Local Governments and Economic Freedom: A Test of the Leviathan Hypothesis

2019 ◽  
Vol 47 (3) ◽  
pp. 493-529
Author(s):  
Adam A. Millsap ◽  
Bradley K. Hobbs ◽  
Dean Stansel
Keyword(s):  
Government Spending ◽  
Local Governments ◽  
Economic Freedom ◽  
Local Level ◽  
Previous Literature ◽  
Ceteris Paribus ◽  
Metropolitan Statistical Areas ◽  
Mixed Support ◽  
The Government ◽  
Using Data

Brennan and Buchanan’s Leviathan hypothesis states that “potential for fiscal exploitation varies inversely with the number of competing governmental units” (p. 211) and that “total government intrusion into the economy should be smaller, ceteris paribus, the greater the extent to which taxes and expenditures are decentralized [and]…the smaller the jurisdictions” (p. 185). Using data for US metropolitan statistical areas, we provide the first local-level test of that hypothesis (that we are aware of) that uses “economic freedom” as the dependent variable, which provides a better measure of “total government intrusion into the economy” than the less comprehensive measures (taxes or spending) used in the previous literature. We find mixed support for the Leviathan hypothesis. The number of competing jurisdictions is positively associated with economic freedom, driven largely by the labor market freedom component as opposed to the government spending and tax components (the very measures used in the previous literature).

scholarly journals Health collapse in Manaus: the burden of not adhering to non-pharmacological measures to reduce the transmission of Covid-19

2021 ◽  
Vol 45 (131) ◽  
pp. 1126-1139
Author(s):  
Ivana Cristina de Holanda Cunha Barreto ◽  
Raimundo Valter Costa Filho ◽  
Ronaldo Fernandes Ramos ◽  
Luciana Gonzaga de Oliveira ◽  
Natália Regina Alves Vaz Martins ◽  
...  
Keyword(s):  
Health Services ◽  
Social Isolation ◽  
Local Governments ◽  
Judicial Decision ◽  
Social Distancing ◽  
Exponential Increase ◽  
Mass Immunization ◽  
The Government ◽  
Using Data ◽  
Demand For Health

ABSTRACT This article aims to compare the evolution of Covid-19 in Manaus and Fortaleza, two epicenters of the pandemic in 2020, analyzing legal measures by local governments and levels of social isolation. An algorithm was defined to calculate the Homestay Index (HSI), using data from the Google Mobility Report. We analyzed the decree’s timeline, the HSI evolution, the Covid-19 incidence and the number of deaths from March/2020 to January/2021. The population of Fortaleza was exposed to more consistent measures of social distancing than that of Manaus. Longer homestay was observed from March to May 2020 and Fortaleza achieved higher and more lasting levels. As of June 2020, the HSI fell, notably in Manaus, reaching levels below zero in late December. As an aggravating factor, the government decreed broad isolation in Manaus on December 23, 2020, but after protests it was repealed on December 26, 2020. A judicial decision determined the complete closure in Manaus on January 2nd 2021, but it was too late: the SUS collapsed with an exponential increase in deaths. In Fortaleza, the demand for health services was high, but under control. We consider that only the strict application of non-pharmacological measures and mass immunization can prevent further deaths.

scholarly journals Impact of the government size on economic growth in the Western Balkan countries

2022 ◽  
Vol 11 (1) ◽  
pp. 55-63
Author(s):  
Roberta Bajrami ◽  
Adelina Gashi ◽  
Kosovare Ukshini ◽  
Donat Rexha
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Economic Freedom ◽  
Ordinary Least Squares ◽  
Government Size ◽  
Gdp Growth ◽  
Government Consumption ◽  
Per Capita ◽  
The Government ◽  
The Impact

The Keynesian theory states that economic growth is positively affected by government spending, while Classical theory states that economic growth is negatively affected by government spending, as is stated by neoclassical public choice theorists (Nyasha & Odhiambo, 2019). Based on these theories, many authors have carried out research on the impact of economic freedom on economic growth by analyzing various empirical cases. Bergh and Karlsson (2010) with the findings from his paper confirmed that the countries with the highest government size have an elevated growth in the globalization index of KOF and the Fraser Institute’s economic freedom index. The main aim of this paper is to analyze the government size impact on the growth of the economy in the Western Balkan in the time period 2000–2017 according to Fraser Institute’s data, incorporating the following econometric models: fixed and random effects, pooled ordinary least squares (OLS), and Hausman-Taylor IV. With these models, this paper analyzes a government size and its components: government enterprises and investment, government consumption, transfers, and subsidies. The results illustrate a relationship between the size of the government and the growth of the economy in the Western Balkans that is positive. 1% increase in government size affects 0.29% gross domestic product (GDP) growth per capita. According to the Hausman-Taylor instrumental variable, 1% growth of government consumption is affected by 0.69% the decline in GDP per capita. The growth rate of transfers and subsidies affects 0.17% of GDP growth per capita and 1% of government enterprises and investment affects 0.54% GDP growth per capita.

Turns of Direct Democracy at the Local Level in Latvia

2022 ◽  
pp. 91-114
Author(s):  
Lilita Seimuskane ◽  
Maris Pukis
Keyword(s):  
Decision Making ◽  
Local Government ◽  
Citizen Participation ◽  
Local Governments ◽  
Direct Democracy ◽  
Local Level ◽  
National Government ◽  
Current Level ◽  
Study Participation ◽  
The Government

The chapter provides analysis of obstacles for the introduction of direct citizen participation in the decision-making process at the local self-governments in Latvia, as well as intents of national government to widen participative democracy by formalization of consultation mechanisms. Within the scope of this study, participation is seen as an interaction form of relationship between citizens and a local government. The highest form, according to Arnstein's gradation theory of a ladder of citizen participation, refers to the participation degree called partnership, delegated power, and is described by Teorell as a citizen voice in the government. Situation and perspective of local government referendums are analysed. Consultation is implemented at the level by involving the residents in the work of local government commissions and implementing public deliberations. Administrative territorial reform, performed by 2021 elections, will decrease the number of local governments to a third of their current level.

scholarly journals The The implementation of CSR in the extractive industries in Indonesia: What is the government’s role?

2020 ◽  
Vol 5 ◽  
pp. 161-169
Author(s):  
Anif Fatma Chawa
Keyword(s):  
Local Governments ◽  
Local Level ◽  
National Level ◽  
Extractive Industries ◽  
Systemic Review ◽  
Role Of Government ◽  
Social Agent ◽  
Functional Perspective ◽  
The Government ◽  
Negative Impacts

This article aims to illustrate the role of government in the implementation of CSR in the extractive industries. The extractive industries need support from the government to resolve various problems which have emerged in conducting their CSR. These problems have arisen because of the contradiction and tension in the role or framework of business communities of the extractive industries, as an economic and social agent. To address those problems, based on a structural functional perspective, the extractive industries need other institution primarily government to establish policies or regulations in conducting their CSR. This study employs systemic review method reviewing 70 journal articles of research studies which focus on the implementation of CSR in the extractive industries in Indonesia. This study found that government has an important role to stipulate several regulations mostly at a national level. The regulations require the extractive industries to implement CSR to specifically address various negative impacts, socially, culturally and environmentally, on the affected communities. This study, however, also found that there is insufficient guideline at a local level in relation to CSR. Consequently, the extractive industries have no guidelines in how to establish their CSR activities, to what extend they should involve the local communities as well as the local governments in these activities and to address various problems which have emerged in the implementation of CSR. The lack of guidelines has also given rise to the different perception of the local governments on how they should be involved in the implementation of CSR.

scholarly journals MODEL KAUSALITAS DAN GUNCANGAN BELANJA PEMERINTAH TERHADAP PRODUK DOMESTIK BRUTO DI INDONESIA

2018 ◽  
Vol 11 (2) ◽  
pp. 75-100
Author(s):  
Edy Sutriono
Keyword(s):  
Government Spending ◽  
Capital Expenditure ◽  
Social Assistance ◽  
Economic Education ◽  
The State ◽  
State Budget ◽  
Role Of Government ◽  
First Semester ◽  
The Government ◽  
Using Data

This research was conducted in the first semester of 2018 aimed at determining whether there is a causal and respond relationship between government spending and GDP using data from 2005 to 2017. The method used is Granger Causality and Vector Autoregression. The results of the study state that employee spending, goods expenditure, economic and tourism functions and culture influence reciprocal GDP, while capital expenditure, social assistance, education and health functions only influence GDP. Employee spending shocks, social assistance, health functions have no significant effect and are responded to by GDP, while shocks to goods, capital, economic, education, tourism and cultural spending are very influential and are responded to by GDP. The implication for the government is in compiling the next fiscal measures and policies in allocating expenditure in the APBN to increase the role of government spending to be able to increase gross domestic product and the national economy. For the general public, as the mandate of the State Budget, it can better know the direction and impact of the State Budget on the economy.

scholarly journals CONDITIONS AND FACTORS OF EFFECTIVE USE OF LOCAL BUDGET FUNDS DURING THE REFORM OF FINANCIAL DECENTRALIZATION

2021 ◽  
Author(s):  
Liudmyla Denishchenko
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Local Level ◽  
Significant Degree ◽  
Job Responsibilities ◽  
First Results ◽  
The Government ◽  
Local Budget ◽  
Decentralization Reform ◽  
Effective Use

The implementation of the financial decentralization reform in Ukraine, which is the most important component of the general reform of local self-government in Ukraine for seven years, already has the first results and materials for research and conclusions. The state has proposed stages of reform and further activities of local governments. The government ensures the declared national expenditures delegated to local councils and recognizes the significant degree of their independence in planning, creating and implementing their budget plans. However, at the local level there are a number of problems that lead to inefficiency or inexpediency of costly financial activities. The article considers the most significant, effective and universal conditions and factors for improving the efficiency of spending financial resources of local budgets in the implementation of local government reform in Ukraine. The reasons for the need to implement the reform of financial decentralization and the problems it should solve are presented. Among the described bases of increase of efficiency of use of means – legislative, organizational, resource. Their definition was made possible by studying the results of community spending management during the first years of the reform. Most of them have an organizational character, i.e. one that is possible for the community to implement as a cohesive social body at the local level, have a low level of costs or opportunities for external financing or co-financing. Factors of its implementation, author’s comments and evaluation of efficiency are provided to each defined condition. The most important among the basics of effective spending of local budgets are: the availability of necessary and quality legislation, preparation and use of motivated staff of local governments, creation and implementation of social dialogue in the community, comprehensive control and analysis of public spending, determining responsibility for job responsibilities relevant employees, use of foreign experience and best financial practices of Ukrainian communities, use of energy-saving technologies, optimization of local government maintenance costs. Each of the presented bases has the described factors of their implementation which are described in article. The use of such factors makes it possible to use the available on a possible basis the effectiveness of the use of local funds, an important component of the community’s own resources during the reform of local self-government.

scholarly journals Voice and Votes—Does Political Decentralisation Work for the Poor and for Women? Empirical Evidence from the 2005 Local Government Elections in Pakistan

2006 ◽  
Vol 45 (4II) ◽  
pp. 1345-1360
Author(s):  
Regina Birner ◽  
Sarfraz Khan Qureshi ◽  
Kamiljon Akramov ◽  
Bilal Hassan Khan
Keyword(s):  
Affirmative Action ◽  
Empirical Evidence ◽  
Local Governments ◽  
Local Level ◽  
Power Structures ◽  
Indian States ◽  
Positive Effects ◽  
Disadvantaged Groups ◽  
The Poor ◽  
The Government

Decentralisation is associated with the hope that “bringing government closer to the people” will improve the provision of public services by increasing people’s voice in decision-making, and by making the government more accountable to them. Decentralisation is also associated with the hope that disadvantaged groups of society, including the poor and women, will have better possibilities to exercise voice at the local level. Some countries have combined decentralisation with affirmative action, for example, by reserving seats in local councils for women and other disadvantaged groups. Yet the empirical evidence regarding the impacts of decentralisation has been mixed [Bardhan (2002); von Braun and Grote (2002); Jütting, et al. (2004); Steiner (2005)]. In many cases, political decentralisation has not been associated with fiscal and administrative decentralisation, thus limiting the scope of what local governments can actually do. Building capacity at the local level and overcoming coordination problems has been another challenge. Local elite capture has been identified as a major problem that can prevent positive effects of decentralisation for the poor, especially in societies with hierarchical power structures at the local level [Bardhan (2002)]. With regard to gender, there are concerns that decentralisation—even if associated with affirmative action—will not be sufficient to overcome gender-based discrimination. Again, the empirical evidence is mixed [ADB (2004)]. Chatthobadhay and Duflo (2004) found that that women who were elected as village leaders under the reservation policy in the Indian states of West Bengal and Rajastan invested more in those public goods that more closely linked to women’s concerns, such as drinking water. Baden (1999) showed that it depends on local power structures and on the availability and competition over resources whether or not women benefit from decentralisation. In view of the mixed results, important knowledge gaps remain regarding the possibilities to promote public service provision for the poor and for women through political decentralisation and associated affirmative action.

scholarly journals Economic Freedom And Investment Efficiency In The MENA Region

2017 ◽  
Vol 33 (4) ◽  
pp. 841
Author(s):  
Asma’a Al-Amarneh
Keyword(s):  
Regression Models ◽  
Economic Freedom ◽  
Investment Efficiency ◽  
Market Returns ◽  
Mena Region ◽  
Volatility Risk ◽  
Market Return ◽  
The Government ◽  
Using Data ◽  
The Cost

The purpose of this study is to investigate the effect of economic freedom level on investment efficiency; predicted by market return and volatility; using data covering the period from 1996 tell 2015 for the MENA region countries. Simple regression models and multivariate regression models were applied to test our hypothesis. The results show that the economic freedom level has a little impact on market return, and the capital market performance get better as the government regulations get highly efficient and the financial system is accessible and effi­ciently functioning. In the same time, the evidence points out that economic freedom decrease market returns’ volatility (risk), indicating that; if government’s regulation in banking and financial systems doesn’t assure transparency and honesty, then financial markets efficiency will be hindered, the cost of financing will increase and the completion will be limited. Keeping in mind that the two fundamental aspects of investment are risk and return; it is obvious that economic freedom enhances the risk-return investment efficiency in the MENA region.

Life after public employment retrenchment: evidence from Italian municipalities

2019 ◽  
Vol 20 (3) ◽  
pp. 733-782 ◽  
Author(s):  
Marta Auricchio ◽  
Emanuele Ciani ◽  
Alberto Dalmazzo ◽  
Guido de Blasio
Keyword(s):  
Public Sector ◽  
Central Government ◽  
Local Level ◽  
Previous Literature ◽  
Economic Conditions ◽  
Public Employment ◽  
Public And Private ◽  
Housing Services ◽  
Using Data ◽  
The Impact

Abstract We investigate the interaction between public and private employment at the local level. In contrast to previous literature, which has mainly examined public sector expansions, we provide evidence about the impact of downsizing. Using data from Italian municipalities, the IV strategy we adopt here exploits the fact that the contraction in public employment observed between the last two Censuses (2001–2011) was strongly influenced by the decision made by central government, with little reference to local economic conditions. Our results suggest that exogenous reductions in public employment stimulate the growth of private jobs, mostly in tradables. The change in local prices, especially for housing services, represents a relevant channel for the interplay between the tradable and non-tradable sectors.

scholarly journals MEMBANGUN LEGAL BASIS PENGISIAN JABATAN DALAM PENINGKATAN KUALITAS PELAYANAN PUBLIK

2015 ◽  
Vol 44 (3) ◽  
pp. 364
Author(s):  
Retno Mawarini Sukmariningsih
Keyword(s):  
Local Governments ◽  
Local Level ◽  
Civil Servants ◽  
Legal Basis ◽  
Civil State ◽  
Position Determination ◽  
Public Servant ◽  
State Apparatus ◽  
The Government

Civil servants management at the Regional Agencies implemented by local governments in accordance with the legislation., The substance of the requirements for filling the positions (Contract Position Determination and Structural), can be set at the level of local regulations. A Civil State Apparatus in addition to unifying the nation primarily as a public servant and qualified professionals. In building the legal basis of structural filling positions, especially at the local level through the establishment of regional regulation is not easy, a fact often creates debate table because political aspects are the dominant rather than normative aspects required in forming the Government Area and the persistence of attitudes like and dislike.

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