Public Finance Policy Research Articles

Focused Jurisdictional Scan of Glomerulonephritis Medication Access in Canada: A Program Report.

Glomerulonephritis (GN) is a group of rare kidney diseases that is increasingly being managed with higher cost immunosuppressive (IS) agents in Canada. Ontario Health's Ontario Renal Network (ORN) oversees the management and delivery of GN services in the province. Stakeholder surveys previously conducted by ORN identified that both clinicians and patients do not perceive access to GN medications as comprehensive or timely. The program conducted a focused jurisdictional scan among 7 provinces to inform ORN initiatives to improve access to GN medications. Specifically, the program examined clinician experience with GN access, public drug coverage criteria, and timelines for public coverage for select IS agents (ie, tacrolimus, cyclosporine, mycophenolate mofetil [MMF], mycophenolate sodium, rituximab, and eculizumab) used to manage GN in adults who live in Canada. For the selected IS agents, a focused jurisdictional scan on medication access was conducted by ORN in 2018 and updated in July 2022. Information was obtained by searching the gray literature and/or credible online sources for public funding policies and eligibility criteria. Findings were supplemented by personal communications with provincial drug programs and consulting GN clinical experts from 7 provinces (ie, Alberta, British Columbia, Saskatchewan, Manitoba, Ontario, Nova Scotia, and Quebec). Clinicians from different provinces prescribe IS agents similarly for GN indications, despite distinctions in public drug funding policies. While patients can obtain public funding for many IS agents, for GN, most provinces rely on case-by-case review processes. In addition, provinces can vary in their funding criteria and which IS agents are listed on the public formulary. For IS agents that require prior authorization or case-by-case review, timelines vary by province with decisions taking a few days to weeks. British Columbia, with a GN-specific drug formulary, had the most integrated and efficient system for patients and prescribers. This scan primarily relied on publicly available information for drug coverage criteria and clinician experience with access in their province. Since this scan was conducted, public drug coverage criteria and/or application processes may have changed. While patients in most provinces have similar needs and nephrologists similar prescribing patterns, gaps still exist for publicly funded GN medications. Interprovincial differences in the drugs funded, funding criteria, and application process may affect timely and equitable access to GN medications across Canada. Given the rarity of GN, a pan-Canadian funding approach may be warranted to improve the current state.

Роль государственных финансовых инструментов в решении ключевых проблем российских регионов на примере Дальнего Востока

The relevance of this research is defined by the importance of the Far Eastern Federal District in the context of reorientation of Russia’s logistics and infrastructure from West to East. The aim of the paper is to test the hypothesis about the positive impact of the used measures of state financial regulation on the development of the Far Eastern Federal District in order to solve its key problems. The authors faced the task to analyze and develop essential measures of state financial regulation at the regional level. The scientific novelty of the study lies in the development of those measures taking into account the changing importance of the region in Russia’s trade turnover. The practical relevance consists in the possibility of using the results in the development of public financial policy in the region. In addition, the article considers key problems of the region, the solution of which will have a positive impact on the country’s economic growth and can be achieved through the government financial measures suggested by the authors. Such measures include increasing the capacity of the Far East sea ports, which means the simultaneous development of the Russian logistical infrastructure, primarily railway infrastructure, to organize uninterrupted delivery of goods to the ports of the region; changing the structure of the trade turnover with a shift towards the export of high-tech products; solving the demographic problems and increasing the scientific and technological potential of the Russian Far East. The results of this study can be used to analyze other Russian regions in order to increase the economic potential of the country as a whole.

ЗАРУБЕЖНЫЕ ПРАКТИКИ РЕАЛИЗАЦИИ ГОСУДАРСТВЕННОЙ ФИНАНСОВОЙ ПОЛИТИКИ В ПОСТКОВИДНЫХ НАЦИОНАЛЬНЫХ ЭКОНОМИКАХ

The article examines the formation of public financial policy in post-crisis national economies in foreign countries: special attention is paid to the implementation of public financial policy in countries such as Belgium, Australia, Canada, and also describes the experience of Norway, Germany, Japan, New Zealand). The author of the study gives the opinion that it is budgetary policy as part of financial policy that plays a priority role and is the main tool in solving problems and tasks in the post-crisis period, and also puts forward the basic priorities of responsible budgetary policy in the social sphere in conditions of macroeconomic instability, including within the framework of the Great Isolation. The article concludes that the best foreign practices in post-crisis economies are associated with the reorientation of public spending to support national economies and the creation of favorable conditions for improving the welfare of citizens, the growth of enterprises, entrepreneurship. Foreign practices are represented by a set of measures of the governments of these countries (socio-economic programs, subsidies, investments, etc.).

Impact of public financial policy on implementing the principle of stability

The paper addresses the issues of implementing the principle of stability, when the state, changing the rates of taxes, fees and other mandatory payments, should not only focus on replenishing resources to fulfil its obligations to society, but also stimulate economic activity. Discretion has been researched into regarding the implementation of public financial policy in the context of applying the principle of stability, which could be carried out taking into account the target interpretation of the system of legal regulators, when the law enforcement body chooses the regulator whose application will lead to a more reasonable and fair result. It is about the subsidiary application of independent regulators.
 The author focuses on the fact that from the standpoint of the principle of the rule of law and in view of the formation of supranational law, including financial, consideration of principles and morality is the primary step before applying the provisions of the law. It is not legitimate to form the practice of law enforcement against the fundamental principles of law. The following levels of principles have been defined: 1) supranational; 2) national. Issues have been addressed in the paper that it is strategically correct, if the rule of law does not correspond to the principle, then it is necessary to recognize it as illegal and apply the principles, simultaneously changing the rules of the law. It has been proposed that when adopting legislation on normative acts, it is necessary to shift the hierarchy to the principle from the norm-law. The author focuses on the fact that, in order to achieve national and public interests, the Verkhovna Rada of Ukraine has the right to change the provisions of the law, to adopt new laws that change the legal regulation, contradicting the previous legal norms. Thus, the provisions of previous laws are automatically terminated.
 The procedural discretion has been identified as related to a fairly wide scope of the court’s powers in carrying out procedural activities for the purpose of resolving the pending dispute. Both general principles of law and relevant procedural principles, as well as principles of the specialized field of material law, are taken into account. One of the key issues remains the promotion of trust in public authorities, in particular, on the part of the participants in the judicial process. The limiting factors of discretion have been addressed in the paper as legal regulations and factual circumstances of the case. Establishing the factual circumstances of the case is carried out in combination with the evaluation and interpretation of legal facts or structures, justification of the legal position.

Spatial Efficiency and Socioeconomic Efficiency in Urban Land Policy and Value Capturing: Two Sides of the Same Coin?

Land policies are commonly used to contribute to the implementation of the public policy of land-use planning (or spatial planning). In this sense, a spatially efficient land policy must allow the planning systems to achieve the land uses promoted by strategic planning. In addition to their role in land-use planning, land policies also contribute to public finance policies. From this perspective, a socioeconomically efficient land policy must allow public authorities to capture land value. The research presented in this article aimed to contribute to planning theory by initiating a reflection on the interactions between spatial and socioeconomic efficiency in land policy. In our view, to consider those two dimensions in a more integrated way can help in the development of the growing research field on land value capture. Our research is based on the general assumption that there are processes of mutual strengthening and blockages between spatial efficiency and socioeconomic efficiency in land policy. In order to test this assumption, an international comparison methodology was developed. In order to develop a robust methodological approach, our exploratory comparative approach is based on a theoretical framework that depicts an ideal planning system. This ideal planning system serves as a benchmark for two empirical case studies on Norway and Belgium. Through our research, we find evidence of the interdependency of spatial efficiency and socioeconomic efficiency. The results of the two case studies therefore indicate that our initial assumption is generally confirmed. However further investigations are needed to deepen our exploratory discussion of the topic.

Artificial Intelligence and Exploratory-Data-Analysis-Based Initial Public Offering Gain Prediction for Public Investors

An initial public offering (IPO) refers to a process by which private corporations offer their shares in a public stock market for investment by public investors. This listing of private corporations in the stock market leads to the easy generation and exchange of capital between private corporations and public investors. Investing in a company’s shares is accompanied by careful consideration and study of the company’s public image, financial policies, and position in the financial market. The stock market is highly volatile and susceptible to changes in the political and socioeconomic environment. Therefore, the prediction of a company’s IPO performance in the stock market is an important study area for researchers. However, there are several challenges in this path, such as the fragile nature of the stock market, the irregularity of data, and the influence of external factors on the IPO performance. Researchers over the years have proposed various artificial intelligence (AI)-based solutions for predicting IPO performance. However, they have some lacunae in terms of the inadequate data size, data irregularity, and lower prediction accuracy. Motivated by the aforementioned issues, we proposed an analytical model for predicting IPO gains or losses by incorporating regression-based AI models. We also performed a detailed exploratory data analysis (EDA) on a standard IPO dataset to identify useful inferences and trends. The XGBoost Regressor showed the maximum prediction accuracy for the current IPO gains, i.e., 91.95%.

Effects of public financial management policies in Government accounting system: A case Study of National Ministry of Finance and Planning in Juba South Sudan

Effects of public financial management policies in Government accounting system: A case Study of National Ministry of Finance and Planning in Juba South Sudan

How does IPM 3.0 look like (and why do we need it in Africa)?

The concept of Integrated Pest Management (IPM) was introduced sixty years ago to curb the overuse of agricultural pesticides, whereby its simplest version (IPM 1.0) was aiming at reducing the frequency of applications. Gradually, agro-ecological principles, such as biological control and habitat management, were included in IPM 2.0. However, throughout this time, smallholder farmers did not improve their decision-making skills and continue to use hazardous pesticides as their first control option. We are therefore proposing a new paradigm - IPM 3.0 - anchored on 3 pillars: 1) real-time farmer access to decision-making, 2) pest-management options relying on science-driven and nature-based approaches, and3) the integration of genomic approaches, biopesticides, and habitat-management practices. We are convinced thatthis new paradigm based on technological advances, involvement of youth, gender-responsiveness, and climate resilience will be a game changer. However, this can only become effective through redeployment of public funding and stronger policy support.

Stimulating financing innovative activity

Purpose: The aim of the study is to analyze investment activities in Ukraine to determine effective mechanisms and incentives for financing innovative activities.
 Design / Method / Research approach. In the national economy of Ukraine, effective models of financing innovative activities, favorable for enterprises that introduce innovations, have not been created. Carrying out innovative activity, which is highly risky and does not always enable to plan profit amount, requires the use of financing flexible forms. Currently, there is no solution to individual issues of strengthening the positive impact of state financial policy on the innovation development in industry, funding sources optimization for innovation. In this regard, it is necessary to clarify the scientific provisions on the substantiation of mechanisms for stimulating the innovative activities financing as an important element of the national economy development state regulation.
 Research results. The trends of innovative activity in terms of its financing sources have been analyzed. The problems of organizing the industrial enterprise financing have been highlighted. Prospective ways of solving the problem of financing innovative activities volume increasing and structure improving have been presented. It is necessary to transform the depreciation, budgetary and taxation, credit, technical and technological, foreign trade policy.
 Theoretical value of research. It is proposed to modernize the methodological foundations for the targeted comprehensive programs development, implemented in the innovation sphere, which should consider the possibilities of using the appropriate instruments inherent in different areas of public financial policy, primarily budgetary and taxation.
 Practical value of research. In order to stimulate innovative activities financing, it is necessary to introduce public-private partnership instruments. Various instruments can be used to solve the problem: direct government funding, government guarantees provision, joint (with a private partner) entrepreneurship (with or without a creation) on the basis of an open transparent tender. Further stimulation of conscientious venture business is advisable.
 Originality / Value of research. The research is an original result of scientific work carried out by the author's team.
 Research Limitations / Future Research. It is advisable to stimulate a conscientious venture business, which inherently tends to the implementation of innovative activities. The tools for the administration of intellectual property recognized by the world practice should be introduced.
 Type of article: theoretical.

BUDGET FUND FOR THE FINANCING OF DEFENCE EDUCATION AND DEFENCE SCIENTIFIC RESEARCH ACTIVITIES

Most countries allocate significant funds to finance defence spending. The amount of these funds is determined by the defence policy, living standard and economic strength of the country. However, the available funds to finance defence expenditures are not sufficient to cover the requirements for military education and scientific research within the defence system. The establishment of budget funds for these purposes provides new opportunities for harmonization of opportunities and needs in this area, where innovative mechanisms for allocating budget funds increase the effectiveness of public finance policies of countries for education in the security and defence sector.

The Effect of Fiscal Policy on the Economic Growth: An Analytical Study, Evidence from Jordan (2005-2020)

The Jordanian economy faces a set of economic challenges, represented by the rise in unemployment rates, the decline in the rates of gross domestic product, and the rise in the general level of prices, which are the most important indicators of economic development. Jordan is considered one of the developing countries with limited resources, and it depends greatly on tax revenues, grants, and foreign subsidies to cover public expenditures. Because of the importance of fiscal policy to correct the economic path, and Jordan's need for an effective fiscal policy to achieve acceptable economic growth and find successful solutions to address poverty, unemployment, declining investment, adjusting public spending levels, and setting tax rates, this study aimed to examine the impact of fiscal policy tools (Tax Revenue, Domestic Revenue, External Debt, Foreign Grants and Total expenditure), on indicators of economic growth in Jordan (GDP, Inflation, and Unemployment), during the period 2005-2020. The study followed the analytical and descriptive approach using statistical programs through a multiple regression model based on historical quarterly data obtained from the statistical database of the Central Bank of Jordan and the Jordanian Department of Statistics during the study period. The most important findings of the analytical results of the study's hypotheses are a statistically significant effect of fiscal policy tools on GDP, inflation, and unemployment with explanatory power (94%, 97%, and 86.6%). Consecutively. This study contributed to finding a model capable of explaining the impact of public financial policy tools on the most important indicators of development in Jordan, by taking into account most of the financial policy tools, so it is expected that the results of this study will contribute to improving the quality of fiscal policy decisions in Jordan.

Disrupsi Pandemi dan Strategi Pemulihan Industri Kreatif

This study offers a theoretical follow-up discussion on the implementation of public finance strategies and policies used to help the creative industry from the disruption of the COVID-19 pandemic. This article also presents various policies that have been taken by the government with a fiscal approach. The policies used by the government have also been replicated by countries in the Southeast Asian region that are members of ASEAN. This research focuses on the integration of research on the pattern of the creative industry economy with the contemporary paradigmatic discourse of the creative industry. This study proves that the fiscal policy strategy used by the government is able to reduce the slump in the national economy. This study found that there was uniformity in the pattern of economic recovery policies in the Southeast Asia region to respond to COVID-19. This uniform pattern is related to stimulus policies in 6 (six) important sectors, one of which is the creative industry. This research also finds that the pattern used in the policy is to focus on incentives for creative industry players, creative industry roadmap, creative economy training, legal protection of creative economy products, and investors for development.

Becoming an intellectual monopoly by relying on the national innovation system: the State Grid Corporation of China's experience

This paper examines the origins of global leaders under intellectual monopoly capitalism. State Grid Corporation of China (SGCC), the leading firm in artificial intelligence applications for the energy sector, became an intellectual monopoly relying heavily on China's national innovation system –particularly public research organizations and public funding, and innovation and energy policies. SGCC is unique because it did not rely on technology transfer from global leaders, unlike other national champions from developing or emerging countries. We provide evidence that contributes to thinking that SGCC first became a national intellectual monopoly and only afterwards expanded that monopoly globally. We empirically study SGCC's innovation networks. We proxy them using big data techniques to analyze the content, co-authors and co-owners of its publications and patents. Results also suggest that SGCC is capturing intellectual rents from its increasingly transnational and technologically diverse innovation networks by leveraging its national innovation system.

FINANCIAL POLICY OF UKRAINE IN THE GLOBALIZATION OF THE ECONOMY

In the article financial politics of Ukraine is described in the conditions of globalization of economy. Essence of concept "financial politics" is analysed. It was marked, such conceptual principles there is base on approach of the systems to the institutional providing of public financial policy. It is indicated that it is possible to attribute to the results of financial politics. It is marked that realization of financial politics of the state comes true as a complex of measures, that are incarnated through a financial right, financial system and financial mechanism with the aim of the most complete implementation by finances of the functions. A public financial policy is considered, as an important constituent of economic politics of the state and her basic kinds. It is marked the main problems of financial politics. Currently, it is important that the financial policy of Ukraine in the conditions of the globalization of the economy is developed on the basis of the requirements of the financial strategy and taking into account the existing economic conditions.

THE CONCEPT OF COMPUTABLE GENERAL EQUILIBRIUM MODELS

This paper contributes to the existing literature on the general concept on use of the Computable general equilibrium (CGE) models of importance in developing processes. Computable general equilibrium (CGE) models are used widely in policy analysis, especially in developed-country academic settings and also for the purpose of sharing these lessons with potential users in developing countries. The range of issues on which CGE models have had an influence is quite wide, and includes structural adjustment policies, international trade, public finance, agriculture, income distribution, and energy and environmental policy. This paper describes how to build multi sector computable general equilibrium models for policy analysis. The article presents the social accounting matrix (SAM) that provides the conceptual framework linking together different components of the model and furnishes much of the data as well.

THEORETICAL PRINCIPLES OF ENSURING THE TRANSPARENCY OF FINANCIAL RELATIONS AT DIFFERENT LEVELS OF THE ECONOMIC STRUCTURE

One of the key ways to increase the effectiveness of public financial policy is to ensure the necessary degree of publicity and transparency of financial relations at all levels of the economic system. Transparency is an effective tool for preventing negative manifestations and abuses in the financial sphere in both public and corporate and personal finances. The aim of the work is to study the essence and content of the concept of transparency of financial relations at different levels of the economic system and its role in ensuring the financial security of the state. The article analyzes the latest research and publications on the transparency of financial relations and found that modern scholars are focusing their efforts on researching various aspects of this process and the features of ensuring its maximum effectiveness. The definitions of the concept of "transparency", which are present in modern scientific thought both in the general definition and with a focus on the level of public, corporate and personal finance, are considered. It was found that the vast majority of publications focus on the transparency of financial relations at the public and corporate levels, virtually ignoring the level of personal finance, where the need for publicity and transparency is also important. The bibliometric analysis of publications on this topic in the Scopus database showed the presence of close relationships with other economic and financial categories and concepts, which once again confirmed the relevance of these studies. The normative and legal framework formed in Ukraine during the period of independence, which regulates the transparency of financial relations at different levels of the economic system, has been comprehensively studied. It was found that the key legislative acts in this process are the Law of Ukraine "On Openness of Public Funds", the Law of Ukraine "On Accounting and Financial Reporting in Ukraine", the Law of Ukraine "On Prevention of Corruption" and a number of other legal documents. At the same time, despite the constant development of opportunities to ensure the transparency of financial relations in Ukraine, the level of shadowing of the economy and corruption remain quite high, which makes further research in this direction promising.

Analysis of the Impact of Expenditures on Education and R&D on GDP in Central European Countries

The main purpose of this paper is to identify the impact of public spending on education and research and development (R&D) on the formation of gross domestic product (GDP) in nine Central European countries, which are divided into two clusters – "old" and "new" EU members. The study took into account official Eurostat data of both the EU and national statistical organizations for the period 2010–2019. The analysis of this impact was carried out using a system approach, statistics and econometric framework including panel data regression, Wald, Breusch-Pagan, Hausman tests. The main finding of the present study is the identification of additional income in terms of GDP in Euro per capita for selected countries, which is obtained from adequately spent public funds for education and R&D. Our results showed that the strongest influence of these expenditures for the "old" members was in Germany and Austria, and for the "new" – in Slovenia and Czechia. It is proved that this impact is different in individual countries and is determined by the public financial policy of national governments.

Poverty reduction in rural China: Does the digital finance matter?

As digital finance is widely spread and applied in China, this new format of financial technology could become a new way to reduce poverty in rural areas. By matching digital financial indexes of the prefectural-level cities with microdata on rural households from the China Household Finance Survey (CHFS) in 2017, we find that digital finance significantly suppresses absolute poverty and relative poverty among rural households in China, which is supported by a series of robustness tests, such as the instrumental variable approach, using alternative specifications, and excluding extreme observations. Additionally, we provide evidence that the poverty reduction effect of digital finance is likely to be explained by alleviating credit constraints and information constraints, broadening social networks, and promoting entrepreneurship. Our findings further complement the research field on financial poverty reduction and offer insights for the development of public financial policies of poverty reduction in other countries, especially in some developing countries.

Does Financial Integration Increase Bank Efficiency? New Evidence From the Euro area: European Financial Integration

This paper aims to estimate the relationship between bank's cost and profit efficiency and financial integration, which we defined as five groups of competition, bank market ownership, financial liberalization, free capital flow, and the euro area control variables. A two-step quantitative research design was employed to accomplish purpose of the current paper for an unbalanced pooled time series dataset of 126 banks of the euro area banking system between 1999 and 2012 : Data Envelopment Analysis (DEA) and panel regression analysis (GMM regression model). The results suggest that concentration ratio, foreign ownership, domestic credit, and market integration are negatively related to bank's cost and profit efficiency while the coefficient of real credit growth and capital flow have a positive relationship to cost and profit efficiency score. Furthermore, empirical findings of bank market power, government budget deficit targeting, and public debt targeting are consistent in both cost and profit efficiency models. Therefore, the government budget deficit has a positive impact on cost efficiency without assurance of sound public finance policy which is important to ensure sustainable economic development within the euro area. criteria relating to government deficit needs to adjustment for the euro area adopted Member States because, by increasing the difference of actual from targeted value of government budget deficit; bank cost efficiency will be increased.

Analyse expérimentale du comportement des producteurs de céréales sèches face au risque financier dans un contexte de changement climatique

Cette étude a un double objectif : caractériser les exploitants agricoles suivant leur niveau d’aversion au risque financier et analyser les facteurs explicatifs de leur propension à prendre un risque financier. En utilisant un système de loteries inspiré des travaux d’Allais (1953) sur 540 exploitants agricoles choisis dans le Bassin arachidier du Sénégal, les résultats montrent que 81,38 % des producteurs présentent une aversion au risque financier et seulement 8,57 % sont « risquophiles ». Les estimations avec le modèle probit binomial montrent également que la propension à prendre un risque financier diminue si l’exploitant agricole se fixe un niveau élevé de perte de production tolérable. Ces résultats suggèrent de prendre en compte les composantes de la demande dans les politiques publiques de financement et d’assurance agricole.