Increase In Government Spending Research Articles

Population growth in growing and declining cities: the role of balanced-budget increases in local government spending

Population growth in growing and declining cities: the role of balanced-budget increases in local government spending

Enhancing College Access in Zimbabwe: Impact of Student Loans and Grants

This study explores how government interventions, grants, and loans influence college access in Zimbabwe, focusing on understanding the factors affecting college access and retention rates. The research aims to inform evidence-based decision-making regarding college access through a mixed research approach integrating qualitative and quantitative methods. Combining both qualitative and quantitative methods to ensure the validity and reliability of the findings. It analyses secondary data sources, such as literature, reports, and statistical datasets, to explore aspects like college access, enrollment trends, poverty rates, financial aid programs, and student loan systems in Zimbabwe. Triangulation techniques enhance the credibility of the study's findings by integrating evidence from various sources and employing diverse data collection and analysis methods, enriching perspectives and strengthening the validity and reliability of the study's conclusions. Key findings suggest that grants and loans significantly contribute to increasing college enrollment rates, particularly among economically disadvantaged groups. However, enrollment disparities persist, especially among marginalized populations like women. Despite a modest increase in government spending on education, concerns arise due to a slowdown in overall enrollment growth. Barriers to student loan uptake include complex application processes, concerns about debt burdens, and uncertainties regarding post-graduation employment prospects. The study emphasizes the importance of comprehensive policy interventions to simplify eligibility criteria, enhance financial literacy, and promote employment pathways. Using human capital and open systems theories, the research lays a groundwork for evidence-based decision-making to enhance access to higher education in Zimbabwe.

Fiscal Dominance and the Effectiveness of Monetary Authority in Nigeria 1980-2020

The study examined the existence as well as the degree of fiscal dominance in Nigeria. Annual time series secondary data for the period 1980-2020 were employed in the study. Specifically, data on fiscal deficit, public debt, government expenditure, money supply, interest rate, and real Gross Domestic Product (GDP) for the study period were obtained from the Central Bank of Nigeria (CBN, 2020), and the World Development Indicators (WDIs, 2020). The study used descriptive statistics in form of tables, and the Dynamic Ordinary Least Squares (DOLS) for long run analysis. It was established in the study that government expenditure and outstanding debt have significant positive relationship with money supply. Specifically, N1 billion increase in public debt is expected to increase money supply by N1.2 billion (t = 8.25, p < 0.01). Similarly, N1billion increase in government spending will cause money supply to increase by N1.36 billion (t = 4.29, p < 0.01). Conversely, interest rate exhibited negative effect on money supply, such that one percent increase in interest rate will bring money supply down by 150 percent (t = -2.0113, p < 0.05). With a measure of fiscal dominance with the δ of 0.28, the study concluded that there is no case of fiscal dominance in Nigeria. The study recommends that with the active counterbalancing roles of monetary policy Nigeria, the government can aggressively pursue and sustain economic growth through fiscal expansion-backed borrowings and spending.

Anti-corruption campaign and economic growth in Chinese cities: The dichotomous mechanism of network-based political competition

I study how economic growth in Chinese cities responds to the recent anti-corruption campaign, focusing on a novel mechanism of network-based political competition, whereby the removal of investigated officials creates job vacancies and triggers promotion competition within the social network of the investigated officials for the vacancies. Such a network-based competition hinges on the premise that (1) some positions are persistently occupied by certain networks, and (2) high-ranked officials help low-ranked ones to achieve promotion within the network, two facts that are well supported by the evidence. Using a difference-in-differences and an instrumental variable approach, I find that cities’ GDP growth rate registers a 2.5-percentage-point increase following the investigation of the city leader’s connected officials. City leaders create a healthier business environment, attract investments, and increase government spending, while some long-term issues, including innovation, education, and environmental protection, are compromised, indicating the dichotomous nature of political competition.

Green Fiscal and Tax Policies in China: An Environmental Dynamic Stochastic General Equilibrium Approach

Implementing green fiscal and tax policies for reducing emissions and pollution without negatively impacting economic growth remains a challenge. We aimed to determine whether environmental protection and economic growth can both be attained under a green fiscal and tax policy. Specifically, we created a dynamic stochastic general equilibrium (DSGE) model to explore the environmental, economic, and welfare impacts of green fiscal and tax policies. Additionally, a welfare analysis based on an environmental DSGE (E-DSGE) model was performed. We found that (1) raising the environmental or energy tax rate was beneficial for reducing emissions and environmental pollution. However, this approach inhibited economic growth, an outcome not conducive to improving welfare. (2) Increasing the subsidy rate for emission reduction not only incentivized businesses to reduce emissions but also improved economic growth and welfare. (3) The emission reduction mechanisms of environmental tax policies, energy tax policies, and subsidy policies are different. Among them, the environmental tax policy and the energy tax policy both reduce pollution by forcing businesses to increase their emission reduction efforts, but the former is a tax on pollution emissions, while the latter is a tax on energy consumption. However, emission reduction subsidy policies incentivize companies to increase their emission reduction efforts and reduce pollution emissions by alleviating their financial burden. (4) Increasing government spending on environmental remediation could promote economic growth. However, considering that this does not motivate companies to reduce emissions, increasing their share will lead to a reduction in emission reduction subsidies, ultimately negatively impacting social welfare. (5) An environmental tax would cause greater losses in welfare than an energy tax. These findings will enable policymakers to optimize expenditures and tax systems.

Scrutinizing Public-Private Sector Investment Spending and Budgetary Deficit in the Health Sector of Pakistan: A Time Series Approach

The public and private sector spending is crucial for appropriate resource allocation. Private sector spending makes the government to be lenient since the obligations to provide facilities to the general public are shared with the private sector. Meanwhile, public sector spending rests at the allocation of the budget. A heavy budgetary deficit can cause the government to reduce its spending. This study attempted to evaluate the interplay of private-sector spending, budgetary deficit, and public-sector spending in the health sector of Pakistan within the period from 1980 to 2023. The standard econometric technique of Autoregressive Distributed Lag (ARDL) is incorporated to find the desired results. Based on the empirical results, it is found that private and public sector spending on the health sector is a substitute for each other. At the same time, the budgetary deficit is found to increase government spending on the health sector. The study suggests that the private sector is sufficient in covering health-related issues; thus, the government can locate another sector that needs financial support. Also, a manageable budgetary deficit is not harmful if spending is carried out in the health sector.

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

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

Secure medical sensor monitoring framework using novel hybrid encryption algorithm driven by internet of things

The Internet of Things (IoT) makes intelligent identification and management possible by enabling all items to connect to the Internet and exchange data through various new technologies. In recent years, it has been noted that life expectations throughout the globe have gradually increased, which has caused the population of older people to often grow. An unstable environment has been created by a rise in the population of seniors, understaffing in medical facilities, and increased government spending on healthcare. This environment could ultimately result in the financial collapse of government healthcare programs and lower standards of care for all people. It is challenging for hospitals to care for all of the patients since patient numbers have virtually doubled every four decades. A significant societal concern is ensuring that patients have a decent quality of life. To continuously monitor a patient’s physiological characteristics using sensors on the patient’s body, healthcare monitoring systems are increasingly important nowadays. This technology can continuously check physiological data every 10 s. Nodes with sensors may measure things like blood pressure, body temperature, heart rate, and ECG signals. Let’s use some pre-processing methods once the sensor data has been collected to eliminate duplicates, mistakes (outliers), and missing values. With the support of a creative technique, this healthcare monitoring system has enabled safe IoT-based communication. The triple protection of improved AES, modified RSA, and revised Paillier encryption would raise the bar for security measures.

How US Fiscal and Monetary Policy affect the GDP of Countries with Fixed and Flexible Exchange Rates: Estimates using Korean Data from 1963 to 2022

The simplest large country IS/LM/BP model (Mundell-Fleming Model) predicts that an increase in Government spending in the US would cause an increase in Gross Domestic Product (GDP) for countries with flexible exchange rate regimes and decreases in GDP for countries with fixed exchange rate regimes. In contrast, increases in the US money supply would cause an increase in GDP for countries with fixed exchange rate regimes and decreases in GDP for countries with flexible exchange rate regimes. This paper uses a solution to the omitted variables problem of regression analysis to estimate the effects of US fiscal and monetary policy on the Republic of Korea using quarterly data. The data splits into two sections: (1) from 1962 through 1997, Korea had a fixed exchange rate regime and (2) from 1998 through 2022, Korea had a flexible exchange rate regime. The empirical results fit the Large Country IS/LM/BP predictions.

Evaluating Fiscal Performance: A Fixed-Effect Panel Threshold Approach to National and Supranational Rules *

Fiscal rules are designed to prevent budget deficits arising from frequent and abrupt changes in countries' fiscal policies. These changes can be attributed to shifts in regional and global economic conditions, as well as short-term decisions made by governments. Recently, the COVID-19 pandemic has led to increased government spending and borrowing, rendering governments more vulnerable. In this context, the implementation of fiscal rules has gained renewed attention. However, to construct a more resilient infrastructure against future crises, it is not only the national fiscal rules that are critical, but also the presence of supranational fiscal rules that can ensure coordination and discipline among countries has become increasingly important. This study, therefore, seeks to analyze the impact of national and supranational fiscal rules on fiscal performance in 31 advanced economies over the period 2000-2020, utilizing the fixed-effect panel threshold model approach. The results indicate that national fiscal rule implementations become effective after a certain threshold level, whereas supranational fiscal rules are effective both below and above a specific debt threshold. This implies that while both types of fiscal rules are effective, supranational rules stand out in terms of their magnitude and their effectiveness even at lower levels of debt. These findings are expected to guide policymakers in evaluating fiscal rule policies and balancing local needs with the achievement of regional objectives.

Does household debt affect the size of the fiscal multiplier?

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

HUBUNGAN GOVERNMENT SIZE DENGAN KESEJAHTERAAN DI INDONESIA: Peran Moderasi Bonus Demografi

People's welfare is one of the important goals in the RPJMN 2020-2045 and the Golden Indonesia Vision 2045. One of the government’s roles in realizing welfare is through fiscal policy in the form of government spending, which is assessed by the ratio of government spending to GDP or government size. This study aims to determine the relationship between government size and welfare, especially the role of demographic dividend in moderating the relationship between government size and welfare using panel data of 34 provinces in Indonesia in 2012-2021 and the Fixed Effect Model (FEM). The results show that an increase in government size reduces GRDP per capita, but the existence of a demographic dividend through a low dependency ratio is able to reduce the negative relationship of non-optimal government spending on GRDP per capita. As for poverty, government size is able to reduce poverty, but the presence of the demographic dividend has not been able to play a role in increasing government spending that is more efficient and targeted for the purpose of poverty alleviation. Furthermore, the diversity of regression results obtained based on Indonesia's sub-regions indicates that there are still inequalities in budget planning, the quantity and quality of human resources especially productive age population, and the availability of jobs.

Anti-inflationary Policy in Russia and Steps for Reducing the Volatility of Inflation

Inflation as a process of monetary depreciation is a debatable issue for many theorists. It is formed under the influence of various reasons: monetary emission, increased government spending, global crises, budget deficit, monopoly of big companies on price determination, trade union monopoly, and others. There are many types of inflation, which are classified depending on a specific feature (the rate of price growth, the nature of the flow, causes, etc.). The paper concludes the need to focus more attention on anti-inflationary policy, while considering not just monetary levers but also non-monetary levers, follow modern trends and look for better mechanisms. The results caused actions of a well-coordinated mechanism of public authorities and their cooperation with credit organizations, the principle of simplicity and publicity, improving financial literacy of the population and considering all available opportunities in the information society. By implementing these steps, the state can more effectively influence to bring about anti-inflationary policy. The materials of scientific research can be useful to specialists in the economic field, scientists, postgraduates, undergraduates.

Public spending and economic growth: Evidence from the Western Balkans

The objective of this study is to examine the relationship between public expenditures, foreign investments, and the growth of the Gross Domestic Product (GDP) for the years 2002-2021 in the countries of the Western Balkans (BB6) and Croatia. The analysis includes data on $2.8 trillion of GDP, $668 billion of public expenditures, and $160 billion of FDI for these states. The methodology used in this study is based on a detailed examination of public expenditures and their impact on the Gross Domestic Product. This article investigates two hypotheses, thoroughly assessing their impact on GDP growth. Through the use of the Ordinary Least Squares (OLS) econometric model, concrete results with over 95% reliability have been obtained. The variables are determined based on multiple regressions for the findings we will obtain based on econometric calculations using the fixed effects, standard deviation, mean, and linear regression models. The findings of this study relate directly to the stated aims and objectives of the publication. The results presented in the study are an essential component of the study's conclusions. We found that some independent factors have a uniform impact on GDP growth, while others have a significant impact on real growth. Also, our findings confirm economic theories that argue that an increase in government spending leads to an increase in GDP. The data show that public investment in the Western Balkans has historically been overlooked, a gap in the literature that our research attempts to fill.

GOVERNMENT'S STRATEGY TO OVERCOME THE IMPACT OF FISCAL AND MONETARY POLICY ON THE INDONESIAN ECONOMY

The government's strategy was previously under pressure to improve the economy, one of which is the implementation of fiscal policy. This is because the Covid-19 pandemic in previous years had an impact on all sectors, especially the financial sector. Now with its fiscal policy adjusting between government revenue and spending. Part of the government's fiscal policy during the pandemic, namely the tax relief program aimed at easing the burden on taxpayers and reorienting the 2020 State Budget to increase government spending. Through in-depth research and analysis of the government's strategy for overcoming the impact of fiscal and monetary policies on the economy, it is hoped that a better understanding of government actions in encouraging inclusive and sustainable economic growth in the Indonesian economy will be provided.

ASSESSMENT OF STATE SUPPORT OF THE ECONOMY IN A CRISIS

In conditions of economic crisis, government agencies often adopt a number of programs in order to stabilize the economic situation in the country. Such measures may include increased government spending, lower tax rates, or financial assistance to certain sectors of the economy. However, in the process of implementing such measures, the state should monitor the effective use of public resources. Therefore, the state audit is necessary to ensure transparency and efficiency of the work of state bodies, as well as to improve the financial results of the state as a whole. In the context of the economic crisis associatedwith the post-pandemic period, geopolitical and geo-economic instability, the role of the state audit in theimplementation of anti-crisis measures becomes even more important.An important aspect of this work is the identification of problems related to the evaluation of the effectiveness of the state audit and the limitations faced by auditors when conducting a state audit.The purpose of this study is to study the role of the state audit in improving the efficiency of the use of funds in the framework of measures to overcome crisis phenomena on the basis of an improved methodology for evaluating effectiveness.The methods of assessing the effectiveness of macroeconomic policy based on the experience of thegovernments of the G7 countries have been studied. The methodology of the process of studying the components of the crisis impact of this policy, including the definition of success criteria, has been developed.Recommendations for improving the anti-crisis strategy in the context of global disasters are proposed. The results of this study remain relevant in the context of the current economic crisis caused by geopolitical tensions.

Estimating tax and government spending multipliers in China

ABSTRACT In recent years, China has implemented unprecedented fiscal policies, prompting crucial questions: are tax cuts effective in stimulating output and is the output effect from tax cuts greater than government spending in developing countries? This article addresses this ambiguity by providing a novel method to identify China’s tax and government spending shocks in a SVAR framework. The results show that both tax cuts and increased government spending positively impact output. The estimated tax multiplier is 2.4 (3.6) after 8 (20) quarters while the government spending multipliers are 0.3 (0.8), suggesting that tax cuts have a greater impact on output than government spending. The results above survive after a set of robustness checks. The findings contribute to the ongoing debate on the effectiveness of fiscal policy tools in developing economies and suggest that targeted tax measures could be a potent instrument for stimulating economic activity.

Higher education in Russia: Facts and figures

Subject. This article focuses on the issues of development of human capital, which is the most valuable resource for any modern State. These issues are directly related to personnel sovereignty, Russia's innovative development and ensuring its national security. Objectives. The article aims to identify the trends in the development of the national institution of higher education in Russia. Methods. For the study, I used general scientific methods of analysis, synthesis, comparison, and forecasting. Results. Based on the study of changes in macroeconomic indicators, the article identifies a trend towards a decrease in interest in higher education due to a number of objective economic reasons that determine the choice of young people in favor of specialized secondary education. Conclusions and Relevance. In the light of the trend of increasing government spending, the analysis of the changes in financial indicators made it possible to draw a conclusion about the general social orientation of national projects and programmes, despite the most difficult conditions for the formation of the federal budget of Russia at present. But a difficult priority problem is a steep increase in the budgetary provision of the quantity and quality of higher education in Russia in the situation of the need to modernize it and maintain a high level of the human development index. The figures, facts, opinions and conclusions presented in the work can be used in the scientific and practical activities of specialists in the field of public finance and demography, as well as in the educational process of higher education.

The Impact of Human Development Variables on Agricultural Growth in Iraq for The Period 1990 - 2022

Despite the importance of agricultural sector in Iraq, the reality indicates the inability of this sector to meet the needs required of it, as the reason for this lies in the fact that it is managed by individuals who do not possess the most basic elements of human development, the study aims to measure and explain the impact of human development variables in raising the agricultural growth rate in Iraq during the period from 1990-2022. In order to apply the quantitative aspect of the study, the agricultural output growth rate was adopted as a dependent variable Y. As for independent variables, they included agricultural capital X1, mechanical technology X2, chemical technology X3, agricultural labor X4 and agricultural education X5, depending on the statically software E-views10 and its tests according to the ordinary least squares method (OLS), the results showed the significance of the variables of capital and chemical technology with a positive effect in agricultural growth rate in short and long terms. The negative significant effect of mechanical technology and labor force appeared only in long term, while agricultural education appeared to have a significant and positive effect in the long term. The most important conclusions were reached was that human resources contribute to the development of agricultural businesses until they are considered the main means of achieving large-scale production. We recommend increasing government spending in the areas of education, training and rehabilitation in rural Iraq, as it enables the population to employ their skills and experience in raising the rate of agricultural growth.

Can passive monetary policy decrease the debt burden?

Large expansionary fiscal measures are often implemented with monetary accommodation during an economic crisis. When a government is highly indebted, and the timing of switching to the conventional regime M (passive fiscal/active monetary policies) is uncertain, a government spending increase in regime F (active fiscal/passive monetary policies) increases government debt. Such regime uncertainty dampens inflation and debt revaluation effects. Also, as regime uncertainty generates a smaller real interest rate decline, debt servicing costs fall less, and tax revenues increase less, than in the fixed regime F. These factors contribute to reversing the debt decline for a spending increase in the fixed regime F. The result holds under adverse supply shocks and potentially higher capital taxes, relevant factors in the post-COVID U.S. economy.