scholarly journals ENDOGENOUS TIME PREFERENCE AND PUBLIC POLICY: GROWTH AND FISCAL IMPLICATIONS

2010 ◽  
Vol 14 (S2) ◽  
pp. 243-257 ◽  
Author(s):  
Evangelos V. Dioikitopoulos ◽  
Sarantis Kalyvitis
Keyword(s):  
Public Policy ◽  
Fiscal Policy ◽  
Time Preference ◽  
Competitive Equilibrium ◽  
Capital Intensity ◽  
Public Capital ◽  
Policy Implications ◽  
Government Size ◽  
Endogenous Time Preference ◽  
The Government

This paper studies the growth and fiscal policy implications of the assumption that public policy generates an externality in the individual rate of time preference through the aggregate public capital stock. We examine the competitive equilibrium properties and we solve for endogenous growth–maximizing fiscal policy. We investigate the behavior of the government size and the growth rate to the sensitivity of time preference to public capital and the magnitude of public capital externality on production. We find that the Barro taxation rule [Barro, Robert J., Journal of Political Economy 98 (1990), 103–125], which states that the elasticity of public capital in the production function should equal the government size, is suboptimal. We show that the government does not necessarily have to increase income taxation following a rise in public capital intensity because of the externality of public capital on time preference and, in turn, on growth and the tax base of the economy.

Public Capital and Innovation

2012 ◽  
Author(s):  
Pierre-Richard Agénor
Keyword(s):  
Public Policy ◽  
Public Capital ◽  
Spillover Effects ◽  
Critical Issue ◽  
Government Interventions ◽  
Trade Offs ◽  
Different Types ◽  
Innovation Capacity ◽  
The Government ◽  
The Impact

This chapter extends the Allais–Samuelson Overlapping Generations models presented in chapters 1 and 2 to study interactions between infrastructure and human capital with R&D activities and growth. It begins by providing some background evidence on these interactions. The model is then presented and solved, and the impact of public policy, including potential trade-offs associated with the provision of infrastructure and other services by the government, is discussed. Again, this is a critical issue; if governments have access to limited resources to cover their expenditure, different types of government interventions may entail (temporary or permanent) trade-offs at the macroeconomic level—even though at the microeconomic or sectoral level these interventions are largely complementary. In addition, different types of government intervention may generate spillover effects on other sectors, which may have an indirect impact on innovation capacity.

scholarly journals CAN THE CREDIBLE FISCAL POLICY MITIGATE THE TERMS OF TRADE FLUCTUATION?

2017 ◽  
Vol 1 (3) ◽  
pp. 242-257
Author(s):  
Haryo Kuncoro
Keyword(s):  
Fiscal Policy ◽  
Positive Impact ◽  
International Market ◽  
Terms Of Trade ◽  
Government Size ◽  
Fiscal Policies ◽  
Quarterly Data ◽  
Discretionary Fiscal Policy ◽  
Policy Credibility ◽  
The Government

This paper examines the links between fiscal policy and terms-of-trade movement in the case of Indonesia over the period 2001-13. Unlike other researchers, this paper explores both the rules-based and discretionary fiscal policies. The earlier factor covers deficit rule and debt rule which are intended to measure the fiscal policy credibility. The later follows Fatás and Mihov (2003; 2006). The OLS estimation of quarterly data reveals that the less credible deficit rule policy and discretionary fiscal policy have a positive impact on the terms of trade. In contrast, the more credible debt rule policy and government size tend to depreciate the terms of trade. Those findings suggest that fiscal policy credibility does not matter in the context of international market. Furthermore, to mitigate the external risks, the government intervention to the international market debt should be limited.

scholarly journals Optimal Fiscal Policy with Endogenous Time Preference

2015 ◽  
Vol 17 (6) ◽  
pp. 848-873 ◽  
Author(s):  
EVANGELOS V. DIOIKITOPOULOS ◽  
SARANTIS KALYVITIS
Keyword(s):  
Fiscal Policy ◽  
Time Preference ◽  
Endogenous Time Preference ◽  
Optimal Fiscal Policy

scholarly journals Impacts of Louisiana Public Policy on Employment: An Econometric Analysis

2019 ◽  
Vol 6 (9) ◽  
pp. 129-142
Author(s):  
Russell M. Frazier
Keyword(s):  
Public Policy ◽  
Economic Development ◽  
Public Administration ◽  
Employment Growth ◽  
Policy Formation ◽  
Policy Implications ◽  
Food Services ◽  
Standards Of Living ◽  
State Economy ◽  
The Government

Employment plays a key role in the growth and development of any state economy, particularly given its potential to affect the standards of living for the population, as well as the revenues and expenditure of the government itself. A disaggregated evaluation of employment growth enables stakeholders to engage public policy formation in a more effective and efficacious manner. Therefore, the primary goal of this paper is to analyze employment growth trends and policy implications relative to the economic development of Louisiana’s industries at the sector level, by employing a rigorous shift-share analysis. The research employs data for twelve years from 2005 to 2017 to answer the guiding questions of this applied empirical research. Results show that comparative advantages are seen in the following areas: Finance and Insurance; Real Estate and Rental and Leasing; Administrative and Waste Services; Educational Services; Accommodation and Food Services; and Other Services (except for Public Administration). Thus, program initiatives directed at those sectors, with sufficient infrastructure, would enhance the economic development of Louisiana. It is plausible to believe that improved economic growth would draw new investors to Louisiana.

EFFECT OF DIGITAL COMMUNITY TOWARDS DEMOCRACY PROCESS: DIGITAL PARTISIPATION ANALYSIS IN INDONESIA

2020 ◽  
Vol 15 (2) ◽  
Author(s):  
Alih Aji Nugroho
Keyword(s):  
Public Policy ◽  
Social Media ◽  
Political Participation ◽  
Public Space ◽  
Rapid Development ◽  
Critical Mass ◽  
Digital Society ◽  
Digital World ◽  
Digital Community ◽  
The Government

The world is entering a new phase of the digital era, including Indonesia. The unification of the real world and cyberspace is a sign, where the conditions of both can influence each other (Hyung Jun, 2018). The patterns of behavior and public relations in the virtual universe gave rise to new social interactions called the Digital Society. One part of Global Megatrends has also influenced public policy in Indonesia in recent years. Critical mass previously carried out conventionally is now a virtual movement. War of hashtags, petitions, and digital community comments are new tools and strategies for influencing policy. This paper attempts to analyze the extent of digital society's influence on public policy in Indonesia. As well as what public policy models are needed. Methodology used in this analysis is qualitative descriptive. Data collection through literature studies by critical mass digital recognition in Indonesia and trying to find a relationship between political participation through social media and democracy. By processing the pro and contra views regarding the selection of social media as a level of participation, this paper finds that there are overlapping interests that have the potential to distort the articulation of freedom of opinion and participation. - which is characteristic of a democratic state. The result is the rapid development of digital society which greatly influences the public policy process. Digital society imagines being able to participate formally in influencing policy in Indonesia. The democracy that developed in the digital society is cyberdemocracy. Public space in the digital world must be guaranteed security and its impact on the policies that will be determined. The recommendation given to the government is that a cyber data analyst is needed to oversee the issues that are developing in the digital world. Regulations related to the security of digital public spaces must be maximized. The government maximizes cooperation with related stakeholders.Keywords: Digital Society; Democracy; Public policy; Political Participation

Book Reviews

2006 ◽  
Vol 56 (4) ◽  
pp. 455-468
Author(s):  
Zoltán Ádám ◽  
László Csaba ◽  
András Bakács ◽  
Zoltán Pogátsa
Keyword(s):  
Developing Countries ◽  
Fiscal Policy ◽  
Monetary Union ◽  
Economic And Monetary Union ◽  
European Studies ◽  
Eu Accession ◽  
East European ◽  
The World ◽  
The Government

István Csillag - Péter Mihályi: Kettős kötés: A stabilizáció és a reformok 18 hónapja [Double Bandage: The 18 Months of Stabilisation and Reforms] (Budapest: Globális Tudás Alapítvány, 2006, 144 pp.) Reviewed by Zoltán Ádám; Marco Buti - Daniele Franco: Fiscal Policy in Economic and Monetary Union. Theory, Evidence and Institutions (Cheltenham/UK - Northampton/MA/USA: Edward Elgar Publishing Co., 2005, 320 pp.) Reviewed by László Csaba; Piotr Jaworski - Tomasz Mickiewicz (eds): Polish EU Accession in Comparative Perspective: Macroeconomics, Finance and the Government (School of Slavonic and East European Studies, University College of London, 2006, 171 pp.) Reviewed by András Bakács; Is FDI Based R&D Really Growing in Developing Countries? The World Investment Report 2005. Reviewed by Zoltán Pogátsa

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