Share Of Spending Research Articles

Sustainable public procurement for supply chain resilience and competitive advantage

Public procurement plays a crucial role in national economies, as it represents a significant share of public spending. Governments can thus use this considerable purchasing power to promote environmental sustainability, social responsibility, and economic efficiency, while encouraging the supplier market to innovate and adopt more sustainable practices to remain competitive, and to generate more resilient supply chains. Given the interdisciplinary nature of the subject of sustainable public procurement (SPP), the documentation is abundant and diverse, hence the need for an updated literature review especially in the aftermath of the COVID-19 crisis period. This article consists of a systematic literature review focusing on articles with an empirical approach. The results reveal, among other things, 8 main research themes subdivided into 19 sub-themes, with a dominance of literature on the obstacles and incentives related to the implementation of SPP, while those concerning e-procurement and the analysis of the social life cycle remain relatively limited. The study also underscores the role of local economies and SMEs in public procurement strategies. It highlights a trend towards geographical diversification, indicating the global significance of SPP, with noticeable differences in adoption between developed and developing countries. The review calls for future research to focus on developing practical frameworks and tools for integrating sustainability more comprehensively in public procurement. The findings illuminate the pivotal role of SPP as a mechanism steering societies towards a sustainable, resilient, and equitable future, particularly in a post-pandemic world.

LOCAL FINANCES IN WESTERN BALKAN COUNTRIES: FOCUS ON OWN -SOURCE REVENUES AND CAPITAL INVESTMENTS

This study examines the fiscal dynamics of local governments’ finances in the Western Balkan countries, focusing on their own source revenues and capital investments, made from the municipalities. While spending for capital investment has increased in nominal terms, the share of municipal spending on capital investments has been downwardly unstable over the past 16 years. In addition to central government transfers, several significant factors contribute to the determination of municipal own-source revenues, including central and local public investment, current expenditures, and municipal development index. The study reveals that capital investment depends on its own source revenues or capital transfers from the central government, where local capital expenditure emerges as a robust determinant, exerting a stronger influence on municipal fiscal autonomy compared to central government investments. This finding underscores the importance of local capital expenditure in enhancing fiscal independence at the local level. This research emphasizes the need for a comprehensive understanding of investment allocation, development indicators, and promoting local revenue mobilization. The findings suggest that enhancing local fiscal autonomy requires a shift in policy focus towards stimulating local capital expenditure and prioritizing human development. By identifying the factors that influence municipal own-source revenues, this study provides valuable insights for local management in strengthening the financial capacities of local governments in the Western Balkan countries.

NATO, 2% to Defense, 20% to Equipment: Cumulative Nature of Military Spending and the Role of the Economic Perfomance

Military spending is a widely discussed topic, especially in the current geopolitical landscape. Expenditures on “equipment” play a pivotal role in total defense spending.. However, the nature of the equipment expenditures is cumulative. Thus, when trying to estimate the capability of a state we should consider a longer period, not just one year. The aim of this article is, therefore, to offer (i) an exploratory analysis of the cumulative equipment expenditures of NATO countries between 2014-2023 and (ii) to verify – by using OLS multivariate regression – the extent to which the GDP per capita primarily drives these expenditures (adjusted per soldier), the share of defense spending from the GDP, or by the fraction of defense spending that goes specifically to equipment. The results show that the GDP per capita is by far the most powerful predictor. *

Fuel Subsidy and Education Sector Financing in Nigeria: A Short-run Adjustment to Equilibrium Approach

This study examined the impact of fuel subsidy on education sector financing in Nigeria from 1990 through 2023. Annual data were obtained from the Nigeria Petroleum Corporation and World Development Indicators, (WDI) on variables such as fuel subsidy, government expenditure on education sector, Oil Revenue, pump price of Premium Motor Spirit and secondary school enrolment in Nigeria. A bound cointegration test and ECM were employed. Granger test for causality was also used to ascertain the direction of causation in the series. The estimated error correction term, ECT (-1) is significant. There is no causal relationship from fuel subsidy to education sector financing. However, education sector financing granger causes fuel subsidy. Premium Motor Spirit and education sector financing were found to granger-cause each other. The study recommends that government should ensure that fuel subsidy is not allowed to deprive education of its fair share of government spending, given that current spending on the sector has been established to have implication for the sectors growth in the future years.

Newly and Previously Eligible Medicaid Enrollees Differ, but Not in Health Care Expenditures

Abstract: In 2014, the Affordable Care Act (ACA) expanded the role of Medicaid by encouraging states to increase eligibility for lower-income adults. As of 2024, 10 states had not adopted the expanded eligibility provisions of the ACA, possibly due to concerns about the state's share of spending. Using the Medical Expenditure Panel Survey (MEPS), we documented how health care utilization, expenditures, and the overall health status of newly eligible enrollees compare with enrollees who would have been eligible under their states' rules before the ACA. Our estimates suggest that, during 2014–16, newly eligible Medicaid enrollees had worse health and greater utilization and expenditures than previously eligible enrollees. However, during 2017–19, newly and previously eligible enrollees had comparable per capita health expenditures across six types of health spending. We find some evidence that changes in Medicaid enrollment composition muted observed differences between eligibility groups.

Trade, productivity, and services input intensity

AbstractUsing rich administrative microdata on Ugandan firms, we investigate the response of productivity to trade participation for firms in all sectors of the economy, and the moderating role of services input intensity. We find that companies that participate in trade, especially through importing, display a productivity premium. Firms that export are more productive only for a sub-sample spanning the manufacturing sector. We do not find evidence that using service inputs more intensively enhances the relationship between trade participation and firm productivity. Rather, we find some evidence that a higher share of spending on services inputs attenuates the positive relationship between trade status and productivity. This suggests that the quality of available services may not be up to the standard required to be internationally competitive.

Prevalence of Independence at Home–Qualifying Beneficiaries in Traditional Medicare, 2014-2021

The Centers for Medicare & Medicaid Services Innovation Center Independence at Home (IAH) demonstration, a test of home-based primary care operating in a value-based shared-savings payment model, ended December 2023 after a decade of consistently showing savings to Medicare. It is important to assess whether high-need, IAH-qualified beneficiaries continue to pose a growing challenge to traditional Medicare (TM) or if Medicare Advantage (MA), with programmatic features favorable to caring for this subset of the general Medicare population, can disproportionately provide such care. To examine the size and share of IAH-qualified beneficiaries in TM and MA. This cohort study used all Medicare claims data and MA encounter data for 2014 and 2021. IAH qualifying criteria were applied to the TM populations enrolled in Parts A and B in 2014 and 2021, and to MA enrollees in 2021. Growth in the number of IAH-qualified TM beneficiaries from 2014 to 2021 was calculated, and the proportions and numbers of IAH-qualified enrollees in the total 2021 TM and MA populations were compared. Data were analyzed between April and June 2023. The number and share of beneficiaries meeting IAH criteria in TM and MA; the share of TM spending among IAH-qualified beneficiaries. Among 64 million Medicare beneficiaries in 2021, there were 30.55 million beneficiaries in TM with Parts A and B coverage, down from 33.82 million in 2014. The number of IAH-qualified beneficiaries in TM grew 51%, from 2.16 million to 3.27 million, while their proportionate share in TM grew 67% from 6.4% to 10.7% of TM between 2014 and 2021. IAH-qualified beneficiaries represented $155 billion in 2021 Medicare Parts A and B spending, 44% of all TM spending, up from 29% of total spending in 2014. In 2021, 2.15 million IAH-qualified beneficiaries represented 8.0% of Medicare Advantage enrollees. Combining TM and MA, 5.42 million IAH-qualified beneficiaries represented 9.3% of all Medicare beneficiaries, with 3.27 million (60.3%) being insured by TM. In this cohort study of IAH-qualified Medicare beneficiaries, the share of IAH-qualified beneficiaries in TM grew between 2014 and 2021, with 60% of Medicare high-need beneficiaries accounting for 44% of TM spending. The Centers for Medicare & Medicaid Services should continue to operate value-based programs like IAH that are specifically designed for these high-needs individuals.

Determinants of Kuwait long‐run and short‐run economic growth

AbstractThis paper examined the relationship between growth and its demand side determinants in Kuwait from 1970 to 2020. A set of autoregressive distributed lag models were applied to estimate the long‐ and short‐run relationships between economic growth and its determinants. The results suggest that exports, gross fixed capital formation (investment), imports and household spending exhibit a long‐run relationship with economic growth. While exports, gross fixed capital formation, share of government spending in GDP and household spending exhibit short‐run relationship with growth. Moreover, the results suggest that long‐ and short‐run economic growth in Kuwait is mainly driven by exports and to a lesser extent household spending. As Kuwaiti exports are dominated by oil exports and oil production is limited to the organisation of petroleum exporting countries quota this limits the policy makers from the most effective tool to stimulate growth. In this context Kuwait needs to enact policies to diversify exports, build a local industrial base, utilise imports to feed into non‐oil export sectors, direct investment spending to develop non‐oil industries and encourage FDI to facilitate innovation and technology transfers and spill overs to progress from a volatile oil‐based economy to a more diversified and sustainable growth path.

Economic impact of government health expenditure: An application of the computable general equilibrium model to the Iran.

Considering the increase in health expenses and the government's role in health financing, this study investigated the economic impact of increases in the share of the health sector in the government budget while taxes remain unchanged and government spending is fixed. The economic model used in this study was a macroeconomic Computable General Equilibrium (CGE) model. This model was calibrated using a 2011 Social Accounting Matrix (SAM) Of Iran. The CGE model was solved with non-linear programming using the General Algebraic Modeling System package, version 2.50. The effect of this simulation on the government budget deficit, the production of different sectors of the economy, and the employment rate was investigated. Based on our fundings the elasticity of substitution in the agricultural and industrial sectors is higher than in the health and service sector. Also, the biggest decrease in production occurred in the industry, agriculture, and service sectors, respectively. With the doubling of the share of government spending in the health sector, the employment rate of this sector has increased by 40.9%, but the highest decrease in the ignition rate is related to the service sectors (-2.7%), agriculture (-0.23%), and industry (-0.14%). Increasing the share of government spending in the health sector in comparison with other sectors of the economy, provided that government spending is maintained in general, leads to a decrease in production and economic welfare. It seems that the Iranian government should seek to increase the sources of health financing and the share of government expenditures in the health sector with other ways in order to improve the health level of the society and have a positive effect on other economic sectors.

Slutsky compensating variation for assessing inflationary pressure on the income of the Ukraine population

The article is devoted to the improvement of analytical tools, applying for household well-being assessment through using Slutsky compensating variation concept for the consideration of changes in the structure of consumer expenditures, as a factor, impacting the power of inflationary pressure. Authors propose to use the formula for calculating the compensating variation of income on the basis index of consumer price for every commodity group with a specific weight relevant to the share of spending on the appropriate commodity in the consumer budget. Calculations according to the proposed methodology made it possible to reveal significant differences in the distribution of inflationary pressure between Ukrainian households with different equivalent per capita incomes. The trend of shifting the burden of inflation to the least wealthy sections of the population looks extremely threatening. Having a highly concentrated demand (the majority of their budget is spent on essential goods, the prices of which are rising the fastest), such households face extremely unfavorable conditions for the development and even simple reproduction of human potential, and the effectiveness of social protection programs is clearly insufficient to counteract the decline in well-being and risks of marginalization of these population groups.

Cost-effectiveness of the top 100 drugs by public spending in Canada, 2015–2021: a repeated cross-sectional study

ObjectivesTo assess the distribution and spending by cost-effectiveness category among those drugs with the highest public spending levels in Canada.DesignRepeated cross-sectional study.SettingThe Canadian provinces of Manitoba, Ontario, New Brunswick, Nova...

Decomposition of medical imaging spending growth between 2010 and 2021 in the US employer-insured population.

Medical imaging, identified as a potential driver of unsustainable US health care spending growth, was subject to policies to reduce prices and use in low-value settings. Meanwhile, the Affordable Care Act increased access to preventive services-many involving imaging-for employer-sponsored insurance (ESI) beneficiaries. We used a large insurance claims database to examine imaging spending trends in the ESI population between 2010 and 2021-a period of considerable policy and benefits changes. Nominal spending on imaging increased 35.9% between 2010 and 2021, but as a share of total health care spending fell from 10.5% to 8.9%. The 22.5% growth of nominal imaging prices was below inflation, 24.3%, as measured by the Consumer Price Index. Other key contributors to imaging spending growth were increased use (7.4 percentage points [pp]), shifts toward advanced modalities (4.0 pp), and demographic changes (3.5 pp). Shifts in care settings and provider network participation resulted in 2.5-pp and 0.3-pp imaging spending decreases, respectively. In sum, imaging spending decreased as a share of all health care spending and relative to inflation, as intended by concurrent cost-containment policies.

Identifying the Depreciation Rate of Durables from Marginal Spending Responses

AbstractThis paper presents a new method to estimate the depreciation rate of durable goods using a combination of identified marginal and average spending shares. We apply our method to Chinese spending responses to disposable income changes induced by monetary policy in 2008–09. The marginal total spending response is 0.40. About 46% of this marginal spending response is due to durable goods. By combining this marginal spending share on durables with an average spending share of 14%, we estimate the annual depreciation rate of durables in China to be 0.17.

The Revival of US Hospital Care, 2004-2019.

Between 2004 and 2019, the US hospital industry reversed the 21-year decline in its share of national health spending. To measure and explain changes in hospital utilization, cost, charges, and inpatient case mix. Principal sources were the American Hospital Association annual survey, the National Inpatient Sample, and the Healthcare Cost Reporting Information System. The study included all US community hospitals (n=5141 in 2019). We used factor decomposition to separate the impacts of population, utilization, unit cost, and charge markups on the growth in cost and charges for inpatient and outpatient care nationwide and for each state. For unit cost, we separated the impacts of input price inflation and treatment intensity. To measure the inpatient case mix, we applied an all-patient diagnosis-related groups algorithm. Between 2004 and 2019, charges more than tripled to $4.11 trillion. The cost more than doubled to $911 billion. For inpatient care, discharges fell 5%, discharges per person fell 15%, cost per discharge increased 88%, and charge markups rose 43%. For outpatient care, visits rose 36%, visits per person rose 21%, cost per visit rose 119%, and charge markups rose 52%. Treatment intensity increased by 33% per discharge and 55% per visit. Nationwide, the inpatient case mix increased by 34%, reflecting sicker patients and better clinical documentation. We quantified 3 important trends: rapid growth in outpatient visits, increased treatment intensity, and sustained increases in markups. Increased treatment intensity was the largest factor behind $491 billion in hospital cost growth between 2004 and 2019.

Economic crises as critical junctures for policy and structural changes towards decarbonization – the cases of Spain and Germany

ABSTRACT Crises may act as tipping points for decarbonization pathways by triggering structural economic change or offering windows of opportunity for policy change. We investigate both types of effects of the global financial and COVID-19 crises on decarbonization in Spain and Germany through a quantitative Kaya-decomposition analysis of CO2 emissions and through a qualitative review of climate and energy policy changes. We show that the global financial crisis resulted in a critical juncture for Spanish CO2 emissions due to the combined effects of the deep economic recession and crisis-induced structural change, resulting in reductions in carbon and energy intensities and shifts in the economic structure. However, the crisis also resulted in a rollback of renewable energy policy, halting progress in the transition to green electricity. The impacts were less pronounced in Germany, where pre-existing decarbonization and policy trends continued after the crisis. Recovery packages had modest effects, primarily due to their temporary nature and the limited share of climate-related spending. The direct short-term impacts of the COVID-19 crisis on CO2 emissions were more substantial in Spain than in Germany. The policy responses in both countries sought to align short-term economic recovery with the long-term climate change goals of decarbonization, but it is too soon to observe their lasting effects. Our findings show that crises can affect structural change and support decarbonization but suggest that such effects depend on pre-existing trends, the severity of the crisis and political manoeuvring during the crisis.

Формування інтелектуальних ресурсів світової економіки в контексті сталого економічного розвитку

During the global transformations of the modern world, due to rapid technological progress, changes in the geopolitical order, the formation of modern socioeconomic systems and other factors, the role and importance of education is growing. One of the relevant processes that determine the modern world reality is the formation and development of intellectual resources that ensure the introduction of technological innovations in all spheres of life, and are also an important factor in sustainable economic development. The basis for the development of intellectual resources is education, in particular higher education, which forms the modern worldview of a person, contributes to the assimilation of basic knowledge/achievements of mankind, the development of modern cognitive skills, the development of technologies, professional activity, and forms the creative potential of the individual. The study is devoted to highlighting current trends in the development of the educational potential of intellectualization of the economy in the global, regional and national dimensions, and also focuses on the diversity of creating conditions for the intellectual development of the population in regions and countries of the world with different socioeconomic structure and per capita income. An analysis of statistical data is carried out, in particular, an analysis of the number of students and financing of higher education in regions, groups of countries by income level and individual countries of the modern world during 2012–2022; systemic and regional trends and features of building intellectual potential in the modern world are identified. The countries with the largest number of students have been defined, with a steady trend of its growth. The tendencies of growth and decline in the number of students in the group of developed countries, in the group of countries with economies in transition and in the group of developing countries are analyzed. It is concluded that there is a steady increase in the number of students in countries with high rates of economic growth. These include China, India, Argentina, Brazil, Mexico, Chile, Turkey, Egypt and others. In the regional context, the leaders in terms of the number of students are the countries of Europe, East Asia, and Latin America. At the same time, the downward trend in the number of students is observed in countries with economies in transition, where education and enlightenment were considered one of the main social values. In accordance with the requirements of technological transformation, the whole world invests in the development of human capital, increasing funding for education. An analysis of expenditures on education in groups of countries by income showed that these expenditures are unevenly distributed and in terms of per capita are very different from each other. General, State-owned and other sources of financing education are considered. It is found that the largest share of public spending on education belongs to the group of high-income countries, while household spending in these countries is several times lower. The opposite is the trend in the ratio of funding sources in low-income countries, where public private spending is comparable, and official development assistance has recently declined sharply. It is concluded that there are significant differences in educational opportunities between countries and regions of the world, which have created different educational conditions in terms of access and quality. Among them are both developed and developing countries characterized by high rates of economic growth. Competitiveness in the modern global environment is obtained by those countries where education is a priority, and those countries where the formation of human capital mostly falls on the shoulders of the population lag behind, respectively.

Transformacija solventne potražnje i potrošnje hrane u Ukrajini u uvjetima rata

The article is devoted to the assessment of the state and peculiarities of the formation of the solvent demand for food products in Ukraine during the war and the determination of the optimal amount of wages to ensure the consumption of the main set of food products at the level of rational standards. A comprehensive analysis of structural changes in the solvent demand for food consumption in Ukraine in the war was carried out using the monographic method. Determination of actual and aggregate costs at the level of rational standards for food products was carried out using the calculation-constructive method. The comparison of actual and necessary costs at the level of rational norms for nutrition was carried out on the basis of collected statistical and calculated data by the method of comparative analysis. It is recognized that the war has negative consequences in the nutrition of Ukrainians. During the first year of the war, the price affordability of food products decreased by 26.6% on average. In 2010-2022, the share of population spending on food remains very significant (from 51.6% in 2010 to 57.8% in 2022). In 2023, this indicator is expected to grow to 58.5%. It has been proven that in order to consume basic food products in accordance with rational norms, the population of Ukraine had to spend 1.56 times more in 2021 than the actual expenses. To achieve the level of consumption in accordance with rational standards in 2022, an additional 23,478 UAH per year, or 1,957 UAH per month, is needed. The forecast for 2023 predicts a deterioration of the ratio of actual food costs to costs under rational standards to 1.68. It was determined that in 2021 the wage level should be at least UAH 33,944 (EUR 1,131) per person per month, which is 2.41 times higher than the actual wage level in the country. The war worsened this ratio to 2.6. It was established that in 2023, for food at the level of rational consumption standards, a Ukrainian should earn 38,564 UAH (964 EUR per month), which is 2.9 times higher than the actual wage level (13,423 UAH or 335 EUR). The novelty of the study consists in the development and practical testing of the methodology for determining the optimal wage of Ukrainians to ensure the consumption of the main set of food products at the level of rational standards.

Однородность потребительской корзины и динамики инфляции в разрезе регионов

Introduction. Regional heterogeneity is among the factors that could define efficiency of central banks’ inflation targeting monetary policy. Purpose. The paper aims at assessing the impact of a commodity bundle structure of the RF constituents on regional inflationary processes by clustering based on regional consumer price indices and share of goods and services in the commodity bundle. Materials and Methods. The paper refers to k-means clustering. Results. The study shows that the commodity bundle structure affects inflation rate and volatility. A food share in the commodity bundle is the key distinguishing feature. The regions with a higher share of food in the commodity bundle are characterized with higher inflation volatility, while the regions with a higher share of services and non-foods in the commodity bundle reveal lower inflation volatility. The cluster with a high share of food in the commodity bundle is dominated by comparatively poor regions. The other cluster mostly consists of regions with million-plus cities. This indirectly confirms Engel’s law. It is worth noting that we could divide regions into two constant groups in 2016–2020, although in 2021 and 2023 we observed significant changes in the cluster centers determined by a change of a region’s consumption model. If a food share in region’s population spending declines and a spending share of such items as cars, travelling, and leisure goes up, then inflation volatility decreases. Conclusion. The shift from one cluster to another presupposes that population of the region should decrease their food expenditures and increase the consumption of goods and services which satisfy high-level needs. This is likely to reduce inflation volatility in Russia on the whole.

Directions for rationalisation of the public finance system in the event of the covid-19 crisis

ObjectivesPublic financial management is of the most global and complex nature. At this level, decisions are made that determine everything related to the collection and spending of public funds. However, we must be aware that at this level there are the greatest political entanglements, which are subject to transformation and are inextricably accompanied by changes in government teams and cooperating party coalitions. This causes general recommendations to be formulated on how to manage public funds. Discussions are held in the government or parliament forum focused on finding ways to reduce expenses. Another direction of political debates leads to a turn towards public revenues. This is expressed, for example, by striving to reduce the tax burden. The attention is therefore focused on two sides of the financial economy, i.e. on the processes of collecting and spending public funds.Material and methodsInduction was used as the main research method. It involves drawing general conclusions or establishing regularities based on the analysis of empirically identified phenomena and processes.ResultsMaintaining the stability of public finances may turn out to be one of the greatest challenges of Polish economic policy in the next few years.ConclusionsThe rate of fiscalism in Poland is lower than the average in the EU. Public revenues in Poland are characterized by a high share of social security contributions. The ratio of tax and contribution income to the potential tax base in Poland is relatively low in the case of consumption and comparable to other EU countries in the case of work. Between 2004 and 2014, the share of spending on social transfers in GDP in Poland decreased by 1.8 points. percent. which was the largest decline among all EU countries.

Scarcity and consumption priorities

This paper focuses on whether economic scarcity tend to change consumption priorities as measured by the share of spending on necessity goods relative to luxury goods in a large national supermarket chain in Israel for the years 2011–2018. Based on detailed weekly revenue data from that supermarket chain, we found that in weeks of economic scarcity (i.e., weeks without payments of social security allowances or salary), the spending on necessity goods, which are regulated products, is down by 4.8%, but the cut in spending on luxury goods is even more pronounced at 8%, and the difference between these two types of goods is up significantly by 3.2%. Within the luxury category, we observe a 10% or more decline in feast-related goods, indicating a “feast and famine” consumption strategy. Nevertheless, spending on food with label claims such as gluten-free and omega-3 eggs, is smaller (6%) than the overall spending on luxury goods in scarcity week but more than the overall spending on necessities.