Local Government Spending Research Articles

사회·경제·정치·정부적 요인이 지역의 사회복지 및 경제사업 지출에 미치는 영향 연구

사회·경제·정치·정부적 요인이 지역의 사회복지 및 경제사업 지출에 미치는 영향 연구

Government Spending, Gross Domestic Product, Human Development Index (Evidence from East Java Province)

Government spending is expected to improve the Human Development Index (HDI) in order to increase public welfare. Theoretically, if the number of government expenditure is increasing then the Human Development Index (HDI) will be higher as well. Based on earlier research, it was found few differences about the result of influence Government spending to Human Index. The purpose of the study was to analyze the influence of government spending and Gross Domestic Product to the Human Development Index of East Java Province (during 2014-2017). The research method using descriptive quantitative approach. Local government expenditures were analyzed by direct local government spending by looking at three aspects namely employees expenditure, spending on goods and services, and capital expenditures. Whereas, for the GDP per capita income is analyzed based on three aspects: production, income, and expenditure. Then the human development index to see the effects of these two variables based on three dimensions that exist in the human development index healthiness dimensions, dimensions of knowledge, and economic dimensions. The results showed that the local government spending income and the GDP per capita income has a significant effect on the human development index. Government spending has a significant influence on the educational dimension, while GDP per capita has a significant effect on the purchasing power of people thus affecting the economic dimension.
 Keywords: Government spending, Gross Domestic Product, Human Development Index

More than Spare Change: A Case Study of Contact and Voter Support for the Homeless in Los Angeles County, California

Research on local welfare spending for individuals and families experiencing homelessness has characterized such spending as severely limited and constrained. Studies on fiscal federalism have argued that competition between local governments prevents leaders from spending much, if anything, to assist the homeless. County governments may be further constrained from providing assistance by state constitutions or statutes. Finally, local businesses may organize and lobby for punitive, rather than ameliorative, local treatment of the homeless. In this study, we argue that ordinary voters matter for local spending for the homeless, particularly in states where they are empowered to affect local government spending through ballot propositions. Accordingly, we mobilize data from a ballot initiative in Los Angeles County and present an exploratory study of the determinants of voter support for homelessness relief. We find that range of factors, particularly partisanship and contact with the homeless, strongly predict support for spending on the homeless.

Sex Differences in the Association between Local Government Spending and Mortality: Evidence from Tennessee.

A growing body of research has demonstrated the effect of local government spending on health outcomes; however, the effect of spending on different demographic groups is unclear. We combined national and local data to examine the impact of public spending on mortality rates in Tennessee. Within-between random effects models to examine the relation between county-level spending and mortality rates. We found a significant association between per capita library and kindergarten through grade 12 education spending and mortality outcomes. We also found sex differences in the effects of per capita public health spending and highway spending. This study provides further evidence that local government spending plays a role in addressing and improving population health and suggests that public spending can have differential effects within a population.

NGOs Activities and Local Government Spending in Upper West region of Ghana: Are they Complements or Substitutes?

There is an increasing interest in the relationship between non-governmental organisations (NGOs) and local governments in terms of social spending in developing countries. However, the current literature on NGOs and social spending, especially for those pertaining to developing countries and Ghana in particular, does not examine the extent to which NGOs’ presence shapes local authorities’ spending on the provision of basic social amenities. This study examines NGOs’ presence on constituents’ opinion about local government social spending. Using the probit regression estimation approach, this study found that services provided by NGOs might be allowing local government authorities to change their spending patterns and priorities. Thus, the presence of NGOs tends to crowd-out social spending in the Upper West region. To the extent that proliferation of NGOs lowers social spending, local government authorities might also be taking advantage of NGOs operations to neglect their constitutionally mandated responsibility of providing basic social amenities in their communities of practice. This article discusses key implications for policy.

Government Spending and Local Demographics: Evidence from Moody's Municipal Ratings Recalibration

We examine how Moody’s ratings scale recalibration in 2010, which has been linked to higher county-level government spending and income, affects income and population distributions. We find that the recalibration decreases median and average per capita income and increases income inequality and the poverty rate. These effects are driven by population flows. After the recalibration, there is an increase in population, a decrease in average income of population inflows, and an increase in the average income of population outflows. Collectively, our findings suggest that local government spending affects the income distribution through changes in local population composition and income flows due to migration.

Political incentives and local government spending multiplier: Evidence for Chinese provinces (1978–2016)

This paper uses data from Chinese provinces to examine the effects of political incentives of provincial leaders on local government spending multipliers over the post-economic-reform period. The estimation based on the local projection method provides three novel findings. Firstly, the estimated cumulative relative government spending multiplier is well above unity, and it is greater in the period after 1994 compared with before 1994. Secondly, the political incentives of provincial leaders augment the local government spending multipliers, and the effects are highly significant after 1994. Thirdly, the economic boom strengthens the augmenting effects of political incentives after 1994.

The effects of corruption on the human capital accumulation process: Evidence from Vietnam

AbstractThis study aims to identify the effects of corruption on the human capital accumulation process in Vietnamese provinces/cities. I employ labour quality assessments of firms as a proxy for human capital and divide human capital accumulation into the following two processes: an educational process and a process through which educational outcomes and worker training transform into labour quality. The estimation results have some notable implications for the Vietnamese context. Corruption has both negative and positive effects on human capital. On the one hand, corruption reduces the positive effect of local government spending on educational achievements and worsens labour quality. On the other hand, the prevalence of corruption in provinces/cities increases the advantages of local schools in the competition to obtain funds from the central government; hence, corruption enhances educational achievements in those regions. The results of this study indicate that corruption adversely affects human capital overall.

Is a Stormwater Fee a Rain Tax?

AbstractActivists who oppose local government spending can defeat creative stormwater programs, often by using the slogan “rain tax” to convince the public that the financing plan is a tax increase...

Roles of Income Polarization, Income Inequality and Ethnic Fractionalization in Social Conflicts: An Empirical Study of Indonesian Provinces, 2002–2012

Previous studies have cited inequality as a major factor relating to conflicts in Indonesia, while consideration of polarization and fractionalization as drivers of conflict is limited. The current paper examined the roles of three indices (polarization, inequality and fractionalization) in explaining the incidence of conflicts in Indonesian provinces over 2002–2012. This study used income (proxied by expenditure) differences to measure polarization and inequality, with subnational data as the unit of analysis. In addition, to complete the analysis, the present study used a variety of socioeconomic indicators as additional control variables. This paper verified that the high degrees of income polarization, ethnic fractionalization and income inequality are associated with the high probability of conflicts in Indonesian provinces. It also found that socioeconomic factors such as poverty, unemployment, population and natural resources, as well as some types of local government spending are significantly associated with conflicts.

Do in-kind grants stick? The department of defense 1033 program and local government spending

The U.S. Department of Defense 1033 program transfers decommissioned military goods to local police departments. This is one of the largest grant-in-kind initiatives in the country’s history, accounting for over $5.2 billion in transferred goods and vehicles since 1997. Two features of this program are unique among intergovernmental grants, each working against the tendency to let grants supplant local resources: goods from the 1033 program are less directly fungible than monetary grants, and their acquisition entails little to no oversight by officials outside of law enforcement. While previous research shows that intergovernmental grants crowd out a large or equivalent degree of local spending, we find no evidence of crowd-out in the wake of 1033 acquisitions. The features of this program may therefore be useful when designing grants to increase local spending in a targeted category, but welfare is likely tempered by the absence of local oversight.

Pengaruh Pendapatan, Jumlah Penduduk dan Luas Wilayah Terhadap Pengeluaran Pemerintah Daerah di Sumatera Barat

This research purpose to analysis the effect of (1) income, (2) the population, (3) the area of expenditure of local government in West Sumatra. This type of research includes descriptive and inductive. This study uses BPS data 2010-2016 with data analysis method using panel regression (Pooled Analysis) and classical assumption test with stages (1) Multicollinearity test, (2) Heteroscedasticitytest. The results of this study indicate that negative income has a significant effect on government spending. Negative population is not significant to local government spending. And then, the last variable the size of the area has a significant negative effect on the expenditure of the local government in accordance with the research of Nazara and Nurkholis.

The rise and effects of homeowners associations

In the U.S., nearly 60% of recently built single-family houses, and 80% of houses in new subdivisions, are part of a homeowners association (HOA). We construct the first near-national map of HOAs using publicly recorded mortgage records for single-family homes. We use these data to document the growth and characteristics of HOAs as well as to examine their relationship with housing prices. We find that houses in HOAs have prices that are on average at least 4%, or $13,500, greater than observably similar houses outside of HOAs. The HOA premium correlates with the stringency of local land use regulation, local government spending on public goods, and measures of social attitudes toward race. The data also paint a detailed picture of the people living in HOA neighborhoods, who are on average more affluent and racially segregated than those living in other nearby neighborhoods.

In participatory budgeting we trust? Fairness, tactics and (in)accessibility in participatory governance

ABSTRACTParticipatory budgeting (PB) is a significant innovation in democracy and local development. PB provides the opportunity for citizens to engage in processes of deliberation and decision-making upon the allocation of public funds. As new critical discourse emerges surrounding this model of local government spending, a significant area warranting investigation concerns how trust, and indeed mistrust, factor into PB. Through an analysis of interviews with residents and Council staff engaged in PB processes in a county in the north of England, we highlight the ways in which issues of trust can impact on participation in these initiatives, and also strengthen relationships between voting delegates, project teams and local government. This paper argues that increasing the perceived accessibility, and reconsidering the inclusion of mass membership groups in PB, might help to create progressive, effective and trustful participation.

THE EFFECT OF REVENUE SHARES ON LOCAL GOVERNMENT SPENDING: EVIDENCE FROM PHILIPPINE PROVINCES

Intergovernmental fiscal transfer (IFT) is one of the several sources of funds of sub-national governments. There are two general types of IFT — conditional and unconditional. In many developing economies including the Philippines, the usual existing IFT is a form of unconditional fiscal transfer called revenue shares. In the Philippines, this revenue-sharing scheme is called the internal revenue allotment (IRA). Empirical literature says that unconditional IFTs are the type of fiscal transfers with the least effect on local government spending. The literature posits that the reason for this is that local governments use these transfers to substitute for own-sourced revenues such as local taxes. This explanation was formalized through a framework presented in this paper. Using panel data from Philippine provinces for the years 2001 to 2015, this paper attempted to determine the effect of revenue shares, in the form of IRA, on local government expenditures. Using different econometric methodologies, this paper arrived at several conclusions. First, IRA has a strong positive effect on total local government spending with a marginal effect slightly greater than one — much higher than what comparable studies found using data from other countries. Secondly, the effect of IRA on local government expenditures is even stronger for provinces with relatively greater ability to generate its own funds. Next, IRA and other externally sourced revenues have much stronger marginal effects on local government spending than do own-sourced revenues. Finally, IRA has widely varying effects on different components of local government expenditures.

Broad Insecurity and Perceived Victimization Risk

Appealing to fear of crime and perceived risk of victimization is a known political strategy for gaining popular support. While fear of crime and perceived risk may stem from vulnerability and past experiences of victimization, high levels of fear and perceived risk, despite declining crime rates, had prompted researchers to investigate other sources of fear of crime and perceived victimization risk. We used survey data from 1,200 households in Metro Manila to test the hypothesis that perceived risk of victimization may be predicted by broad insecurity, which encompasses insecurities in finances, employment, education, health, disaster preparedness and rights protection. Multivariate regression is used to measure variable effects. Our results showed that broad insecurity significantly influences perceived risk of victimization. Other reliable predictors included past victimization, local government spending and social identifiers such as age and gender, but none was as strong as broad insecurity. These findings suggest that perceptions of public safety depend not only on tough policing, but also economic opportunities, human capital development and overall wellbeing. This article corroborates budding research on the diffuse sources of fear of crime and victimization. It informs political and economic prioritization in pursuit of social harmony and development amidst a rapidly changing socioeconomic and political landscape. JEL: Z13, Z18

The Impact of El Nino on Inflation in Regional Indonesia: Spatial Panel Approach

The study about the relationship between climate and economy is essential because it’s understanding is the key to formulate the effective economic policy. El Nino is one of the climate phenomena's that directly impact Indonesia, so it is necessary to analyze its effect on the macroeconomic condition such as inflation. This study aims to analyze the impact of El Nino as an external factor and the impact of another relevant economic factor on the macroeconomic condition such as inflation at the regional level (province) in Indonesia. The method used is a spatial panel method to capture the effect of inter-regional spatial interactions. The results show that El Nino has a positive effect on inflation in the southern Indonesian provinces that are affected by El Nino, but no effect in northern Indonesia. The other significant determinants of regional inflation are minimum wage, local revenue, local government spending, and infrastructure. There is significant spatial dependence on regional inflation in Indonesia, indicating that the inflations of its neighboring provinces influence the inflation of a province.

Flood Fatalities in the United States: The Roles of Socioeconomic Factors and the National Flood Insurance Program

Flooding is the most frequent disaster type among all severe weather events in the United States. Over the 20‐year period from 1996 to 2015, a total of 107,743 floods resulted in 1563 fatalities and over $167 billion in damages. Climate models suggest that the risk of major flooding will increase in the coming years. In this article, we provide new analysis of the life‐saving role of the National Flood Insurance Program (NFIP) using county‐level data for the United States over the years 1996–2015. The integrated view of the physical, social, economic, and political elements of disaster vulnerability guides the empirical analysis. Our analysis indicates that people most affected by floods are those who have weaker economic and social bases; lower education levels and poor housing quality increase flood vulnerability. We also find that local government spending on public safety and welfare significantly reduces overall flood vulnerability. Importantly, our estimates present new evidence that ex ante floodplain management and mitigation efforts required for participation in the NFIP have played a vital role in reducing flood‐related fatalities.

Industrial energy efficiency and driving forces behind efficiency improvement: Evidence from the Pearl River Delta urban agglomeration in China

Improving energy efficiency of industrial sectors is essential to achieve energy conservation in the Pearl River Delta urban agglomeration (PRDUA) in China. This study adopted stochastic frontier analysis (SFA) to evaluate the industrial total factor energy efficiency (TFEE) of nine cities in PRDUA during 2004–2016, and then to decompose the growth of TFEE into technical change (TC), technical efficiency change (TEC), and economies of scale (SC) effects. Results show that the TFEE of industrial sectors of PRDUA had an overall downward trend during the study period, and that technical change was the major driving force behind the growth of TFEE. The Tobit model was then adopted to further investigate the determinants of energy efficiency improvement and test the robustness of empirical results. The main contributions of this study to the existing literature lie in showing that (1) the degree of openness, local government spending, foreign direct investment, factor input structure, environmental regulation strength, and GDP per capita have positive impacts on the industrial TFEE; (2) enterprise scale and energy consumption structure have a negative impact on industrial energy efficiency. Finally, we address policy implications for energy management regarding their economic and environmental aspects in industrial sectors of the PRDUA.

Legislature Size, Local Government Expenditure and Taxation, and Public Service Access in Indonesia

This study examines the impact of legislature size on local public finance and service outcomes in Indonesia. The investigation employs both continuity- and randomization-based regression discontinuity methods to accommodate the endogeneity of council size and to identify its causal effects on local government spending, service delivery, and own-source revenue mobilization. Many studies have examined the influence of increasing legislature size on expenditures, but no consensus has emerged on the direction of impacts. Moreover, interpretation of the efficiency of derived spending effects has remained elusive and reliant on ad hoc theorizing. This is the first study to examine the causal impact of council size on service outcomes, thereby facilitating an empirically based understanding of efficiency effects. The study finds that increasing legislature size negatively affects local government total and capital spending. The investigation also shows that rising legislature size has a negative influence on citizen access to public services. Finally, the examination offers evidence to suggest that an increasing number of legislators have no impact on local own-source revenues. Taken together the results imply a decline in local efficiency: residents pay the same amount in taxes but receive fewer services. The findings in this investigation contradict recent theoretical predictions and empirical results from other research.