Analysis Of Fiscal Policy Research Articles

An Analysis of COVID-19 Fiscal Policies in the US and Japan

In 2020, the COVID-19 disease created an unprecedented impact on the world. It created a health crisis in many countries, causing a pandemic. Along with the health crisis, most countries fell into an immediate economic recession including the US and Japan. This paper focuses on the fiscal policies used in the US and Japan due to the COVID-19 pandemic-related economic recession in both countries. First, a detailed analysis of the US and Japanese fiscal policies is presented, analyzing their effectiveness. Subsequently, these policies were compared and contrasted to obtain a better understanding of fiscal responses around the world. Overall, this paper aims to provide a new global perspective on the implementation of fiscal policies while also aiding policy-makers in making more educated decisions for future recessions caused by COVID-19 or other pandemics.

Gender and social policy in middle-income countries: comparative welfare regime analysis of fiscal policies

ABSTRACT Gosta Esping-Andersen (1990), in his ground-breaking book, Three Worlds of Welfare Capitalism, created a decommodification index to classify advanced capitalist countries into the liberal, conservative-corporatist, and social-democratic welfare regimes. One of the most common criticisms of Esping-Andersen’s typology by feminists such as Jane Lewis (1992) is that it is ‘male-centric’ and did not address women’s unpaid work with families. Ann Shola Orloff (1993) has gone a step further in the criticism of Esping-Andersen’s typology by addressing women’s opportunity to paid employment and the capability to establish and run an independent households. I originally used the framework to analyse the socio-legal dimensions of expenditure in MICs; in this paper, the decommodification index has focused on variables that are on the fiscal side. Theoretically, this paper contributes to gender and social policy discussions on women’s access to employment and related entitlements. Empirically, it creates clusters of MICs into three based on latent class analysis and hierarchical cluster analysis of economic, social, and legal variables, such as availability of non-tax benefits to private child-care centres, provision of child-care services by the government; tax-deductible payments for child-care; provision of legal-aid for family and criminal issues.

Sustainable Economic Development Routes in Sub-Sahara Africa: A Dynamic Long-Run Relationship Analysis of Fiscal Policy, Energy Consumption and Carbon Dioxide Emissions

Purpose: This study investigates the relationship between fiscal policy, energy consumption, and carbon dioxide emissions in the sub-Saharan African region. Approach/Methodology/Design: The cross-sectional autoregressive distributed lag, common correlated effect means group, and the augmented mean group were used to analyze the long-run effect of fiscal policy, and energy consumption on carbon dioxide emissions for the period 1990–2018. Findings: The findings of this study indicate that expansionary fiscal policy drives carbon dioxide emissions, while contractionary fiscal policy mitigates carbon dioxide emissions for the sub-Sahara African region. The study's findings also indicate that an increase in renewable energy consumption help reduce carbon dioxide emissions, while non-renewable energy consumption causes carbon emissions to rise. Similar results were obtained for the various income-based economies except upper-middle-income economies that recorded insignificant long-run effect of fiscal policy, renewable energy and non-renewable energy consumption on carbon emissions. Practical Implications: The significant role of expansionary and contractionary fiscal policies established from this study’s results indicate the possibility of economic managers of various nations to promote sustainable development through fiscal policy implementations. Thus, governments of various economies could use fiscal policy especially expenditure as a tool to ensure sustainable development. Originality/value: This study innovates by employing econometric tools that deal with the problem of cross-sectional dependence that may exist among the study variables. This study innovatively considers the income levels of the selected countries to ascertain the role of income levels in the dynamic relationships between fiscal policy and carbon emissions, which is novel in this area of study within the Sub-Saharan African region.

Model Makro-Ekonometrika Postur Anggaran Pendapatan dan Belanja Negara (APBN) Indonesia

This research aims to develop a Macro-Econometric Model of State Budget Posture and its Application for Impact Analysis of Fiscal and Monetary Policy. The approach used is the Macro-Econometric model, also known as the Indonesian State Budget Posture model. The time span of the data series observation is from 1990–2019. The Macro-Econometric Model which is used for APBN Posture is a system of simultaneous equations which is estimated of using two stages least squares (2SLS) method, while the solution to solve the system of equations used the Newton method. The results of the analysis show that economic growth is 2.11 percent, but under the pessimistic scenario, the contraction growth is -2.94%, while in the moderate scenario the contraction is -1.88 percent in 2020. The budget deficit in 2020 is estimated at 6.41 percent of GDP. A budget deficit of below 3 percent of GDP is expected to be achieved in 2023. For the 2020-2024 period, the primary balance is negative, which indicates that the government does not have funds to finance debt interest, so the new debt is also used to pay debt interest. It is more appropriate to finance the budget deficit from domestic sources of funds in order to avoid fluctuations in rupiah exchange rate fluctuations.

The Ararat Fiscal Strategy Model: A Structural Framework for Fiscal Policy Analysis in Armenia

The Ararat Fiscal Strategy Model: A Structural Framework for Fiscal Policy Analysis in Armenia

Credible interventionism: economic ideas of government and macroeconomic policy in the Great Recession

ABSTRACT The macroeconomic policies of advanced economies during the Great Recession were characterised by a curious mixture of unconventional market interventions executed through depoliticised governance structures. We explain this phenomenon by developing a theoretical framework that focuses on the ideational and institutional influence of government-related economic ideas by combining insights of constructivist institutionalism and historical institutionalism. Specifically, we argue that the dominant government-related idea of ‘policy credibility’ – the need to convince markets of government commitment to refrain from ‘politicised’ interventions – was crucial for the adoption of depoliticised macroeconomic interventionism. The ideational dominance of ‘policy credibility’ and its pre-crisis institutionalisation enabled significant policy interventions as long as depoliticised decision-making was maintained and consolidated. We demonstrate this argument through a comparative in-depth analysis of monetary and fiscal policy in two very different cases among advanced economies – the UK and Israel.

Fiscal competition and state pension reforms

AbstractFiscal competition literature emphasizes the need to consider fiscal implications of the flow of labor and capital across jurisdictional boundaries. This open‐economy consideration raises issues for the analysis of fiscal policies, ranging from taxation and expenditure policies to the structure of intergovernmental relations and interjurisdictional competition. Using data on state population movement and pension reforms (2002−2015), this study examines whether the adoption of pension reforms was motivated by state government competition for the mobile tax base. The findings suggest that interstate migration has an influence on states’ enactment of pension reform, and the effect differs by state population density.

Analysis of Green Fiscal and Tax Policies from the Perspective of Economy

Analysis of Green Fiscal and Tax Policies from the Perspective of Economy

A Game-Theoretic Analysis of Fiscal Policy under Economic Growth from the Perspective of MMT: Toward a Neoclassical Basis of MMT

We present a game-theoretic analysis of fiscal policy under economic growth from the perspective of MMT using a simple two-periods overlapping generations (OLG) model. We show the following results. 1) Sustained budget deficits are necessary to maintain full-employment under economic growth driven by population growth. 2) An excessive budget deficit triggers inflation, and after one period inflation full-employment is maintained by sustained budget deficits with constant price. 3) Insufficient government deficit causes involuntary unemployment, and we need extra budget deficit over its steady state value to recover full-employment. These budget deficits need not be, and must not be redeemed. Therefore, if it is institutionally and legally possible, they should be financed by seigniorage not by public debt.

Ahmadov V.

This paper evaluates the financial policy of oil-exporting Azerbaijan in the recent oil boom and bust period. Analysis of fiscal policy evaluates the fiscal sustainability and efficiency of government spending to upgrade domestic economy. Monetary policy evaluation measures the effect of the exchange rate policy on competitiveness of non-oil economy and capacity of Azerbaijan government to sustain macroeconomic stability in the oil-shock period. The share of the oil revenue in government budget increased significantly, and budget spending is directed to physical investment while investment in human capital in the form of health, education and social spending lagged behind. Aside from currency crises in 2015, macroeconomic stability has been under control, but fixed exchange rate policy impeded the competitiveness of non-oil sector and caused Dutch disease.

How to Pay for a Green New Deal Without Growth? An Analysis of Fiscal and Monetary Policies

How to Pay for a Green New Deal Without Growth? An Analysis of Fiscal and Monetary Policies

RA FISCAL POLICY ANALYSIS

RA FISCAL POLICY ANALYSIS

Контрцикличная фискальная и монетарная политика государства в области макроэкономического регулирования

The problem of countercyclical fiscal and monetary regulation has become very ur- gent in the last two decades. This article is devoted to the analysis and assessment of countercyclical fiscal and monetary policy from the point of view of the fundamental basis, as well as its practical application. The subject of this research is countercycli- cal fiscal and monetary policy from the point of view of its effectiveness in the con- text of the economic crisis. The methodological basis of the study is an overview of theoretical and practical models of countercyclical fiscal and monetary policy known in the scientific literature. The key objective of the study was to attempt to identify and evaluate countercyclical fiscal and monetary policies from the point of view of theory and practice. The result of the study was the conclusion that in a crisis, coun- tercyclical fiscal and monetary policy leads to ambiguous results, but on the whole, it is the most optimal for leveling the consequences of the crisis.

Efficiency evaluation and influencing factors analysis of fiscal and taxation policies: A method combining DEA-AHP and CD function

Efficiency evaluation and influencing factors analysis of fiscal and taxation policies: A method combining DEA-AHP and CD function

A game-theoretic analysis of fiscal policy under economic growth from the perspective of MMT

We present a game-theoretic analysis of fiscal policy under economic growth from the perspective of MMT using a simple two-periods overlapping generations (OLG) model with pay-as-you-go pensions. We show the following results. 1) Sustained budget deficit is necessary to maintain full-employment under economic growth driven by population growth or technological progress. 2) An excessive budget deficit triggers inflation, and after one period inflation full-employment is maintained by sustained budget deficit with constant price. 3) Insufficient government deficit causes involuntary unemployment, and we need extra budget deficit over its steady state value to recover full-employment. These budget deficits need not be, and must not be redeemed. Therefore, if it is institutionally and legally possible, they should be financed by seigniorage not by public debt.

Tax Policy and Firms' Financing Decisions: Empirical Evidence from the Dominican Republic

Numerous studies have tried to explain the financial behaviour of firms based on different theories. Despite the vast and rich literature, only in the last decade has attention also been focused on emerging economies. In the first place, the purpose of this paper is to investigate the determinants of the capital structure in an emerging economy, such as that of the Dominican Republic, testing the sustainability of the trade-off and pecking order theories. Secondly, we also investigated the impact of tax policy on the financial behaviour of businesses. In this perspective, this study overcomes the distorting problems associated with estimating the tax variable, as it uses data from each company's tax returns. The data were provided by the Ministry of Finance to the World Bank as part of a collaboration on the analysis of fiscal policy. A fixed-effects (FE) estimation technique has been employed to analyse the financial structure of companies. Overall, the results show that the individual determinants have a strong ability to explain the capital structure of companies, also highlighting that, in some cases, the fiscal variable influences the financial behaviour of companies

Austerity in the midst of a pandemic: Pursuing accountability through the socio-economic rights doctrine of non-retrogression

This article examines the potential of the socio-economic rights doctrine of non-retrogression to hold the state accountable for policies of fiscal consolidation (‘austerity measures’) in South Africa. These policies threaten to erode many programmes and institutions critical to the delivery of the socio-economic rights recognised in the Constitution. The article provides a contextual analysis of fiscal consolidation policies in South Africa both in the lead up to and during the Covid-19 pandemic. It examines the nature of the doctrine of non-retrogression in international human rights law, and considers how the doctrine could be translated into South Africa’s existing jurisprudential framework on socio-economic rights. It concludes by considering how the procedural and participatory dimensions of the non-retrogression doctrine can play an important role in alleviating the institutional tensions involved in the judicial review of retrogressive measures. Ultimately, the article seeks to demonstrate that the doctrine of non-retrogression provides a framework and set of principles that can advance greater accountability for rights-eroding budgetary decisions.

Subordinating Federal Transfers: Analysis of Fiscal and Electoral Policies in Russian Regions in 2013-2018

Subordinating Federal Transfers: Analysis of Fiscal and Electoral Policies in Russian Regions in 2013-2018

Macroeconomic effects of exogenous tax changes in a small open economy: narrative evidence from Croatia

ABSTRACT Following the Romer and Romer narrative approach (RR), this paper investigates the effects of tax changes (personal income tax and value added tax in particular) on economic activity in Croatia. We use the narrative approach to identify exogenous tax shocks and construct a unique time series of these shocks for the 2004–2019 period. However, as Croatia is a small open economy, we adjust the original RR modelling approach by taking into account the relevance of external (demand) shocks. Our results indicate that positive tax shocks lead to a fall in private consumption and output in the Keynesian manner. We show that, compared to direct taxes, indirect taxes exercise a stronger effect on macroeconomic aggregates, but the effect of direct taxes is statistically significant throughout the whole time horizon and does not fade out. As the main contributions of this paper to the existing literature, we highlight the following: firstly, this paper sets forth the first estimates of the macroeconomic effects of tax changes based on the narrative approach in the case of a developing economy; secondly, this study extends the original RR approach by including the effects of external shocks, making this approach more suitable for the analysis of fiscal policy in small open economies.

Of economic whips and political necessities: a contribution to the international political economy of uneven and combined development

After being recovered and expanded by Justin Rosenberg almost two decades ago, Trotsky’s concept of Uneven and Combined Development (UCD) has inspired many articles, dissertations and books, becoming the core of one of the most exciting contemporary approaches within the cacophonic discipline of International Relations. Nevertheless, the contribution of the emerging UCD literature remains largely unbalanced. Most of it revolves around the classical sociological problems of capitalist transition and state formation. As such, the UCD scholarship disproportionately belongs to the field of international historical sociology, favouring expansive explanations and broad historical questions. With few exceptions, contemporary UCD has had little to say in shorter-term, policy-oriented, International Political Economy (IPE) debates. To fruitfully inform IPE analysis, UCD must expand and refine its highly abstract conceptual toolkit. In this article, I take stock of the existing literature and offer an original contribution to the UCD-IPE framework. Specifically, I unpack the general notion of the ‘whip of external necessity’ into more granular and operational concepts, setting the foundations for a UCD-inspired exchange-rate, monetary and fiscal policy analysis. Finally, the potential of an expanded UCD-IPE framework is illustrated through considerations on the uneven and combined effects of the 2008 financial crisis.