Budget Deficits, Inflation Accounting, and Macroeconomic Policy: A Skeptical Note

1988 ◽  
Vol 8 (1) ◽  
pp. 49-60 ◽  
Author(s):  
Thanos Catsambas
Keyword(s):  
Public Sector ◽  
Behavioral Responses ◽  
Budget Deficits ◽  
New Approach ◽  
Balance Sheets ◽  
Measurement Issues ◽  
Inflation Accounting ◽  
Private Spending ◽  
Interest Payments ◽  
Theoretical Considerations

ABSTRACTThis paper challenges the mechanical application of inflation accounting to public sector deficits as it has been suggested in recent years. Although the theoretical considerations underlying the proposed adjustment for the inflation premium of interest payments are well taken, the new approach has fundamentally focused on measurement issues with little attention paid to the behavioral aspects of microeconomic adjustment. This paper, therefore, raises skepticism about the usefulness of inflation accounting, if such a correction is not accompanied by a conceptual model that links behavioral responses of individuals to balance sheets and other stock variables. In a departure from previous investigations, the paper also points out the possibility that inflation accounting might have more relevant implications for public, rather than private, spending.

Probabilistic Optimal Design Using Successive Surrogate Probability Density Functions

1990 ◽  
Author(s):  
R. J. Eggert ◽  
R. W. Mayne
Keyword(s):  
Probability Density ◽  
Optimization Method ◽  
Probability Density Functions ◽  
Density Functions ◽  
Matching Method ◽  
Design Constraint ◽  
New Approach ◽  
Function Formulation ◽  
The Moment ◽  
Theoretical Considerations

Abstract Probabilistic optimization using the moment matching method and the simulation optimization method are discussed and compared to conventional deterministic optimization. A new approach based on successively approximating probability density functions, using recursive quadratic programming for the optimization process, is described. This approach incorporates the speed and robustness of analytical probability density functions and improves accuracy by considering simulation results. Theoretical considerations and an example problem illustrate the features of the approach. The paper closes with a discussion of an objective function formulation which includes the expected cost of design constraint failure.

The relationship between risk, capital and efficiency in Indian banking: Does ownership matter?

2019 ◽  
Vol 11 (2) ◽  
pp. 218-231
Author(s):  
Sanjukta Sarkar ◽  
Rudra Sensarma ◽  
Dipasha Sharma
Keyword(s):  
Public Sector ◽  
Credit Risk ◽  
Large Data ◽  
Foreign Banks ◽  
Risk Capital ◽  
Lower Efficiency ◽  
Data Set ◽  
Content Type ◽  
Balance Sheets ◽  
Indian Banks

Purpose This paper aims to examine the interplay between risk, capital and efficiency of Indian banks and study how their relationship differs across different ownership types. Design/methodology/approach Panel regression techniques are used to analyze a large data set of all Indian scheduled commercial banks operating during the period 2008-2016. Findings The results show that lower efficiency is associated with higher credit risk in the case of public sector and old private sector banks (”bad management hypothesis”). However, higher efficiency leads to higher credit risk in the case of foreign banks (“cost skimping hypothesis”). The authors further find that the more efficient institutions among public sector hold more capital. Finally, they find that the better-capitalized banks among those in the public sector have lower risks on their balance sheets (“moral hazard hypothesis”). Originality/value There is a paucity of papers on the interplay between risk, capital and efficiency of banks in emerging economies. This paper is the first to study the inter-relationship between risk, capital and efficiency of Indian banks across ownership groups using a number of different measures of risk.

scholarly journals Work Process of Bring Your Own Device to Support Green Computing

2018 ◽  
Vol 11 (1) ◽  
pp. 137
Author(s):  
Mohd Yusri Jusoh ◽  
Haryani Haron ◽  
Jasber Kaur
Keyword(s):  
Public Sector ◽  
Green Computing ◽  
Bring Your Own Device ◽  
End User ◽  
Work Process ◽  
New Approach ◽  
Work Activities ◽  
Portfolio Development ◽  
Role Of It

Bring Your Own Device (BYOD) is a new approach to optimize the use of Information Technology (IT) devices to carry out their work task. The study of BYOD is focused on work activities that perform by IT worker using IT device in public sector. Work activities can provide important insights into IT device portfolio development, end-user segmentation process and the role of IT workers in public sector. The propose of this study is to explore work process of bringing your own devices to support green computing. A conceptual framework of BYOD work process in public sector through integration of IT devices and end-user segmentation to support green computing was developed based on systematic literature review to highlight the implementation of BYOD. This framework considers that work activities based on IT worker, IT device portfolio and end-user segmentation are the main key for public sector to support green computing. This framework is an initial research for researchers and practitioners to further examine BYOD practices in public sector. In addition, to highlight an important gap, this paper explains how different work activities using different IT device influence the IT worker to select the suitable IT device for BYOD that support green computing.

scholarly journals Measuring and Analysing the Financial Performance of State-Owned Economic Entities

2021 ◽  
Vol 66 (Special edition 2021/2) ◽  
pp. 31-51
Author(s):  
Krisztina Kistóth
Keyword(s):  
Public Sector ◽  
Financial Performance ◽  
Financial Indicators ◽  
Public Companies ◽  
Homogeneous Groups ◽  
Measurement Issues ◽  
State Audit ◽  
Adjusted Indicators ◽  
Public Money ◽  
And Performance

The experts of the State Audit Office of Hungary analysed financial performance measurement issues of state-owned companies (public companies) with the aim to apply the principle of performance as widely as possible during public money spending. In many respects, the same tools can be used to measure and analyze the performance of these companies as for private sector companies, however misrepresentations arising from public sector specialties must be filtered out. Therefore, an adjusted version of the financial indicators has been prepared, using corrective items specifically focusing public sector specificities. To test the adjusted indicators, we prepared an analysis for a group of 148 public companies, the main findings of which are presented in our article. The special conditions, operation or risks of state-owned companies may require different tools and priorities in terms of ownership control. In this article, we try to form relatively homogeneous groups, portfolios - based on adjusted financial indicators- which helps the owner to treat groups of companies differently according to financial capabilities and performance. Classification into groups can draw attention to critical management factors, risks, but also strengths as well. In this way, the development of portfolios can provide a good basis for effective ownership management of companies.

A Comparative Study of the Central Administration Budget Preparation Process in Turkey and Sweden

2017 ◽  
pp. 1-14
Author(s):  
Fatma Turna ◽  
Nihan Kurtulmaz ◽  
Burak Kozali
Keyword(s):  
Public Sector ◽  
Comparative Study ◽  
Budget Deficit ◽  
Budget Process ◽  
Preparation Process ◽  
Budget Deficits ◽  
Central Administration ◽  
The Government ◽  
Budget Surplus

Sweden was one of the countries among the OECD states yielding maximum budget surplus at the end of 1980s and became one of the countries yielding maximum budget deficits in the first years of the 1990s. The budget deficit almost doubled in five years. During that period, the government decided the most important reason of the budget deficits was the budget process itself and commenced studies to reform the budget process and enhance its consistency and reliability. Basic steps were taken to grant budget surplus for whole public sector, to set an allowance cap for whole public sector and create equivalent budget structure for all municipalities and a series of studies were conducted. In this study, the stage of the budget preparation process in Turkey and Sweden will be reviewed and compared to the budget preparation process in Sweden with the budget preparation process in Turkey.

Fiscal Policy Under Labour

2010 ◽  
Vol 212 ◽  
pp. R34-R48 ◽  
Author(s):  
Alan Budd
Keyword(s):  
Fiscal Policy ◽  
Financial Crisis ◽  
Previous Experience ◽  
Fiscal Rules ◽  
Budget Deficits ◽  
Labour Government ◽  
New Approach ◽  
Preceding Period ◽  
The Uk

The incoming Labour Government of 1997 promised a new approach to the conduct of fiscal policy. Two lessons to be learnt from previous experience were: (1) adjust for the cycle and build in a margin for uncertainty; (2) set stable fiscal rules and explain clearly fiscal policy. Although the claims for novelty were exaggerated there was a serious attempt to expand the supporting explanatory material at the time of the Budget and the Pre-Budget Report (which was itself an innovation). It started well, with the most significant tightening of fiscal policy occurring in 1997–8; but it ended with a record postwar deficit, a debt/GDP ratio heading for more than 75 per cent of GDP and the suspension of the fiscal rules. While the Treasury was not alone in failing to forecast the financial crisis and its consequences, doubts about the policy were being raised before 2007. Although the fiscal rules were met over the preceding period and projected to be met in future, a succession of current budget deficits and a tendency, from 2001 onwards, for over-optimism in fiscal projections left the UK less well equipped than it might have been to meet the challenges of the crisis.

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