scholarly journals Demand-side or supply-side stabilisation policies in a small euro area economy: a case study for Slovenia

Empirica ◽  
2021 ◽  
Author(s):  
Reinhard Neck ◽  
Klaus Weyerstrass ◽  
Dmitri Blueschke ◽  
Miroslav Verbič
Keyword(s):  
Open Economy ◽  
Labour Force ◽  
Small Open Economy ◽  
Public Spending ◽  
Supply Side ◽  
Demand Side ◽  
Demand And Supply ◽  
Tax Rate ◽  
Side Component ◽  
Stabilisation Policies

AbstractIn this paper we analyse the effectiveness of demand- and supply-side fiscal policies in the small open economy of Slovenia. Simulating the SLOPOL10 model, an econometric model of the Slovenian economy, we analyse the effectiveness of various categories of public spending and taxes during the period 2020 to 2030, assuming that no crisis occurs. Our simulations show that those public spending measures that entail both demand- and supply-side effects are more effective at stimulating real GDP and increasing employment than pure demand-side measures. This is due to the fact that supply-side measures also increase potential and not only actual GDP. Measures which foster research and development and those which improve the education level of the labour force are particularly effective in this respect. Employment can also be stimulated effectively by cutting the income tax rate and the social security contribution rate, i.e. by reducing the tax wedge on labour income, which positively affects Slovenia’s international competitiveness. Successful stabilisation policies should thus contain a supply-side component in addition to a demand-side component. We also provide a first simulation of potential effects of the Covid-19 crisis on the Slovenian economy, which is modelled as a combined demand and supply shock.

Problems and Holistic Solutions for Agricultural Businesses in Chiang Mai

2019 ◽  
pp. 1-8
Keyword(s):  
Language Skills ◽  
Educational Institutions ◽  
Supply Side ◽  
Demand Side ◽  
Chiang Mai ◽  
Demand And Supply ◽  
Industry Group ◽  
The Government ◽  
Integration Problems ◽  
Production Problems

This research aims to study the problems and find solutions of major agro-industries in Chiang Mai, Thailand. The sample was divided into two parts: The supply side was the government agency, educational institutions and civil society. Demand side was Agro-Industry entrepreneurs. The methodology was focus on meeting the stakeholder debate, and group workshop, the first step of the research was selected the potential agro-industry group to study then in the operating phase, the survey was conducted to analyze and synthesize the problems of agro-industry and find solutions by group meetings in order to present a holistic problem-solving model. This process will provide opportunity for stakeholders and related agencies to collaborate and propose appropriate guidelines for action. The results show that, within demand side, the three most important issues are labor issues, marketing and production problems respectively. While the supply side, the top three issues are the integration problems, lacking of language skills / expertise, and lacking of database. Based on the analysis of both demand and supply side, there is a lack of concrete cooperation from relevant agencies, especially in policy cooperation. Therefore, a policy that responds to the problems of agro-industry is essential for all agencies to focus on and implement concrete measures to address sustainable issues.

scholarly journals Characteristics Analysis of the Heat-to-Power Ratio from the Supply and Demand Sides of Cities in Northern China

Energies ◽  
2020 ◽  
Vol 13 (1) ◽  
pp. 242 ◽  
Author(s):  
Shunyong Yin ◽  
Jianjun Xia ◽  
Yi Jiang
Keyword(s):  
Supply And Demand ◽  
Northern China ◽  
Energy System ◽  
Energy Structure ◽  
Supply Side ◽  
Power Ratio ◽  
Demand Side ◽  
Demand And Supply ◽  
Heating Method ◽  
Urban Energy

Combined heat and power (CHP), an efficient heating method with cascades use of energy, accounts for approximately 50% of the heat sources in northern China. Many researchers have made significant efforts to improve its energy efficiency and environmental effects with important achievements. Given that the system produces heat and electricity at the same time, this study focuses on the role of CHP in the holistic urban energy system and points out the mismatch between the demand and supply sides of urban energy systems by using the heat-to-power ratio as a parameter. The calculation method and characteristics of the supply side heat-to-power ratio of eight heating methods and the maximum demand side heat-to-power ratio for 19 cities in northern China are displayed. After the analysis, it is concluded that (1) the maximum demand side heat-to-power ratio in the cities varies from 1.0 to 5.9, which is affected by the location and social, economic, and industrial structures. (2) In most of the cities, with the current energy structure, the demand side heat-to-power ratios are always larger than the supply side heat-to-power ratios. (3) The reduction in heating demand, surplus heat recovery, and the use of a highly efficient electric heating method, such as the heat pump, can help solve the mismatch of the heat-to-power ratio between the demand and supply sides. These conclusions can guide the urban energy planning and system construction.

After the Panic: Are Financial Crises Demand or Supply Shocks? Evidence from International Trade

2020 ◽  
Vol 2 (4) ◽  
pp. 509-526 ◽  
Author(s):  
Felipe Benguria ◽  
Alan M. Taylor
Keyword(s):  
Open Economy ◽  
Financial Crises ◽  
Aggregate Demand ◽  
Small Open Economy ◽  
Supply Side ◽  
Supply Shocks ◽  
Crisis Events ◽  
Empirical Tests ◽  
Negative Shock ◽  
Research And Policy

Are financial crises a negative shock to aggregate demand or supply? This is a fundamental question for research and policy making. Arguments for stimulus usually presume demand-side shortfalls; arguments for tax cuts or structural reform look to the supply side. Resolving the question requires models with both mechanisms, and empirical tests to tell them apart. We develop a small open economy model, where a country is subject to deleveraging shocks that impose binding credit constraints on households and/or firms. These financial crisis events leave distinct statistical signatures in the time series record that divide sharply between each type of shock. Empirical analysis reveals a clear picture: after financial crises the dominant pattern is that imports contract, exports hold steady or even rise, and the real exchange rate depreciates. History shows financial crises are predominantly a negative shock to demand. (JEL F14, F31, F41, G01, N10, N20, N70)

Liquidity constraints, international trade, and optimal monetary policy

2017 ◽  
Vol 20 (2) ◽  
Author(s):  
Wai-Ming Ho
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
Capital Requirements ◽  
Capital Inflows ◽  
Working Capital ◽  
Tax Rate ◽  
Friedman Rule ◽  
Domestic Credit ◽  
International Borrowing ◽  
The Government

AbstractThe availability of liquidity matters for an economy’s production and trade as firms need working capital to finance their operations. This paper studies the interaction between trade and capital flows operating through the liquidity allocations in the financial markets using a small-open-economy, overlapping-generations model. Working capital requirements distort the intratemporal consumption allocations. International capital inflows help easing liquidity in the domestic credit market, facilitating trade and improving the intratemporal allocation, while distorting the intertemporal allocation of the economy. We show how the government can use the Friedman rule and differentiated consumption taxes to address the tradeoff between the intratemporal and intertemporal distortions and achieve the second best optimum. Imposing a higher tax rate on imports can reduce the international borrowing to imports ratio and enhance the efficiency in using capital inflows to facilitate trade flows.

scholarly journals TECHNOLOGY SHOCKS AND BUSINESS CYCLES IN INDIA

2017 ◽  
Vol 23 (5) ◽  
pp. 1721-1756 ◽  
Author(s):  
Shesadri Banerjee ◽  
Parantap Basu
Keyword(s):  
Interest Rate ◽  
Open Economy ◽  
Emerging Market ◽  
Small Open Economy ◽  
Annual Data ◽  
Technology Shocks ◽  
Demand Side ◽  
Aggregate Fluctuations ◽  
Dsge Model ◽  
Dynamic Stochastic

In this paper, we develop a small open economy New Keynesian dynamic stochastic general equilibrium (DSGE) model to understand the relative importance of two key technology shocks, Hicks neutral total factor productivity (TFP) shock and investment specific technology (IST) shock for an emerging market economy like India. In addition to these two shocks, our model includes three demand side shocks such as fiscal spending, home interest rate, and foreign interest rate. Using a Bayesian approach, we estimate our DSGE model with Indian annual data for key macroeconomic variables over the period of 1971–2010, and for subsamples of pre-liberalization (1971–1990) and post-liberalization (1991–2010) periods. Our study reveals three main results. First, output correlates positively with TFP, but negatively with IST. Second, TFP and IST shocks are the first and the second most important contributors to aggregate fluctuations in India. In contrast, the demand side disturbances play a limited role. Third, although TFP plays a major role in determining aggregate fluctuations, its importance vis-à-vis IST has declined during the post liberalization era. We find that structural shifts of nominal friction and relative home bias for consumption to investment in the post-liberalization period can account for the rising importance of the IST shocks in India.

scholarly journals Tax Competition and Asymmetric Countries

Ekonomika ◽  
2004 ◽  
Vol 68 ◽  
Author(s):  
Anton Jevcak
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
National Income ◽  
Tax Rates ◽  
Tax Rate ◽  
Eu Member States ◽  
Public Inputs ◽  
Tax Harmonisation ◽  
Capital Tax ◽  
The Government

This paper explores the consequences of a difference in the levels of public inputs accumulated over time in a small open economy model where capital tax revenues are used exclusively for the provision of public inputs, while the government sets the capital tax rate in way to maximise its country’s national income. It is shown that in this case the optimal capital tax rate in a country is a decreasing function of its stock of accumulated public inputs. The model thus implies that capital tax harmonisation could actually be detrimental to the so-called core EU member states as it could fix their capital tax rates at an in-optimally high levels and thus hinder their ability to dampen undesirable capital out- flows.

scholarly journals Sustainability of the usable solid waste market in Bogota (Colombia)

2021 ◽  
Vol 13 ◽  
Author(s):  
María del Pilar Sánchez Muñoz ◽  
Johan Manuel Redondo ◽  
José Gabriel Cruz Cerón ◽  
Danny Ibarra-Vega ◽  
Abel Del Rio Cortina ◽  
...  
Keyword(s):  
System Dynamics ◽  
Solid Waste ◽  
Negative Feedback ◽  
Free Market ◽  
National Policy ◽  
Supply Side ◽  
Complex Behavior ◽  
Demand Side ◽  
Demand And Supply ◽  
District Policy

Abstract This document shows a model that seeks the sustainability of the Usable Solid Waste (USW) market in Bogotá, based on System Dynamics (SD), in order to understand the complex behavior of the phenomena that should be presented in this city market in the context of sustainability. Dynamic hypothesis suggests that two negative feedback structures exits, one that represents demand and another that represents supply and that interact under the assumption of free market with government intervention. Different strategies were modeled on both the demand side and the supply side to manage the system. As conclusion, the linear way in which the USW market currently develops is not adequate. It is necessary to institutionalize the market using the price so that it contributes to its sustainability and that both demand and supply are encouraged at the same time. Besides, district policy oriented to supply must be in accordance with the national policy that encourages demand to use more USW. Likewise, the internalization by all the actors of the market and applicability of the norm is required. The creation of public-private partnerships is required for the development of innovative projects in this area.

Problems and Holistic Solutions for Agricultural Businesses in Chiang Mai

2019 ◽  
Vol 2 (1) ◽  
pp. 1-8
Author(s):  
Pakorn Udomthanasarnsakul ◽  
Tidarat Cholprasertsuk ◽  
Panomporn Chalermwan
Keyword(s):  
Language Skills ◽  
Educational Institutions ◽  
Supply Side ◽  
Demand Side ◽  
Chiang Mai ◽  
Demand And Supply ◽  
Industry Group ◽  
The Government ◽  
Integration Problems ◽  
Production Problems

This research aims to study the problems and find solutions of major agro-industries in Chiang Mai, Thailand. The sample was divided into two parts: The supply side was the government agency, educational institutions and civil society. Demand side was Agro-Industry entrepreneurs. The methodology was focus on meeting the stakeholder debate, and group workshop, the first step of the research was selected the potential agro-industry group to study then in the operating phase, the survey was conducted to analyze and synthesize the problems of agro-industry and find solutions by group meetings in order to present a holistic problem-solving model. This process will provide opportunity for stakeholders and related agencies to collaborate and propose appropriate guidelines for action. The results show that, within demand side, the three most important issues are labor issues, marketing and production problems respectively. While the supply side, the top three issues are the integration problems, lacking of language skills / expertise, and lacking of database. Based on the analysis of both demand and supply side, there is a lack of concrete cooperation from relevant agencies, especially in policy cooperation. Therefore, a policy that responds to the problems of agro-industry is essential for all agencies to focus on and implement concrete measures to address sustainable issues.

Sign in / Sign up

Export Citation Format

Share Document