analysis of these questions examines lotteries relative to other tax instruments. By this criteria, researchers have largely concluded that, viewed as tax instruments, lotteries do not appear to be a particularly equitable or effective means of revenue generation. But is this an entirely fair comparison? Lotteries are often held by private charities lacking tax power. Currently in Britain, private charities raise about 8% (or ?500 million) of their income through lotteries.' In the U.S. in 1992, among 26 reporting states, about $6 billion was raised by private charities through lotteries.2 Among state governments, legal restrictions such as Proposition 13 in California and the Headlee Amendment in Michigan as well as popular resistance to tax increases of any sort place both de jure as well as de facto limitations on the taxation schemes available to states wishing to increase revenues. Thus, lotteries may not be a substitute for confiscatory tax schemes when these

The Earliest Waqf Foundations

Previous articleNext article No AccessThe Earliest Waqf FoundationsMoshe GilMoshe Gil Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Journal of Near Eastern Studies Volume 57, Number 2Apr., 1998 Article DOIhttps://doi.org/10.1086/468624 Views: 16Total views on this site Citations: 13Citations are reported from Crossref Copyright 1998 The University of ChicagoPDF download Crossref reports the following articles citing this article:Shariq Siddiqui Muslim philanthropy: living beyond a Western definition, Voluntary Sector Review (Jan 2022): 1–17.https://doi.org/10.1332/204080521X16366613535698Mohammad Abdullah Classical waqf, juristic analogy and framework of awqaf doctrines, ISRA International Journal of Islamic Finance ahead-of-print, no.ahead-of-printahead-of-print (Aug 2020).https://doi.org/10.1108/IJIF-07-2019-0102Mohammad Abdullah Reflection of Maqāṣid al-Sharī'ah in the classical Fiqh al - Awqāf, Islamic Economic Studies 27, no.22 (Feb 2020): 79–90.https://doi.org/10.1108/IES-06-2019-0011Samuel Bazzi, Gabriel Koehler-Derrick, Benjamin Marx The Institutional Foundations of Religious Politics: Evidence from Indonesia*, The Quarterly Journal of Economics 135, no.22 (Dec 2019): 845–911.https://doi.org/10.1093/qje/qjz038Suleiman Athuman Chembea Between Charity and Financing ‘Terror’: The Dilemma of Muslim Charitable Organizations in Kenya, (Aug 2020): 143–168.https://doi.org/10.1007/978-3-030-38308-4_6Farrukh Habib, Abu Umar Faruq Ahmad Using Blockchain and Smart Contracts for Waqf Institutions, (Jan 2020): 225–244.https://doi.org/10.4018/978-1-5225-9183-2.ch013Mohammad Abdullah Waqf, Social Responsibility, and Real Economy, (Jan 2020): 23–36.https://doi.org/10.4018/978-1-7998-1245-6.ch002Azniza Hartini Azrai Azaimi Ambrose, Mohamed Aslam Gulam Hassan, Hanira Hanafi A proposed model for waqf financing public goods and mixed public goods in Malaysia, International Journal of Islamic and Middle Eastern Finance and Management 11, no.33 (Aug 2018): 395–415.https://doi.org/10.1108/IMEFM-01-2017-0001Stelios Michalopoulos, Alireza Naghavi, Giovanni Prarolo Islam, inequality and pre-industrial comparative development, Journal of Development Economics 120 (May 2016): 86–98.https://doi.org/10.1016/j.jdeveco.2016.01.002Benedikt Koehler Muhammad's Conception of Property as A Bundle of Rights, Economic Affairs 35, no.11 (Feb 2015): 52–59.https://doi.org/10.1111/ecaf.12112Engin Isin, Ebru Üstündağ Wills, deeds, acts: women's civic gift-giving in Ottoman Istanbul, Gender, Place & Culture 15, no.55 (Sep 2008): 519–532.https://doi.org/10.1080/09663690802300860Yaacov Lev The Ethics and Practice of Islamic Medieval Charity, History Compass 5, no.22 (Mar 2007): 603–618.https://doi.org/10.1111/j.1478-0542.2007.00396.xNurfadzilah Yahaya, Lionel Smith British colonial law and the establishment of family waqfs by Arabs in the Straits Settlements, 1860–1941, (): 167–202.https://doi.org/10.1017/CBO9781139505994.010

Financing Public Goods

Public goods can be financed by direct taxation or a subsidy to private spending. This paper examines the relative efficiency and distributional consequences of the two methods. Efficiency is shown to depend on the price elasticity of private spending and the trade- off between public and private spending. When this trade-off is dollar for dollar, however, a subsidy is always more efficient than direct taxation. The gains from a subsidy are larger for a mixed good than for a pure public good. Looking a t distributional effects, the author shows when richer taxpayers may prefer a tax credit to deductibility, even though they face lower prices with deductibility, and also shows when richer taxpayers prefer direct taxation to either type of subsidy. Copyright 1987 by University of Chicago Press.

Financing Public Goods with Commodity Taxes: The Tax Reform Viewpoint

Financing Public Goods with Commodity Taxes: The Tax Reform Viewpoint