Changes In Revenues Research Articles

Assessing the Future of Oil and Gas Production and Local Government Revenue in Five Western US Basins

Oil and gas production is a major source of public revenue in many US regions, but uncertainty exists over the future of demand for hydrocarbons. We model how oil and gas production and related government revenue change in five western US basins depending on future oil and natural gas prices under three scenarios of climate policy ambition. We find that the Green River and San Juan basins experience production declines across all scenarios, while production in the Bakken, Permian, and Powder River basins are more dependent on prices. Government revenue generally follows the direction of production, but these relationships are not directly proportional. Under the lower price scenarios, revenue declines more steeply than production because it reflects both production and prices, which both decline. Long-term permanent funds, which are in place across all the states we examine, provide an important fiscal cushion for school districts, their primary beneficiary. JEL Classification: H71, H72, H73, O13, Q41, Q48

Maximize Profitability by Choosing the Right Corn Hybrid

The most expensive seed is not always the best when trying to achieve profitability over yield. Dr. Matt Stockton uses data from the University of Nebraska-Lincoln’s TAPS farm management competition to illustrate why buying the wrong corn seed may be more costly than you think. Prior to working with the UNL TAPS farm management program (Testing Ag Performance Solutions), I had not fully understood the economic impact that the seed selection decision potentially has on farm profitability. Sure, I knew that paying too much for seed relative to its return results in a reduction of profit, and yes, I recognized that a certain degree of productivity is required to cover expenses and have a healthy cash flow, but it was a surprise to me to find out just how large the decision using the right seed at the right price is and that it can significantly alter profitability. When TAPS competitions started, I assumed that most competitors’ seed choices would not play as a major role in determining the economic winner as they have and that seed selections would likely result in somewhat similar yield outcomes. After examining and analyzing the 2018 TAPS results, it became evident to me that I have underestimated the impact and value of this choice. A solid-performing hybrid at the right price makes a considerable difference in both costs and returns. In the next few pages, an economic analysis of the 2018 TAPS seed decisions is presented. This comparison is made using the profit relationship, measured by the change in revenue due to the yield difference in hybrids, minus the change in costs due to planting a different hybrid.

Comprehensive Analysis of 100 MW Wind Farm Losses and Their Financial Impacts: A Study on Array Losses Across Multiple Turbines Using a RETScreen Expert Software

Abstract This study aimed to analyze and evaluate the influence of array losses on the financial sustainability and economic viability of wind farm projects with a capacity of 100 MW. The Al-Fajer site has been proposed for a feasibility study to assess the viability of building an onshore wind farm. The assessment of investment costs was conducted using the RETScreen program. The findings demonstrated that alterations in array losses impact the amount of energy exported to the grid, influencing changes in revenue, pre-tax internal rate of return (IRR), and net present value (NPV). When array losses in (case 1) decrease by 2%, that will positively impact financial feasibility factors. Therefore, it will lead to a gain in income for all turbines; the net present value (NPV) and pre-tax internal rate of return (IRR) values experienced an increase, indicating a positive impact on the project’s profitability. When array losses in (case 2) increase by 2%, it will lead to negative results on the wind farm and, thus, reduce the energy exported to the grid; wind turbine revenue will experience a decline. This increase substantially affects the NPV and IRR, leading to decreases. The capacity factor experienced a drop, resulting in significant changes to the project’s financial returns. The levelized cost of energy (LCOE) has increased due to decreased production, leading to higher prices. The simple payback likewise experienced a boost beyond its usual norms.

The Effects of the Regional Comprehensive Economic Partnership on China’s Trade, Tariff Revenue and Welfare

Increasing attention is being paid to the role of regional economic integration in facilitating a country's trade. This is especially true for the state like China, which has the second largest GDP in the world. This study explores the effects of the Regional Comprehensive Economic Partnership (RCEP) on China, looking at changes in welfare, trade creation, trade diversion, and tariff revenue under four tariff reduction scenarios with RCEP members. The study evaluates how RCEP affects China's trade relations with Japan, Korea, ASEAN, Australia, and New Zealand by using the World Bank's World Integrated Trade Solution Software for Market Analysis and Restrictions on Trade (WITS-SMART) tool. The findings demonstrate increased market accessibility and competitiveness of commodities in the Chinese market, with notable increases in trade creation and diversion, especially with Korea and Japan. RCEP considerably increases welfare even though it results in lower tariff revenues, indicating that the advantages of lower trade costs and more effective supply chains exceed the fiscal drawbacks. The paper concludes with policy recommendations that emphasize the need for strategic adaptations in China’s trade policies to fully capitalize on the economic opportunities presented by RCEP, ensuring sustainable growth and the equitable distribution of trade benefits among all member states.

The Impact of Crude Oil Price Fluctuation on Revenue Generation in the Oil Dependent Economy: Nigeria

This study explores the dynamic relationship between crude oil price volatility and revenue generation in Nigeria over a 41-year period from 1981 to 2021. It encompasses an analysis of key variables, including total revenue (REV), oil price (OPV), oil revenue (ORV), non-oil revenue (NRV), and exchange rate (EXCHR). The study employs the Auto Regressive Distributed Lags (ARDL) model to examine the long-term and short-term impacts of oil price volatility on revenue generation. This study reveals that crude oil price volatility (OPV) failed to exert strong impact on total revenue (REV) in Nigeria in the distance period. Oil revenue (ORV) exhibits a strong and positive influence on total revenue, highlighting its pivotal role in revenue generation. Non-oil revenue (NRV) also significantly contributes to total revenue, emphasizing the importance of diversifying revenue sources. Exchange rate (EXCHR) fluctuations do not significantly predict changes in total revenue. Based on the findings, policy recommendations include diversifying revenue sources, enhancing non-oil revenue collection, effective oil revenue management, promoting economic diversification, strengthening tax infrastructure, and adopting prudent budgeting practices.

Analisis Omzet Penjualan Era Pandemi dan Pasca Pandemi Covid-19: Studi Kasus pada D’orbit Bistro, Lounge & KTV

This research aims to analyze the impact of the Covid-19 pandemic on the sales revenue of D'Orbit Bistro, Lounge & KTV and the strategies implemented for recovery during the period 2019-2022. During the pandemic, there was a drastic decrease in revenue by up to -64%, due to social restrictions and a decline in visitor interest. The outlet responded with CHSE strategies, discounts, and customer-centric approaches. Post-pandemic, there was an increase in revenue by 61%, with the implementation of entertainment, recruitment of new employees, and promotions on social media. The analysis of revenue changes provides a percentage overview of the decline and increase from the lowest point to the recovery of the outlet during the research period. This study offers insights into business adaptation and strategies amid significant environmental changes.

Changes in revenues associated with antimicrobial reimbursement reforms in Germany

Policy declarations from the G7 and other high-level meetings call for increased incentives for antimicrobial research and development (R&D). Governments fund push incentives like CARB-X and GARDP, and G7 countries are now designing pull incentives—financial rewards given to manufacturers post-market authorization that are intended to encourage the creation and introduction of novel antimicrobials. Germany has declared previously at the G7 that it has developed a pull incentive that will increase revenues from sales of important new antimicrobials, principally by exempting them from some aspects of health technology benefit assessments and reference pricing, which should result in higher prices. This policy move is the latest in a series of reforms that aim to improve the marketability of antimicrobials in Germany. This paper examines Germany’s reforms and contributes to the ongoing debate about the merits of its approach in light of R&D and access issues impacting the country, particularly in comparison to pull incentives such as revenue guarantees or subscriptions that delink revenue from sales volume. We find that in order for Germany to produce the same impact on antimicrobial revenues as a delinked pull incentive, it either needs to increase the volume of antimicrobials used or increase prices for these drugs by as much as 3.3-times current values.

South African inflation response to fiscal policy shocks

ABSTRACT The research employs Bayesian Vector Autoregressions with hierarchical priors to analyze the intricate economic implications of fiscal policy shocks on inflation, monetary policy, and fiscal authorities in the context of South Africa. The study explores data spanning from 1979 to 2022. Contrary to conventional economic theories, our analysis demonstrates that unexpected increases in national government expenditure led to counterintuitive initial decreases in inflation. This highlights the complexity of inflation dynamics and challenges existing paradigms. Moreover, the lagged response of inflation to changes in government revenue emphasizes the role of inflation expectations and market dynamics. Clear communication by fiscal authorities is crucial for shaping these expectations and understanding their impact on inflation.

Unraveling Urban Retail Realities: Assessing Revenue Shifts and Policy Effects in Seoul, South Korea, Pre- and During the COVID-19 Pandemic

The post-2020 revenue trends in Seoul’s retail areas, influenced by government policies to curb the epidemic, exhibit diverse impacts across regions. Progressing through three stages—imposing gathering restrictions, easing business limits with reinforced movement constraints, and relaxing epidemic control—the measures, while uniformly applied, yield varied effects based on retail area characteristics. Using Dynamic Time Warping Clustering, this study assessed 1637 Seoul retail areas over 45 months, categorizing revenue changes into highly grown, grown, recovered, and stagnated types. Areas with increased pre-pandemic revenue displayed lower F&B sector proportions, higher sales/experiential sector proportions, and increased spending by 30s/corporate entities. These areas were characterized by lower-income residents and reduced accessibility to public facilities. Conversely, areas with high 20s consumption, lower corporate demand, and proximity to crowd-pulling facilities exhibited lower revenue recovery resilience. The study emphasizes the need for effective urban spatial management to facilitate the recovery of elastic retail area amid mobility and interaction constraints, advocating for fine-tuned measures to minimize pandemic-induced economic impacts on urban retail areas.

A Study on the Impact of Cross-Border M&A on Firm Performance -- A Case Study of Tencent's Acquisition of Sumo Group

With the advocacy of the strategy of "bringing in and going out" in recent years, cross-border mergers and acquisitions in the game industry have become a major way for the development of the game industry. Chinese Internet company-Tencent is one of the largest leaders in the whole China's game industry. In recent years, Tencent has made many attempts to acquire overseas game companies to help them with the market competition. Among them the most important one must be Tencent's acquisition of the UK's sumo group in 2017.This paper uses the case study method to study the performance development and overall revenue changes of Chinese Internet company Tencent after its acquisition of UK-based sumo group game studio in 2021. This paper analyzes the motivation of Tencent's acquisition of sumo group, performance impact analysis, development prospects and other aspects, and finally draws a conclusion. At the same time, it puts forward suggestions for Tencent's future development strategy.

Does Online Fundraising Increase Charitable Giving? A Nationwide Field Experiment on Facebook

Does online fundraising increase charitable giving? Using the Facebook advertising tool, we implemented a natural field experiment across Germany, randomly assigning almost 8,000 postal codes to Save the Children fundraising videos or to a pure control. We studied changes in the donation revenue and frequency for Save the Children and other charities by postal code. Our geo-randomized design circumvented many difficulties inherent in studies based on click-through data, especially substitution and measurement issues. We found that (i) video fundraising increased donation revenue and frequency to Save the Children during the campaign and in the subsequent five weeks, that (ii) the campaign was profitable for the fundraiser, and that (iii) the effects were similar independent of video content and impression assignment strategy. However, we also found some crowding out of donations to other similar charities or projects. Finally, we demonstrated that click data may be an inappropriate proxy for donations and recommend that managers use careful experimental designs that can plausibly evaluate the effects of advertising on relevant outcomes. This paper was accepted by Yan Chen, behavioral economics and decision analysis. Funding: M. Adena acknowledges financial support from the Deutsche Forschungsgemeinschaft [Grants 417014946 and CRC TRR 190 (Project 280092119)]. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2020.00596 .

TAX BUOYANCY IN MAJOR STATES IN INDIA

In the world of fiscal policy, tax elasticity and buoyancy are crucial factors shaping a country's financial health. Tax elasticity measures how much tax revenue changes when national income shifts, showing how flexible the tax system is naturally, without deliberate policy changes. This flexibility helps stabilize revenue, reducing the need for constant tweaking of tax policies. On the other hand, tax buoyancy reflects how tax revenue responds to economic shifts and intentional changes in tax policies. It acts like a gauge, indicating how effectively taxes adjust to economic ups and downs and how well policy decisions influence revenue. Low buoyancy suggests that there might be flaws in the tax system, prompting policymakers to rethink and improve tax strategies to better fit economic realities. For a country like India, where tax revenues are essential for financing public spending, understanding these metrics is critical. The buoyancy coefficient compares the growth of actual tax revenue to national income growth, providing insights into how successful fiscal policies are in boosting tax revenues. Meanwhile, the elasticity coefficient shows how responsive the tax system is to changes in national income, revealing its potential to generate more revenue as the economy grows. Analyzing these metrics gives policymakers a detailed view of fiscal sustainability and economic stability. It helps them make informed decisions when designing tax policies, ensuring that the government can maximize revenue while allowing the tax system to adapt smoothly to economic changes. A balanced approach that considers both elasticity and buoyancy is key for India's fiscal strategy, ensuring a well-coordinated financial performance that aligns with national economic goals. KEYWORDS :- Tax Buoyancy, Tax Elasticity, Fiscal Policy, Tax Revenue, NITI Aayog, RBI (Reserve Bank of India), VAT (Value Added Tax), GST (Goods and Services Tax).

A welfare analysis of Medicaid and recidivism.

We present conservative estimates for the marginal value of public funds (MVPF) associated with providing Medicaid to inmates exiting prison. The MVPF measures the ratio between a policy's social benefits and its governmental costs. Our MVPF estimates suggest that every additional $1 the government spends on providing inmates exiting prison with Medicaid coverage can result in social benefits ranging between $3.45 and $10.62. A large proportion of the benefits we consider stems from the reduced future criminal involvement among former inmates who receive Medicaid. Employing a difference-in-differences approach, we find that Medicaid expansions reduce the average number of times a released inmate is reimprisoned within 1year by approximately 11.5%. By combining this estimate with key values reported elsewhere (e.g., victimization costs, data on victimization and incarceration), we quantify specific benefits arising from the policy. These encompass diminished criminal harm due to lower reoffense rates, direct benefits to former inmates through Medicaid coverage, increased employment opportunities, and reduced loss of liberty resulting from fewer future reimprisonments. Net-costs consist of the cost of providing Medicaid net of changes in the governmental cost of imprisonment, changes in the tax revenue due to increased employment, and changes in spending on other public assistance programs. We interpret our estimates as conservative since we deliberately err on the side of under-estimating benefits and over-estimating costs when data on specific items are imprecise or incomplete. Our findings align closely with others in the sparse literature investigating the crime-related welfare impacts of Medicaid access, underscoring the substantial indirect benefits public health insurance programs can offer through crime reduction, in addition to their direct health-related advantages.

The impact of local taxes and fees on the financial sustainability of territorial communities in times of war

The paper analyses the impact of local taxes and fees on the financial sustainability of territorial communities. The concept of financial sustainability is considered in relation to financial management, investment planning and debt control. It is noted that in the context of finance, the concept of ‘financial sustainability’ is identified with stability, security and flexibility. The author also analyses the share of local taxes and fees in the tax and total revenues of local budgets of Ukraine for the period 2021-2023. In turn, this allowed us to highlight changes in the structure of local budget revenues, in particular, changes in tax revenues and their relative contribution to total revenues. The calculated coefficients were used to highlight the role of local taxes and fees in ensuring financial sustainability on the example of the budget of the Lviv territorial community. The values of key financial indicators that characterise the level of financial sustainability of the budget of the Lviv city territorial community for the period 2021-2023 are also investigated. Using tables, the author analysed the coefficients such as the coefficient of independence, budget coverage, tax independence, budget security, subsidy and withdrawal of funds to the state budget. Fluctuations in these indicators over three years and their impact on the financial sustainability of local budgets in times of war were studied, i.e., the current state of the system of local taxes and fees was demonstrated. An important aspect of the study was the impact of the military conflict on the local taxation system in Ukraine, as in the context of the war in the country, it was necessary to consider not only the threat to security and stability, but also the economic consequences that significantly affect the financial support of local communities. Particular attention was paid to the efficient allocation of financial resources and the creation of reserve funds to ensure financial stability in unforeseen circumstances. The importance of local taxes as a key mechanism for strengthening the financial base and stability of territorial communities is highlighted, as this aspect contributes to their development and improves the quality of life of residents.

Does the cost behavior remain sticky? a 20-year literature review of cost stickiness

Research aims: This study aims to describe the development of cost stickiness research over the past twenty years globally and presents a future research agenda.Design/Methodology/Approach: The method used in this study is a systematic literature review with a final research sample of 91 articles from 42 international journals indexed by Scopus Q1-Q4 and 20 articles from national journals indexed by SINTA 1-4. Research findings: This research found annual developments and fluctuations in cost stickiness research topics in international and national journals. Mapping of cost stickiness research exhibits that (1) the dominating antecedent variable is revenue change, (2) the popular consequence variable is accounting conservatism, (3) the most widely used theory is cost stickiness theory, (4) the majority of cost stickiness research used quantitative methods with secondary data, (5) the widely used population is public sector or profit-oriented companies, and (6) the proxy dominating cost stickiness research is SGA.Theoretical contribution/Originality: This research mapping is based on six critical aspects of cost stickiness and provides several suggestions for future research. It is expected that future research related to cost stickiness can use this research as a reference and inspiration. Research limitation/Implication: Several websites in national journals indexed by SINTA 1-4 could not be accessed due to errors, limiting the number of research samples in national journals. Hence, future research can expand the search for articles in SINTA 1-6 or through other pages/portals (such as Web of Science) to more comprehensively describe the development of cost stickiness research.

Value-added tax expansion reform and specialization in China: evidence from textual analysis

This paper investigates the impact of China’s value-added tax (VAT) expansion reform on specialization using data sourced from listed companies. Through an examination of changes in business scope and revenue, two significant findings emerge. First, certain companies extend their services beyond internal use, aiming to boost sales during the post-reform period. This expansion is evident in the changes observed in the business scope matrix. Second, certain service providers experience a significant revenue increase as they attract outsourced orders from manufacturers affected by the reform. The disaggregated analysis of the three sectors involved in the VAT expansion reform further substantiates these findings. Moreover, we rule out tax avoidance as a motive by evaluating actual changes in tax burden, as opposed to projected burdens. These findings have important policy implications for understanding the ramifications of VAT reform and the dynamics of specialization within the industry.

TAX REVENUE OF THE BUDGETS OF TERRITORIAL COMMUNITIES OF THE REGION

The article examines both theoretical and practical aspects of forming the budgets of regional territorial communities, highlighting that local budgets are primarily composed of tax revenues. Due to decentralisation processes in Ukraine, territorial communities have been consolidated, making the united territorial communities the primary units of local self-government. Consequently, the mechanisms for forming these budgets have evolved, with tax revenues becoming the main financial resource for local governments, enabling them to fund their functions. The article emphasises that the approaches to forming local budget revenues have changed significantly under martial law, with many financial laws being amended. The article analyses the changes to the legislation that affected the formation of local budgets' tax revenues in martial law conditions. It analyses legislative changes that have impacted the formation of local budget tax revenues during this period. A comparative analysis is provided, focusing on the formation of tax revenues for local budgets in the Odesa region before and after the imposition of martial law. This includes examining the main national and local taxes contributing to these budgets. The article specifically highlights the tax revenues of the territorial communities in the Odesa region, demonstrating how these revenues have fluctuated in recent years. As a result of the conducted analysis, it was established that since the beginning of the war, income from most tax revenues has decreased. The main factors of influence on the change in tax revenues of the budgets of territorial communities of the region under martial law conditions are substantiated. The paper reveals that most tax revenue streams have decreased since the onset of the war. It explores the key factors influencing these changes and the primary reasons for the region's decline in local budget revenues. The article underscores the necessity for new approaches to forming local budget tax revenues, emphasising the need to address taxation issues and effectively utilise budgetary and tax instruments.

Modeling Tax Revenue Determinants: The Case of Visegrad Group Countries

This article provides panel data estimations of the tax revenue determinants in VG (Visegrad Group) countries (the Czech Republic, Hungary, Poland, and Slovakia) for the period 1994–2023. The aim of this research was to determine how the macroeconomic determinants affect the tax revenues in the selected countries. Within the static models, the Hausman test showed that the FE (fixed effects) model is appropriate and reflects the significant effects of the gross domestic product, population, inflation, unemployment, import, government revenue, government expenditure, and EU enlargement on the tax revenue. The PMG (Pooled Mean Group) model is an adequate model among the dynamic models and manifests the significant effect of the lagged value of the tax revenue. In the short term, growth of the gross domestic product and population by 1% causes higher changes in the tax revenue of 0.14% and 2.93%. Likewise, growth of the inflation rate by 1% decreases the tax revenue by 0.037%, which is higher than in the long term. Further, the results show that EU enlargement is significant for tax revenue in the short term, as well as in the long term. In the long term, unemployment has a greater significant effect on tax revenue, where 1% growth decreases the tax revenue by 0.15%. In contrast, government revenue is significant for tax revenue only in the long term, where 1% growth increases the tax revenue by 0.77%.

Estimating and Rewarding the Value of Healthcare Interventions Beyond the Healthcare Sector: A Conceptual Framework.

Evaluating healthcare interventions for their impacts beyond health outcomes may result in recognition of changes in human capital, income level, tax revenue, and government spending, which could affect economic growth and population health. In this paper, we document instances where current health technology assessment (HTA) practices fail to account for the impacts of healthcare interventions on broader society beyond the healthcare sector. We propose a novel conceptual framework, highlighting its three components (distributional cost-effectiveness analysis [DCEA], input-output model, and voting scheme) and their contributions to capturing the economic and societal ripple effects of healthcare interventions. This manuscript also outlines a case study in which the framework is applied to the reassessment of a previously evaluated digital health therapeutic for the treatment of opioid use disorder (OUD) compared with standard of care, demonstrating its practical application. The DCEA health value metric indicates that digital therapeutic is more equitable, favoring socioeconomically disadvantaged groups, while standard of care exacerbates health inequality by benefiting the already advantaged. Additionally, digital therapeutic shows potential for boosting productivity, raising income, and creating jobs, supporting its consideration by employer-sponsored health plans to optimize resource allocation for treating OUD. The conceptual framework provides insights for enhancing HTAs to incorporate the broader economic and societal impacts of healthcare interventions. By integrating DCEA, extended HTA analysis with input-output modeling, and a voting scheme, decision makers can make informed choices aligned with societal priorities, although further research and validation are necessary for practical implementation across diverse healthcare contexts.

The Implication of Political Risk and Specific Macroeconomic Variables on Total Revenue in Tourism Industry

Political risk is one factor that influences tourism performance as a tourist is more sensitive to the hosting country’s political environment. In addition, to the effect of country risk on the tourism industry, the global economy has recently experienced severe shocks due to high inflation rates, political risk, and currency volatility. This paper aims to investigate the implications of political risk, inflation, and exchange rate volatilities on tourism revenue in South Africa. A sample of 144 monthly data was used to assess both long-run and short-run relationships amongst the study variables using the ARDL cointegration and error correction model approaches to achieve the study objective. Results indicated that political risk, inflation rate, and exchange rate volatility influence long-term revenue changes in the tourism industry. In contrast, real effective exchange rates and inflation significantly impact total revenue in the tourism sector. The findings also indicated that political risk has no short-term effect on tourism revenue. Based on these findings, the study recommends that the country's political stability increase, increasing the number of tourist arrivals and resulting in growing revenue for the tourism industry in S.A. Additionally, the South African reserve bank should revise its exchange-rate pegging, monetary targeting, and inflation targeting to reduce the effects of inflation on tourism revenue.