Efficiency Of Government Spending Research Articles

Privatisation and government spending efficiency: An empirical analysis in Europe

AbstractAcademic literature has made an effort to demonstrate the positive effects of privatisation reforms on government performance and economic growth. However, there is no sufficient evidence to support the benefits of privatisation in terms of government spending efficiency. This study analyses the correlation between privatisation and government spending efficiency. Our empirical results do not support a positive effect of privatisation on government spending efficiency. These findings are relevant because they suggest that, although privatisation has been usually seen as a tool to balance public finances, it does not mean that government spending efficiency will be higher after privatising State‐owned enterprises.

A tale of government spending efficiency and trust in the state

AbstractThis paper empirically links the efficiency and performance assessment of the general government, proxied by efficiency scores, to the trust in government. Government spending efficiency scores are first computed via data envelopment analysis (DEA). Then, relying on panel data and instrumental variable approaches, we estimate the effect of public sector efficiency on citizens trust on national governments. The sample covers 36 OECD countries between 2007 and 2019. We find that the more efficient countries in terms of government spending are Australia, Chile, Ireland, New Zealand, South Korea, Switzerland. Secondly, our main finding is that better public sector spending efficiency is positively associated with citizens’ higher trust in governments. In general, political economy variables and the existence of fiscal rules do not seem to significantly affect our measure of trust. The results hold using alternative proxies for public sector efficiency, alternative measures for trust, specifications with different control variables and different empirical approaches (instrumental variables).

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.

Government spending efficiency in Latin America

We assess public spending efficiency of 20 Latin American countries over the period of 2000–2019, computing data envelopment analysis efficiency scores. For the Public Sector Performance composite indicator, we use the annual data of socio-economic indicators, and for the input measure we consider Total Public Spending as a percentage of GDP, by spending category. The results show that public spending during the period under study increased, but that overall governments were not efficient, as on average they could have used 27% less spending to achieve the same levels of performance. On the other hand, governments could have increased their performance by 18% whilst maintaining the same level of spending. The most-efficient countries were Chile, Guatemala, Panama, and Paraguay, with the least efficient being Bolivia, Venezuela, Nicaragua, Suriname, and Brazil.

ELECTRONIC TAXATION AND TAX YIELD A PRE AND POST COMPARATIVE ANALYSIS

This scholarly inquiry delves into the intricate interplay among digital taxation and the consequential tax yield. The primary aim of this article is to discern the diverse methodologies by which digital tax systems can be safeguarded and maintained in Nigeria, while also exploring strategies to prevent and mitigate instances of cyber tax crimes. This endeavor is informed by the invaluable insights and lessons garnered from the experiences of other nations in their resolute battle against digital tax fraud. The concept of tax-equivalent yield pertains to the calculation of the rate of return that a taxable bond must attain in order to be on par with the yield generated by a corresponding tax-exempt municipal bond. The process of calculation serves as a valuable instrument for investors to discern and evaluate the disparities in returns between a tax-exempt investment and its taxable counterpart. A cross-sectional research design was used with a sample size determined by statistical power analysis. Secondary data was obtained from the National Bureau of Statistics and analyzed utilizing appropriate statistical techniques, including regression analysis. The model specification indicates that electronic taxation revenue has a favorable but not substantial outcome on economic expansion, while government spending has an unfavorable but insignificant impact on economic growth. The R2 of .852 suggests that the model elucidates 85.2% of the variance in GDP growth, which is a relatively high amount of variance explained. The study concludes that electronic taxation and government spending may have some impact on economic growth, but the effect is not statistically significant. The paper recommends conducting more research to identify other factors that may have a substantial influence on economic growth, improving electronic tax collection methods, and improving the effectiveness and efficiency of government spending. Policymakers should consider both statistical significance and practical significance when making decisions based on empirical research.

Analysis of approaches to measuring the efficiency of public finance in part of government expenditures

The article presents reasoned evidence of the growth of public spending in the world over the past twenty years. Using the example of the government performance index, economic growth (GDP growth rate) and GDP per capita, the absence of a rigid relationship between the amount of government spending and management efficiency is shown. The category of efficiency in public finance is analyzed. The complexity and dubitability of this category is noted. Various approaches to efficiency analysis in economics are outlined. Cost-based, targeted and effective approaches to measuring and analyzing efficiency in public finance in terms of government spending are analyzed. The author's view on approaches to increasing the efficiency of government spending is presented.

Impact of urban form on housing affordability stress in Chinese cities: Does public service efficiency matter?

Residential housing affordability stress is an important catalyst of class solidification and the growing worldwide social divide. Based on a quantitative spatial model that considers government utility and decision-making and uses nighttime lighting data, this study utilizes potential urban footprint as an instrumental variable to examine the mechanisms underlying the effects of the urban form on housing affordability stress and the moderating effect of government public service expenditure efficiency. The theoretical model and empirical results indicate the following. (i) The compact urban form increases housing affordability stress through productivity and urban living amenities. (ii) The efficiency of government public service expenditures affects industrial agglomeration externalities and public service accessibility, precipitating a negative moderating effect on the relationship between urban form and housing affordability stress. (iii) Based on LandScan data, a polycentric layout was found to weaken the compact urban form's ability to reduce housing affordability stress and reduce the government spending efficiency's negative moderating effect on public services. These findings demonstrate that the positive externalities of agglomeration production and the rationalization of government public service expenditures play important roles in housing market stabilization, which is helpful in facilitating better resource factor allocations by the government in the urban sprawl process.

A new simple test to evaluate the efficiency of government spending

The main purpose of this study is to determine the conditions that enable optimal distribution of the government revenues between capital and current expenditures, one that would maximize the firms’ and households’ utility and provide the maximum impact of the government expenditures on economic growth rate. Research indicates that for such optimal distribution of the budget to be defined, the derivatives of output functions with respect to the government capital expenditure and the government current expenditure must be equal. The obtained theoretical results serve as a basis for a test that analyzes the efficiency of the allocation of government revenues between current and capital expenditure items. The test is based on intervals established at significance levels of 0.01-0.99. If the difference between the marginal value of the production function with respect to the government's current and capital expenditure falls into any of these established intervals, the distribution of government expenses in these two directions can be considered effective at the level of significance corresponding to that interval. Research results found that governments usually cannot efficiently allocate their revenues between capital and current expenditures.

Measurement Efficiency of Local Government Spending on Poverty Alleviation in Sumatra: Output Oriented Approach With Data Envelopment Analysis

This research aims to measure efficiency of local government spending in poverty alleviation during the COVID-19 pandemic in Sumatra, Indonesia. Data Envelopment Analysis (DEA) was applied as a measurement efficiency method with output-oriented based on variable returns to scale approach.The type of data used in this study is secondary data and implements explanatory analysis. The object of our observation in this study involves total local governments in Sumatra (154 regencies/cities). It used government education spending per capita, health spending per capita, economic spending per capita, and social security spending per capita as input. The Output that we used is the poverty rate. The results show that poverty alleviation through government spending efficiency policy only can achieve by eight local governments, i.e.Deli Serdang, Simalungun, Medan, Sawah Lunto, Pekan Baru, Lampung Tengah, Bangka Barat, and Batam. Pekan Baru is the relatively most efficient regency, while Meranti has the lowest efficiency. 146 inefficient local governments should benchmark to their peer to improve their efficiency score. In addition, differences in the level of efficiency between local governments within one province also need to be inspected.

Does government spending efficiency improve fiscal sustainability?

We evaluate the impact of government spending efficiency on fiscal sustainability and fiscal reaction function coefficients for a panel of 35 OECD countries during the period of 2007–2020. To answer our research question, we first compute the magnitude of the responses of government revenues to changes in government spending as well as the coefficients of the cyclically adjusted primary balance as function of one-period lagged government debt. Next, we make use of so-called government spending efficiency scores, which efficiently indicate how governments can maintain their level of performance whilst using fewer inputs. Our results show that for the input efficiency scores obtained, countries’ fiscal balance and fiscal sustainability is directly improved by the use of less public resources, whilst maintaining the same level of output. In the cases of the output efficiency scores, the commitment of increased government outputs can lead to higher economic growth and the generation of additional government revenues, which also improves fiscal sustainability. Specifically, rationalising public expenditures without jeopardising the actual level of public goods and provision of services is a stronger determinant of fiscal sustainability, as well as for the improvement of the primary budget balance.

Fiscal Space Policies for Sustainable Development and Debt Relief: Empirical Analysis in West African Countries

Abstract The uncertainty that the COVID-19 pandemic has brought demonstrates that income redistribution and traditional debt relief mechanisms are insufficient to meet public spending needs, mitigate external debt, and comply with the UN’s Sustainable Development Goals (SDGs), which aim to reduce multilateral debt to sustainable levels. Also, West African countries have focused their attention on the long-term fight against poverty and inequality and strengthening their social programs, especially in primary health care and macroeconomic stability. However, for more than a decade, the developing and least developed countries of West Africa have faced rapidly weakening macroeconomic conditions, combining several interrelated crises such as the sharp decline in oil prices, volatile financial markets and tourism disruptions, a global recession, the crisis of climate change, and shortages of food and energy, along with the economic contraction of COVID-19. Data from these countries show that health spending increases economic growth, minimizes infant mortality rates, and reduces debt. Furthermore, increasing government spending efficiency reduces the total debt and improves the health sector, in particular.

DETERMINAN TAX MORALE PADA ORANG PRIBADI NON KARYAWAN: STUDI EMPIRIS PADA MITRA GO-JEK INDONESIA

The contribution of income tax for individuals other than those who work as employees (PPh 25/29 OP) is only about 1% in the last seven years. It requires tax awareness and voluntary tax compliance of individuals doing independent work. This study aims to examine eight independent variables that influence tax morale as an important determinant of voluntary tax compliance. This study used the mix method by testing empirical data questionnaires on respondents of Go-Jek Indonesia partners.. The selection of this group is relevant because they have a greater chance of doing tax evasion. The results of this study indicate that the factor that most influences the tax morale of Go-Jek Indonesia's partners is the reference group. Perceptions of the level of government corruption, the efficiency of government spending, and personal interests also have a significant effect on tax morale. Meanwhile, perceptions of fairness, tax rate levels, financial difficulties, and the possibility of being examined and subject to punishment do not have a significant effect on the tax morale of Go-Jek Indonesia's partners. This can be a reference for collecting tax revenues through a more persuasive approach.

EFFICIENCY OF GOVERNMENT SPENDING IN EDUCATION SECTOR IN EAST JAVA 2015-2021

This study aims to determine the level of efficiency of government spending in the education sector in the period of 2015-2021, by using a quantitative approach, Data Envelopment Analysis (DEA). Linear program of non-parametric approach with the model used namely Constant Return to Scale (CRS), which aims to calculate and evaluate efficiency values. The results of this study showed that the level of efficiency for the field of education in five districts/cities varied during the research period. The highest level of efficiency is in Malang Regency, while the lowest efficiency value is in the city of Surabaya. The cause of inefficiency in a regency/city is due to waste in the use of resources and weak management systems.

Public sector efficiency in the design of a COVID fund for the euro area

This study examines the importance of incorporating public sector efficiency considerations in the design of a “COVID Fund” in the euro area, aimed at providing insurance for member states against common health shocks. To test our proposition, we examine the efficiency of government spending on health during periods of severe resource constraints, which mirrors what occurs during pandemics like COVID-19. Specifically, we considered 19 administrations in the euro area during the global financial crisis and euro area sovereign debt crisis that followed. The results support our proposition. First, they reveal the average efficiency for all 19 administrations to be 0.950, which implies that member countries had wasted about 5% of funds allocated to health during this period. This suggests the need for the supranational institution to first of all ensure improvements in the use of public funds allocated to health by national governments in order to prevent wastage of the financial aid transferred to them during pandemics. Also, two of the four administrations that adopted the Economic and Financial Adjustment Programme of the troika (Portugal and Greece) during the twin crisis were among the most efficient. This suggest that making conditionalities an integral part of the central coordination of health funds during pandemics will result in improvements in the efficiency of funds transferred to member states.

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.

Do financial markets reward government spending efficiency?

We provide a novel set of government spending efficiency scores for the OECD countries and then assess to what extent capital markets perceive government efficiency increases (decreases) as part of the determinants of sovereign rating decisions. Public efficiency scores are computed via data envelopment analysis. Then, we rely notably on ordered response models to estimate the response of sovereign ratings to changes in efficiency scores. Covering 35 OECD countries over the period 2007–2020, we find that increased public spending efficiency is rewarded by financial markets via higher sovereign debt ratings. In addition, higher inflation and government indebtedness lead to sovereign rating downgrades, while higher foreign reserves contribute to rating upgrades.

MENYELISIK KEPATUHAN PAJAK PELAKU UMKM DI WILAYAH JABODETABEK DARI PERSPEKTIF CREATIVE TAX MORALE

The reason why people pay taxes is still questionable in various tax compliance literatures. Tax morale is believed to be one of the factors that motivate people to pay taxes. This study aims to analyze the determinants of tax morale in influencing the level of tax compliance. Using a questionnaire survey and a multivariate test procedure, this study shows that tax morale and tax compliance can be increased by decreasing the level of corruption, improving the efficiency of government spending, increasing fairness in the taxation system, reducing tax rates, and addressing financial constraints. In addition, this study also proves that there is significant difference on tax morale between age category, while other socio-demographic and socio-economic categories have no significant difference. The results of this study are expected to add references in the tax compliance literature and become a consideration for tax authorities in improving tax compliance. Keywords: tax morale, tax compliance, MSME.

Assessing the determinants of government spending efficiency in Africa

Government spending is one of the vital ways for the provision of public goods and services with a view of improving citizens' well-being. African countries have been identified by international bodies as naturally endowed with resources that serve as major financiers for many African governments yet, most countries in Africa are ranked low in human development. Though the nature of many governments is hinged on the quality of life, however, the reverse is the case for many African countries. Low development indicators as against huge African governments spending indicates low efficiency in spending. Hence, this study assesses the efficiency of government spending in Africa and examines the drivers of government spending efficiency. Adopts SFA to assess government spending efficiency while TFE model was used to examine the relationship between government spending efficiency and its drivers. Owing to macrodata adopted in the study, it accounts for the second-generation panel unit root and uses panel corrected standard error to correct for cross-sectional dependence among 40 African countries between 2000 and 2020. The frontier result revalidates government spending as an input factor to achieve growing human development in Africa. The result shows that the level of government spending efficiency depends on the size of the economy and other factors. Natural resources could be used to address the burgeon government spending efficiency when effectively utilized. The result shows that colonial legacy has a long-lasting impact on government spending efficiency. These results suggest the need for efficiency of government spending owing burgeon drivers available among African economies. We recommend the need to improve the efficiency of government spending in order to situate framework for Africa development. Effective resources utilization and a strong institutional framework are potential drivers of spending efficiency in African economies. The paper provides an empirical study on the relationship between natural resources, colonial legacy, and government spending efficiency through true fixed effect among African countries.

Government Spending Efficiency in Latin America

Government Spending Efficiency in Latin America

Does Government Spending Efficiency Improve Fiscal Sustainability?

Does Government Spending Efficiency Improve Fiscal Sustainability?