Discretionary transfers in Indian federal finance: a panel data analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chittaranjan Nayak ◽  
Priyabrata Satpathy
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
The Political ◽  
Indian States ◽  
Data Set ◽  
Content Type ◽  
Economic Determinants ◽  
Fiscal Transfers ◽  
Political Economic

Purpose Despite existence of a constitutional demarcation of functions and finances between the centre and the states, it is alleged that the centre-state funds transfer systems in India have a political bargaining aspect that goes beyond the normative considerations. This paper makes an attempt to investigate if the political system allows to evolve a simple, equitable, objective and rule-based system of transfers. The aim of this paper is to explore the political economic determinants of discretionary fiscal transfers in India. Design/methodology/approach This paper is based on a panel data set of 28 Indian states for the period 2001–2014. After diagnostic checking for fixed effects/random effects, the authors prefer to use fixed effects regression with Driscoll–Kraay standard errors and Arellano–Bover/Blundel and Bond system estimation model that uses moment conditions in which lagged first differences of the dependent variable are instruments for the level equation. Findings The findings of this study reveal that fiscal performance, economic capacity and political alliance are significant but some other political determinants such as bargaining power and election years are not significant in influencing discretionary transfers. Originality/value Considering the limited availability of literature on federal finance, the present paper is an addition to the existing research, especially on a crucial issue concerning extra-constitutional fiscal transfers in India. Analysing a balanced panel comprising all the Indian states and examining the role of various political-economic determinants makes this paper topical.

scholarly journals Political Economy of Discretionary Transfers: A Dynamic Panel Data analysis of Indian States

2018 ◽  
Vol 5 (01) ◽  
Author(s):  
Chittaranjan Nayak ◽  
. PriyabrataSatpathy
Keyword(s):  
Political Economy ◽  
Panel Data ◽  
Fiscal Federalism ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Intergovernmental Transfers ◽  
Estimation Model ◽  
Indian States ◽  
Data Set ◽  
National Governments

Intergovernmental transfers are a major instrument to ensure smooth functioning of ‘Fiscal federalism’ in India. But the mechanism of Central transfers in India seems to be confusing and overlapping. Although a formula-based practice has been mandated by the Indian Constitution, there are several breaks in the practice. While predetermined formulas are used for some transfers, there is considerable discretion in allocating other classes of transfers. This paper makes an attempt to focus on the determinants that influence the quantum of discretionary transfer to sub-national governments from a political economy perspective. Taking a panel data set of 28 states for the period 2001 to 2011, and by using Arrellana-Bover (1995)/ Blundell-Bond (1998) system estimation model, the paper observes that the chosen variables do explain disparity in Central fund disbursement under non formulaic discretionary head in a robust way. The study has analysed the results separately for SCS and NSCS and in combine. The findings of the study reveal that the chosen variables have different outcomes for SCS and NSCS. However, when SCS and NSCS states are combined, the variables like fiscal capacity, fiscal performance and coalition status are found to be significant.

What do European stock markets prefer? Left or right governments?

2015 ◽  
Vol 41 (10) ◽  
pp. 1096-1111
Author(s):  
Andreea Stoian ◽  
Delia Tatu-Cornea
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Fixed Effects ◽  
Large Body ◽  
The Political ◽  
Right Wing ◽  
Left Wing ◽  
Data Set ◽  
Content Type ◽  
European Stock Markets

Purpose – The purpose of this paper is to examine the influence of the political partisanship of government in charges of returns on the European stock markets. The authors found a large body of research investigating this issue for the case of US stock market but less evidence for the European stock markets. Design/methodology/approach – The authors employ a panel data model with fixed-effects and an additional dynamic panel model using the bias-corrected LSDV estimator on a data set consisting of monthly and quarterly data. The data range from 2000 to 2010 and cover 20 European Union (EU) countries. The authors test several hypotheses, and run distinct regressions using political, financial, and economic variables. The authors also divide the data set into two sub-samples in order to reveal the distinctions between advanced and emerging economies in the EU. Findings – The authors find that stock markets perform better under right-wing administrations. The result is consistent for the advanced EU economies, but the authors found no robust evidence in that sense for emerging countries. Additionally, the authors show that European stock market preferences for right/left-wing administrations is not necessarily related to the beliefs about the size of unemployment, inflation, deficit, and/or debt, which opens the field for further research in this area. Originality/value – The study contributes to existing knowledge. It examines if Wall Street folklore, asserting for many decades that stock markets perform better under right-wing governments, also holds for European stock markets given the distinctions in the political and financial systems between USA and Europe. Moreover, the authors underline the introduction in the analysis of the Central and Eastern European countries.

scholarly journals Media and Economic Growth: Country Groups Difference via Panel Data

2020 ◽  
Vol 5 (5) ◽  
Author(s):  
Viktoriia Ahapova
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Press Freedom ◽  
Foreign Direct Investments ◽  
Fixed Effects Model ◽  
Data Set ◽  
The Press ◽  
Per Capita

The present article investigates the link between economic growth, namely GDP per capita, and the media activity represented with the indicator of the press freedom alongside other factors such as infrastructure, institutional conditions, and foreign direct investments. A panel of 179 countries was used for the period from 2000 to 2015. In particular, we run two panel data analysis models, fixed effects and random effects models, and examined their output with Hausman’s specification test, which pointed the fixed effects model as more efficient for the presented data set. However due to the presence of serial correlation, heteroskedastic, and cross-panel dependence, a Prais-Winsten regression with panel corrected standard errors (PCSE) was implemented. The comparative analysis of models of four country groups, divided by GNI per capita, was conducted. Both statistically significant correlation coefficients and models’ output provided evidence of an association between economic growth and the press activity.

scholarly journals Alcohol Consumption and Liver Cirrhosis Mortality: New Evidence from a Panel Data Analysis for Sixteen European Countries

2011 ◽  
Vol 6 (1) ◽  
pp. 67-82 ◽  
Author(s):  
Jan Bentzen ◽  
Valdemar Smith
Keyword(s):  
Liver Cirrhosis ◽  
Panel Data ◽  
Alcohol Consumption ◽  
Fixed Effects ◽  
Close Association ◽  
Panel Data Analysis ◽  
Empirical Modeling ◽  
European Countries ◽  
Data Set ◽  
Cirrhosis Mortality

AbstractEmpirical evidence gives support to a close association between liver cirrhosis mortality and the intake of alcohol. The present analysis draws on a panel data set for sixteen European countries from 1970–2006 where both alcohol consumption and liver cirrhosis seem best described as trend-stationary variables. Consequently, a flexible non-linear functional form with country fixed effects including linear trends is applied in the analysis. It is argued that fewer restrictions on the relationship between liver cirrhosis mortality and alcohol consumption are appropriate for empirical modeling. The conclusion is that the total level of alcohol consumption as well as the specific beverages – beer, wine and spirits – contribute to liver cirrhosis mortality, but the present study also reveals that addressing the question of panel unit roots directly and in this case subsequently applying a trend-stationary modeling methodology reduces the estimates of the impacts from alcohol consumption to liver cirrhosis. Finally, more restrictive alcohol policies seem to have influenced the country-specific development in cirrhosis mortality positively. (JEL Classification: 110)

Data hiding the truth for the last few years: a panel data analysis of crimes against women

2019 ◽  
Vol 5 (2) ◽  
pp. 132-143
Author(s):  
Aarthee Ragunathan ◽  
Ezhilmaran Devarasan
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Violence Against Women ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Thomson Reuters ◽  
Crime Types ◽  
Crimes Against Women

PurposeThe offence against femininity has not only destroyed India’s development but also its future. When it comes down to the most important factor like sex, the social evils like “sati” and “dowry” that had been plaguing our country have been banned in India. India is the most dangerous nation in regard to sexual violence against women, according to the summary of the Thomson Reuters Foundation, 2018. The purpose of this paper is to determine the relationship between the total populations of women with other different types of women crime in all states in India.Design/methodology/approachThis paper will review existing panel data analysis literature and apply this knowledge in finding the highly occurred women crimes in India. Using R software the following models are analysed: pooled ordinary least squares, fixed effects models and random effects models for analysing the women crimes in India.FindingsIn this paper, the authors identify that the fixed effects model is more appropriate for the analysis of women crimes in India.Practical implicationsViolence against women is a social, economic, developmental, legal, educational, human rights and health issue. This paper can be used to find the importance of women crime types. Moreover, the police or legal department can take actions according to the crime types.Originality/valueThere is a lack of literature considering the crimes against women. This will help the society to understand women crime types because the only type of violence that has received much attention by the media is rape. But, through our panel data analysis, we conclude that kidnapping, abduction and dowry death are the most occurred crimes against women in India.

scholarly journals Climate change and food security in EAC region: a panel data analysis

2019 ◽  
Vol 4 (4) ◽  
pp. 270-284
Author(s):  
Walaa Mahrous
Keyword(s):  
Climate Change ◽  
Food Security ◽  
Data Analysis ◽  
Panel Data ◽  
Fixed Effects ◽  
Global Climate ◽  
Panel Data Analysis ◽  
Content Type ◽  
East African Community ◽  
The Impact

Purpose This study aims to analyze the impact of global climate change on food security in the East African Community (EAC) region, using panel data analysis for five countries, over 2000-2014. Design/methodology/approach The determinants of food security are expressed as a function of rainfall, temperature, land area under cereal production, and population size. The paper used pooled fixed effects to estimate the relationship among these variables. Findings Findings show that food security in EAC is adversely affected by temperature. However, precipitation and increasing areas cultivated with cereal crops will be beneficial to ensure everyone's food security. Originality/value Actions for mitigating global warming are important for EAC to consolidate the region’s economic, political and social development/stability.

Income convergence in India: evidence from nonparametric panel data

2017 ◽  
Vol 44 (3) ◽  
pp. 400-411 ◽  
Author(s):  
Arfat Ahmad Sofi ◽  
Raja Sethu Durai S.
Keyword(s):  
Panel Data ◽  
Capita Income ◽  
Fixed Effects ◽  
Income Convergence ◽  
Conditional Convergence ◽  
Indian States ◽  
Convergence Hypothesis ◽  
Content Type ◽  
Time Period ◽  
Per Capita

Purpose The purpose of this paper is to investigate convergence hypothesis in a balanced panel of 22 Indian states for the time period of 1980-81 to 2010-11 by applying nonparametric model setting in a panel framework. Design/methodology/approach The present study uses nonparametric and semi-parametric panel data methods to test the absolute and conditional convergence, respectively, and examines the income convergence using nonparametric panel data methods with state specific effects taken into consideration. These models are being estimated by the iterative process for a balanced panel of state wise per capita income and other conditioning variables for the time period of 1980-81 to 2010-11. For removing the fixed effects, the authors follow within transformation procedure according to the feasibility of the problem. Since convergence is estimated by regressing dependent variable on initial level of independent variable (as growth rate of income and per capita income in this case). So using usual transformation for removing the fixed effects is not feasible because by doing so the authors may end up with singular matrices on both sides of the regression model. Findings The results reject the null of parametric specification for both absolute as well as conditional convergence model. As to the outcome of the empirical analysis, the findings reveal that the Indian states are diverging in absolute sense and converging on conditional basis. Convergence happens to be consistent and conditional upon public expenditure, power generation share of primary and tertiary sector to Gross State Domestic Product. Originality/value The originality of the study is in its application of advanced methodology to highlight the model misspecifications while testing the convergence hypothesis in earlier literature.

Financial and other frauds in the United States: a panel analysis approach

2017 ◽  
Vol 25 (4) ◽  
pp. 413-433 ◽  
Author(s):  
Shuming Bai ◽  
Kai S. Koong
Keyword(s):  
Panel Data ◽  
Panel Data Analysis ◽  
The United States ◽  
Three Dimensions ◽  
Panel Analysis ◽  
Cross Sectional ◽  
Data Set ◽  
Sentinel Network ◽  
Content Type ◽  
The Usa

Purpose The purpose of this paper is to report on the findings and implications associated with the millions of financial and other fraud complaints that are reported to the Federal Trade Commission and published in the Consumer Sentinel Network Data Book each year since 2002. Based on the three dimensions, namely, the number of complaints, growth rates and geographic locations of those crimes, this study found similar as well as unique trends that are new and are critical for addressing the rise of cybercrimes in the USA. The trends and patterns identified may also have implications for addressing cybercrimes in other parts of the world. Design/methodology/approach This research is a cross-sectional time-series study that covers frauds and cybercrimes in the USA from 2002 to 2015. The observed cases included the number of total complaints, complaints categories and payment amount or loss incurred both at the national and state levels. First, aggregate fraud totals, categories, payments and payment methods were analyzed and ranked. Second, state data for fraud categories, payments and filing rate per capita were organized into panel data for analysis, comparison and ranking. This cross-sectional and longitudinal approach of the different dimensions of financial and other frauds generate new rankings and more robust results. Findings The key findings are related to the long-term occurrences and trends of financial and online frauds in the USA. While some general trends are consistent with prior studies, the cross-sectional and longitudinal panel analysis produced some unique results. States that reported the most complaints do not necessarily rank high when examined with their growth per capital or their rates of growth. Their rankings could change dramatically due to other factors. In addition, eight of the top ten crime categories are the same both at the national and state levels, indicating that law enforcement could target the same crime categories. Originality/value The panel data analysis is new (first attempt at using this technique on the data set) and robust because it allows cross-sectional and longitudinally analysis of the various financial and online fraud crimes, in aggregate and by state, for a more comprehensive and comparative examination of the fraud behavioral trends. This research can be viewed as an improvement over earlier studies because the panel analysis identifies what fraud trends, scam types and payment amount exist on the national and state levels. The rate of fraud growth in the respective states provides a better understanding about future development of this problem.

Board diversity and corporate social responsibility in Jordan

2016 ◽  
Vol 14 (2) ◽  
pp. 279-298 ◽  
Author(s):  
Abdul Hadi Ibrahim ◽  
Mustafa Mohd Hanefah
Keyword(s):  
Corporate Social Responsibility ◽  
Data Analysis ◽  
Panel Data ◽  
Social Responsibility ◽  
Panel Data Analysis ◽  
Arab Countries ◽  
Board Diversity ◽  
Content Type ◽  
Csr Disclosure ◽  
Corporate Social

Purpose This study aims to investigate the impact of board diversity characteristics, namely, independence, gender, age and nationality of directors on the level of corporate social responsibility (CSR) disclosures. Design/methodology/approach Content analysis was used to determine CSR disclosure. This study used panel data analysis to investigate the influence of board diversity characteristics on CSR disclosures. Findings Panel data analysis show that the level of CSR disclosure has increased over the period of study. Results also reveal a positive and significant association between the level of CSR disclosure and board diversity variables. Research limitations/implications This study examined only companies listed on Amman Stock Exchange. Therefore, the generalisation of the results might be limited to the listed companies only. Practical implications Findings are relevant to policymakers, professional organisations and practitioners in Jordan and in other Arab countries. Social implications The role of women in the boardroom is important to ensure more CSR activities by the listed companies. Jordan being a Muslim country should take the initiative to introduce laws to increase the number of women to the board. Originality/value This study offers significant contributions to existing CSR literature in Jordan and in other Arab countries by introducing female directors. Findings are important to policymakers. They should implement quotas for women in the boardroom, and adopting such a policy will increase the participation of women in the decision-making process of the companies and reduce gender bias.

Socio-economic determinants of employment in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in Jammu and Kashmir

2017 ◽  
Vol 44 (10) ◽  
pp. 1361-1376
Author(s):  
Malik Altaf Hussain
Keyword(s):  
Small Sample ◽  
Indian States ◽  
Jammu And Kashmir ◽  
Female Participation ◽  
Content Type ◽  
Economic Determinants ◽  
Mahatma Gandhi ◽  
Rural Employment ◽  
Employment Guarantee ◽  
Employment Guarantee Scheme

Purpose The purpose of this paper is to look at the socio-economic determinants of employment in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in Jammu and Kashmir (J&K) at both household and individual level. My results show that there is no discrimination in provision of employment to backward classes. Out of all the Indian States, J&K has lowest female participation in the scheme. My results show that women are discriminated against in provision of employment. Worksite facilities, like creche, can positively affect female participation in the scheme. Design/methodology/approach The author uses multi-variate OLS regression model to analyse the data collected through primary survey of three heterogenous villages of district Ganderbal of J&K. Findings The author finds clear evidence of discrimination against females in provision of employment along with slight evidence of elite capture of the scheme. The author also finds negative relationship between the number of children in a household and the number of workdays which highlights the importance of worksite facilities to increase female and overall participation for the scheme to be successful. Research limitations/implications The possible limitation could be small sample size but given that this is the first study of its kind in the J&K State, researchers can build up on it. Originality/value This is one of the first research papers which looks at the performance of MGNREGS in J&K in such detail. No comprehensive study of this magnitude and rigour has been undertaken in J&K till now.

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