State Rainy Day Funds and Government General Fund Expenditures: Revisiting the Stabilization Effect

2019 ◽  
Vol 47 (3) ◽  
pp. 465-492 ◽  
Author(s):  
Wenchi Wei ◽  
Dwight V. Denison
Keyword(s):  
Panel Data ◽  
Empirical Analysis ◽  
State Government ◽  
Explanatory Variable ◽  
Data Set ◽  
General Fund ◽  
Economic Recessions ◽  
Rainy Day Funds ◽  
Stabilization Effect ◽  
The Empirical Analysis

This study explores the stabilization effect of state rainy day funds (RDFs) on government general fund expenditures (GFEs). We discuss and explicitly illustrate the concept of stabilization effect. Moreover, we utilize the current year’s actual RDF usage as the explanatory variable of interest rather than the previous year’s RDF balance, which most existing studies focus on. A panel data set of states for fiscal years 1998 to 2014 is used in the empirical analysis. Due to the pro-cyclicality of the defined GFE gap and the countercyclicality of RDF usage, their positive correlation revealed in the empirical results demonstrates that the actual RDF usage helps to stabilize state government GFEs in both economic recessions and expansions. We also verify that the previous year’s RDF balance, when interacted with RDF deposit and withdrawal rules, can influence government GFEs, thus demonstrating the importance of RDF rules.

scholarly journals Impact of the volatility of resource revenue on non-resource revenue volatility

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Empirical Analysis ◽  
Economic Diversification ◽  
Data Set ◽  
Content Type ◽  
Generalized Methods Of Moments ◽  
Public Revenue ◽  
Revenue Volatility ◽  
The Stability ◽  
Methods Of Moments ◽  
The Empirical Analysis

PurposeThis paper investigates the effect of the volatility of resource revenue on the volatility of non-resource revenue.Design/methodology/approachThe empirical analysis has utilized an unbalanced panel data set comprising 54 countries over the period 1980–2015. The two-step system generalized methods of moments (GMM) is the main economic approach used to carry out the empirical analysis.FindingsResults show that resource revenue volatility generates lower non-resource revenue volatility only when the share of resource revenue in total public revenue is lower than 18%. Otherwise, higher resource revenue volatility would result in a rise in non-resource revenue volatility.Research limitations/implicationsIn light of the adverse effect of volatility of non-resource revenue on public spending, and hence on economic growth and development prospects, countries whose total public revenue is highly dependent on resource revenue should adopt appropriate policies to ensure the rise in non-resource revenue, as well as the stability of the latter.Practical implicationsEconomic diversification in resource-rich countries (particularly in developing countries among them) could contribute to reducing the dependence of economies on natural resources, and hence the dependence of public revenue on resource revenue. Therefore, policies in favour of economic diversification would contribute to stabilizing non-resource revenue, which is essential for financing development needs.Originality/valueTo the best of our knowledge, this topic has not been addressed in the literature.

scholarly journals Understanding Donor-Advised Funds: How Grants Flow During Recessions

2019 ◽  
Vol 48 (5) ◽  
pp. 1066-1093
Author(s):  
H. Daniel Heist ◽  
Danielle Vance-McMullen
Keyword(s):  
Panel Data ◽  
The United States ◽  
Longitudinal Analyses ◽  
Data Set ◽  
Aggregated Data ◽  
Charitable Donations ◽  
Economic Recessions ◽  
Macroeconomic Indicators ◽  
Sizable Proportion ◽  
And Control

Donor-advised funds (DAFs) are becoming increasingly popular in the United States. DAFs receive a growing share of all charitable donations and control a sizable proportion of grants made to other nonprofits. The growth of DAFs has generated controversy over their function as intermediary philanthropic vehicles. Using a panel data set of 996 DAF organizations from 2007 to 2016, this article provides an empirical analysis of DAF activity. We conduct longitudinal analyses of key DAF metrics, such as grants and payout rates. We find that a few large organizations heavily skew the aggregated data for a rather heterogeneous group of nonprofits. These panel data are then analyzed with macroeconomic indicators to analyze changes in DAF metrics during economic recessions. We find that, in general, DAF grantmaking is relatively resilient to recessions. We find payout rates increased during times of recession, as did a new variable we call the flow rate.

Causes of China's Low Consumption from the Perspective of Local Governmental Competition

2020 ◽  
Vol 13 (1) ◽  
pp. 15-31
Author(s):  
Yaling Zhu ◽  
Huifang Zhang
Keyword(s):  
Panel Data ◽  
General Equilibrium ◽  
Public Goods ◽  
Mathematical Models ◽  
Empirical Analysis ◽  
Local Governments ◽  
Household Consumption ◽  
Total Consumption ◽  
The Government ◽  
The Empirical Analysis

Taking into account the three-sector general equilibrium perspective of the government, business, and household sectors and taking government public goods investment as intermediary; this article builds mathematical models of local governmental competition and three-sector consumption. It also theoretically analyzes the impacting path of local governmental competition, causing increased investment in public goods, thereby reducing consumption. At the same time, based on the model of China's provincial panel data from 1993 to 2015, the empirical analysis shows that a 1% increase in the level of competition among local governments will result in a corresponding decrease of 0.757% in total consumption, 0.348% in governmental competition, 0.340% in business consumption and 0.366% in household consumption. Local governmental competition leads to the government's tendency to invest in public goods and reduces the regional consumption, which especially damages the consumption capacity of the household sector.

Focusing the High-Technology Firm: How Outsourcing Affects Technological Knowledge Exploration

2016 ◽  
Vol 44 (5) ◽  
pp. 1736-1765 ◽  
Author(s):  
Niron Hashai
Keyword(s):  
Panel Data ◽  
Empirical Analysis ◽  
High Technology ◽  
Technological Knowledge ◽  
Data Set ◽  
Technology Firms ◽  
High Technology Firms ◽  
Knowledge Exploration

This study argues and shows that the extent to which high-technology firms focus efforts by outsourcing production, assembly, and logistics activities enhances the extent of technological knowledge exploration. This occurs through three modalities: (1) intensifying the effect of internal R&D efforts on exploration; (2) intensifying the effect of learning from competing partners, through R&D alliances, on exploration; and (3) intensifying the effect of learning from customers on exploration. Empirical analysis of a panel data set of Israeli high-technology firms supports the view that the combination of these three modalities is associated with greater exploration of new technological knowledge.

Sign in / Sign up

Export Citation Format

Share Document