State Incentives Research Articles

The Role of Social Entrepreneurship in Ensuring the Social Security of the State

Purpose: The article considers social entrepreneurship as a tool for ensuring social security - a promising option for solving various problems of modern society (unemployment, including vulnerable groups of the population, social adaptation, personal self-realization, self-sufficiency, etc.). Design/Methodology/Approach: The authors highlight the need to create the necessary prerequisites for expanding the business activity of social entrepreneurship through the implementation of scientifically sound and well-formulated state incentive policy Findings: the results of the analysis of the terminological field of social entrepreneurship are presented. Practical Implications: a clear understanding of the economic boundaries of social entrepreneurship will create an adequate legal framework for its functioning and form criteria for referring to it for the possibility of participating in competitive and grant projects to obtain extra funding. Originality/Value: in the context of social security, the problem of social entrepreneurship has not been previously studied, while it has significant potential in light of the need to improve the quality of life of citizens (especially complicated by the negative consequences of the spread of the coronavirus infection COVID-19), which, of course, is an essential component of social security.

Employment and state incentives in transition economies: Are subsidies for FDI ineffective? The case of Serbia

This study analyses the effects of government subsidies for foreign direct investment (FDI) on employment at the municipal level in Serbia. It finds that the positive correlation of subsidies with employment is limited to the creation of subsidized jobs. In other words, subsidies are ineffective in creating additional jobs, beyond the jobs created by subsidized multinational enterprises (MNEs). There is no crowding-in and there is some evidence of crowding-out in the least developed municipalities. The municipalities that received subsidized investments did not experience higher employment in comparison with the period of no subsidies and in comparison with municipalities that never received subsidized investments. Some positive effects emerge, with a two-year lag, in the municipalities which, conditional on the level of development, lowered wages. The key policy implication is that subsidy-driven FDI policy, based on financial subsidies per job created, does not lead to a sustained employment growth pattern. Policymakers might need to target high value-adding activities of MNEs that induce the creation of domestic value added.

DeCovidation = Deinstitutionalization. Independent Living and Inclusion in the Community

The global coronovirus (Covid-19) pandemic has been revealed what about half of the world’s deaths are recorded in large institutions of the elderly and people with disabilities, and these are later thought to be incentives for states to take active deinstitutionalisation efforts. In order for deinstitutionalisation actions to respond to its ideological origins, which lie in the provisions of the United Nations Convention on the Rights of Persons with Disabilities, in the necessary legal instruments and in clarifying that Member States are responsible. The article reveals how the deinstitutionalisation processes that have already started are implemented and evaluated in Central and Eastern Europe and discusses their problems. Content analysis was used to investigate the Soviet regime, leading to the implementation of official and alternative (shadow) reports on the United Nations Convention on the Rights of Persons with Disabilities.

Effects of Renewal Investments in Immovable Cultural Heritage on Slovenian Public Finances: Convergence with Selected EU Countries

In our paper we provide a measure of the optimal state incentive needed for the purpose of regular investment in maintaining immovable cultural heritage. Slovenia annually needs 32.7 million euros of investment for the maintenance of its immovable cultural heritage, which is feasible with 16.4 million euros of state subsidies. Comparing the mechanisms of selected EU countries, we show convergence occurrences using an indirect approach. Investments in cultural heritage represent an increase in one of the components of final demand with a positive impact on the economy. This was assessed with Leontief's production function (effect via reproduction chain). Investments in the maintenance of immovable cultural heritage also have a positive impact on tourism revenue. According to the results of the input-output analysis, regular maintenance annually results in 60.9 million euros' value added with 22.4 million euros higher general government revenue. The net fiscal effect of incentives for these investments is positive for 36.5% of public funds spent.

Policy Recommendations to Promote Integrated Mental Health Care for Children and Youth.

Policy Recommendations to Promote Integrated Mental Health Care for Children and Youth.

Criminal Threats Undermining Indo-Pacific Maritime Security: Can International Law Build Resilience?

Maritime security in the Indo-Pacific region is strategically important to not only the surrounding states, but also those with an interest in its good governance, to support safe passage and natural resources extraction. Criminal threats, such as maritime piracy and illegal fishing, enabled by corruption and the potential for terrorism, undermine regional maritime security and therefore, there is incentive for states to respond cooperatively to secure the region. Drawing on broken windows crime theory, implicitly supporting the continuation of criminal threats within the region may enables exiting crimes to proliferate. With varying legal and political frameworks and interests across the Indo-Pacific region, achieving cooperation and harmonisation in response to regional maritime-based criminal threats can be challenging. As such, to respond to criminal threats that undermine maritime security, this article argues that from a criminological perspective, aligning states through existing international law enables cooperative regional responses. Indeed, given the prevalence of corruption within the region enabling serious criminal threats, harmonising through existing counter-corruption architecture may be a suitable platform to build from.

On the issue of state incentives for employees of agricultural organizations on the example of the Republic of Sakha (Yakutia)

On the issue of state incentives for employees of agricultural organizations on the example of the Republic of Sakha (Yakutia)

Forms and methods of state incentives for the creation of special economic zones

Forms and methods of state incentives for the creation of special economic zones

Fiscal equalization as a driver of tax increases: empirical evidence from Germany

This paper exploits the devolution of taxing powers in the German federation to study the effects of fiscal equalization on subnational governments’ tax policy. Based on an analysis of the system of fiscal equalization transfers, we argue that the redistribution of revenues provides incentives for states to raise rather than to lower their tax rates. The empirical analysis exploits differences in fiscal redistribution among the states and over time. Using a comprehensive simulation model, the paper computes the tax-policy incentives faced by each state over the years and explores their empirical effects on tax policy. The results support a robust and strong incentive effect that works through the tax-base. When facing full equalization, a state is predicted to set the rate of the real estate transfer tax at about 1.3 percentage points higher than without. Our analysis also shows that the incentive to raise tax rates has proliferated because individual states’ decisions to raise their tax rates have intensified fiscal redistribution over time.

Long‐term impacts of grazing management on land degradation in a rural community of Southern Italy: Depopulation matters

AbstractDepopulation and economic marginalization of rural districts have induced a progressive land abandonment in agricultural and pastoral districts. In Europe, areas at higher risk of farmland abandonment are characterized by low‐intensity pasture systems whose fate is strongly dependent on state incentives or subsidies to rural development promoting more sustainable land‐use trajectories. Especially in Southern Europe, undergrazing is the main driver of pasture degradation. In such a context, a land management preserving pasture resilience requires a wider knowledge about the impact of practices on the ecological characteristics of pastures and an improved understanding of complex socio‐environmental interactions underlying the adoption of such practices. Based on these premises, this study investigates the extent to which the past land management reflects the current state of agro‐pastoral systems in a local community of Southern Apennine (Basilicata, Italy). Based on a multi‐scale analysis integrating multiple sources of data and exploratory techniques, three land‐use trajectories with different implications for land degradation were identified: (a) areas completely abandoned, (b) areas with a decrease in grazing where the management system is remained unchanged, and (c) areas characterized by a decrease in grazing with changes in the management system. Results outline the importance of landscape history shaping (optimal and sub‐optimal) land management and the influence of landscape structure on livestock performances within different farm management types.

Intelligent Predictive Analytics for Sustainable Business Investment in Renewable Energy Sources

Willingness to invest in renewable energy sources (RES) is predictable under data mining classification methods. Data was collected from the area of Evia in Greece via a questionnaire survey by using a sample of 360 respondents. The questions focused on the respondents’ perceptions and offered benefits for wind energy, solar photovoltaics (PVs), small hydro parks and biomass investments. The classification algorithms of Bayesian Network classifier, Logistic Regression, Support Vector Machine (SVM), C4.5, k-Nearest Neighbors (k-NN) and Long Short Term Memory (LSTM) were used. The Bayesian Network classifier was the best method, with a prediction accuracy of 0.7942. The most important variables for the prediction of willingness to invest were the level of information, the level of acceptance and the contribution to sustainable development. Future studies should include data on state incentives and their impact on willingness to invest.

International Corporate Tax Regime Post-BEPS: A Regulatory Perspective

Among the other rationales underlying the existence of corporate income tax (CIT) as a standalone tax on the profits derived by legal entities, some scholars have underlined its regulatory function, i.e. its potential to steer the behaviour of private sector actors. In this regard, it has to be noted that significant constraints on the use of CIT as a regulatory tool have emerged in the aftermath of the base erosion and profit shifting (BEPS) project. One example may be found in the new ‘modified nexus approach’ with regard to tax incentives for R&D activities. This article takes a regulatory perspective regarding the recent attempts to overhaul the ‘international corporate tax regime’, resulting in the adoption of new hard- and soft-law rules. The regulatory perspective is understood here as the capacity of the rules of international tax law to affect the behaviour of both corporate taxpayers in arranging their cross-border activities and the States in designing their CIT systems. The BEPS initiative, being an unprecedented exercise in tax coordination aimed at widespread avoidance practices, serves as a prime example of how international tax law fulfils its regulatory function, by guiding the behaviour of both governments and taxpayers. Accordingly, the paper argues that the international corporate tax regime post-BEPS exhibits two sides of the same regulatory coin: on the one hand, taxpayers are disincentivized to resort to particular types of international tax planning; on the other, the incentives for individual States to engage in corporate tax competition are significantly reduced. It is further argued that the most far-reaching proposal in this area relates to ‘global minimum tax’, drawn under Pillar Two of the ‘BEPS 2.0’ initiative. international tax law, tax competition, regulatory taxation, tax incentives, tax avoidance, BEPS, global minimum tax.

Interlocal Collaboration and Local Fiscal Structure: Do State Incentives Matter?

Interlocal collaboration is considered an important tool for cost‐saving. States, therefore, have incentivized interlocal collaboration in different ways. To understand the budgetary consequences of interlocal collaboration and state incentives, we examine counties in Nebraska where the State uses two incentive mechanisms—resource restrictions and additional access to restricted revenues granted to counties with collaboration. This study finds that county expenditures are lower when they spend more through collaboration. While this lower spending is related to lower revenues in counties less constrained by state restrictions, the results for counties more constrained are unclear. State incentive structures may matter for such variations.

Primary drug prevention — stopping use before it starts — under budget threat

The White House budget request for fiscal year 2021 for the Substance Abuse and Mental Health Services Administration (SAMHSA) proposes to zero out a major prevention program — the Strategic Prevention Framework State Incentive Grant — Partnerships for Success program. This is a cut of $109 million. It recommends using the prevention set‐aside (20%) from the Substance Abuse Prevention and Treatment block grant instead. But it doesn't give any more money to the block grant.

YATIRIM TEŞVİKLERİNİN TRA2 BÖLGESİNDEKİ İŞLETME FAALİYETLERİNE EKTİSİ

State incentives have a great importance in state policies that implemented for progress and development of countries and for the fair distribution of public resources. However, in order to ensure more efficient and effective use of incentives, the needs of enterprises, sectors and regions that benefit from incentives should be determined accurately and their satisfaction levels should be evaluated. In this study, importance level of regional problems for sectors in TRA2 region which consists the provinces in the Eastern Anatolia Region (Agri, Kars, Igdir and Ardahan) have been examined. The regional problems affecting sectors are; the distance of the region to raw materials, problems arising from infrastructure, distance to the market, transportation problems, lack of qualified personnel in the region and lack of market gap in the sectors. It has been tried to determine whether the incentives affect the negative conditions in the region in terms of increasing the production and employment in the region and in making future investment decisions. In the study, it have been examined the establishment purposes, establishment locations and the problems of regional enterprises that are benefitting from incentives.

Air Transport Area as an Object of State Regulation

It is emphasized that the aviation area is a high-tech sector of the economy of any state, the dynamic development of which requires streamlining national legislation in this area, expanding international cooperation, updating legal instruments used by public authorities in state regulation in the air transport area. In this regard, it is emphasized that the efficiency of the air transport area directly depends on the status of state regulation of aviation activities.
 As a result of the legislative understanding of the composition of air transport, it is concluded that air transport in this case is understood in a broad sense not only as a set of direct aircraft, but also as a holistic system, which also includes a set of objects for ensuring air transport functioning, air traffic control, etc. It is emphasized that such an interpretation of air transport is not entirely appropriate, as it significantly expands the understanding of this term. In this regard, the expediency of understanding air transport exclusively as a set of vehicles that are united only by their inherent characteristics (transportation in the airspace) is justified. And it is already expedient to single out the objects, the functioning of which has the providing (service) nature and creates conditions for the proper operation of the air transport itself.
 The significance of aviation and transport for Ukraine, which ensures its functioning, is revealed. It is argued that today it is important to ensure effective state support, for example, by updating the existing system of effective state preferences and incentives for planning and production of air transport. The specific features inherent in the field of air transport as an object of state regulation are formulated.
 It is established that the state, realizing the importance of state support for the planning and development of modern innovative high-tech air transport, takes appropriate steps in this direction; the specified steps are outlined. The peculiarities of the negative impact of the pandemiological situation in the world since the beginning of 2020 on the aviation area of Ukraine are characterized.
 It is concluded that the state needs to respond appropriately, i.e. to implement appropriate state regulation of the aviation area functioning during the pandemic, in particular in the implementation of air transportation in exceptional cases, the operation of airfields and airports in quarantine, aircraft parking in designated areas, standardization of issues, related to the return of passengers for canceled flights or their rebooking, providing state support to the aviation area in connection with the cessation of financial revenues from all market participants (including by allocating subsidies from the state budget, providing state aid to ensure minimal operation of airports and airfields, exemption of airlines from paying certain types of taxes for a certain period of time), etc.

Energy Saving Potential of Industrial Solar Collectors in Southern Regions of Russia: The Case of Krasnodar Region

Industrial low-temperature processes are a promising sector for the introduction of solar collectors, which can partially, and in some cases, completely, replace traditional heat supply technologies. In Krasnodar Region (Russia), it is shown that the energy-saving potential when introducing industrial solar collectors only at food industry enterprises can make up 16%–17% of the total amount of thermal energy produced in the region annually. The global market of industrial solar collectors is currently developing almost without any government incentives, only due to market mechanisms, which indicates the commercial attractiveness of the technology. According to the predicted estimates, levelized cost of energy produced by industrial solar collectors in the southern regions of Russia may amount to 3.8–6.6 rubles per kWh. Even though the forecast estimates are higher than current tariffs, the economic feasibility of using solar collectors in the industry increases significantly if it is not possible to connect to centralized heating networks, as well as in the case of the seasonal load of industrial facilities. As a measure of state incentives for the development of industrial solar collectors in Russia, we offer state co-financing of demonstration projects of Russian manufacturers. This will increase the level of awareness of the population and businesses about the capabilities of this technology. Also, it will increase the technical competencies and innovative potential of companies involved in the production and installation of solar collectors.

White House budget request decimates substance use prevention

The White House budget request for fiscal year 2021 for the Substance Abuse and Mental Health Services Administration (SAMHSA) proposes to zero out a major prevention program — the Strategic Prevention Framework State Incentive Grant — Partnerships for Success program. This is a cut of $109 million. It recommends using the prevention set‐aside (20%) from the Substance Abuse Prevention and Treatment (SAPT) block grant instead. But it doesn't give any more money to the block grant.

The ACA’s Medicaid Expansion: A Review of Ineligible Enrollees and Improper Payments

Enrollment in state-optional Medicaid expansions has significantly exceeded even the most optimistic forecasts. The open-ended federal financing of new adult Medicaid enrollees at elevated match rates — in excess of 90 percent — creates incentives for states and healthcare providers to improperly enroll new beneficiaries and inadequately monitor costs and eligibility. Several sources find that many states have done a poor job ensuring Medicaid enrollment only of those who meet eligibility requirements. First, several federal audits find massive problems with both incomplete and incompetent reviews and large-scale improper eligibility determinations. We summarize recent work that estimates causal effects of Medicaid expansions on enrollment. Using the publicly available American Community Survey, we demonstrate large increases in potentially improper enrollment from 2012 to 2017 in many expansion states across the United States. The evidence points to egregious eligibility errors in many states, including Arkansas, California, Colorado, Kentucky, Louisiana, Montana, New Mexico, New York, Oregon, Rhode Island, Washington, and West Virginia. Other expansion states have had much lower rates of improper enrollment. We offer recommendations to Congress, the Centers for Medicare and Medicaid Services, and the Congressional Budget Office on ways to confront improper enrollment in Medicaid, including both fundamental reform of program financing and meaningful federal oversight.

Государственное стимулирование инвестиционной активности в ресурсном регионе: дальневосточный вариант

The authors studied the actual policies and emerging effects of state incentivizing of investment activity instruments under the ‘new model’ of development for the Far East of Russia. There were shown the specifics of localizing investments in the resource region in shape of preferential regimes of Territories of Advanced Social and Economic Development (TAD or ASEZ Advanced Special Economic Zones) and also extraterritorial preferences as direct subsidies from the federal budget to infrastructure projects of strategically important investment projects and regional investment projects. The effects of these instruments employed in the Far Eastern Federal District in 2014–2020 demonstrate that the package of state measures formed for attracting investments and its separate elements (royalty benefits, the criterion of maximum attraction of private investments for every rouble of budget ones, etc.) have promoted investments mainly in extraction of minerals in the total surveyed range of support instruments. The outcome of these preferences was further growth of resource-based industries in the Far East economy structure (which to a certain extent predetermines the perspective economy structure of the macro region). The analysis of the rate of accumulation (a share of investments in the regional Gross Domestic Product) as a factor of economic growth showed that the majority of Far Eastern regions (except the mono-mineral Sakhalinskaya and Magadanskaya oblasts and the Chukotsky Autonomous Okrug) do not reassert the role of resource-based industries as key drivers for their economic growth which would have justified state incentives for extraction of mineral resources in particular. Certain modifications have been revealed in the very instruments of state incentives under the ‘new model’ of development in the Far East of Russia among which is a blurring of border lines between preferential territories to legitimize incentivizing of mineral companies; a changed (reduced) role of regional authorities in implementation of different instruments; forming ‘multi-layer’ preferences in the interest of mineral companies. It was demonstrated that in the surveyed contour of key actors interacting in the process of implementing different instruments of a ‘new model’ for development of the Far East of Russia (federal and regional administration, businesses) with greater vividness comes to the fore a tendency for shaping key outcomes of preferences in mineral companies