scholarly journals Fiscal Impacts on Output in a Small Open Economy: The Case of Albania

2016 ◽  
Vol 63 (2) ◽  
pp. 161-169
Author(s):  
Nikolay Patonov
Keyword(s):  
Open Economy ◽  
Government Expenditure ◽  
Small Open Economy ◽  
Tax Revenue ◽  
Vector Autoregressive ◽  
Gdp Growth Rate ◽  
Fiscal Impacts ◽  
Policy Impacts ◽  
The Government ◽  
Empirical Methodology

The paper is intended to study the effects of total government spending and tax revenue on the annual GDP growth rate in Albania. On this base, we can examine whether and to which extent the macroeconomic governance could rely on those fiscal instruments in terms of a small open economy. The empirical methodology is based on regression analysis which includes OLS estimation on simply specified regression model and Vector Autoregressive estimates. The results support the assumptions that government expenditure is a weak instrument for policy impacts and the government must rely on taxation to stimulate economic growth.

scholarly journals The Role of Fiscal Policy in The Inflation: VAR Analysis of Kazakhstan’s Economy, 2005-2020

2021 ◽  
Author(s):  
Zhandos Ybrayev
Keyword(s):  
Fiscal Policy ◽  
Open Economy ◽  
Inflation Rate ◽  
Social Protection ◽  
Government Expenditure ◽  
Small Open Economy ◽  
Positive Effects ◽  
Rate Vector ◽  
The Government ◽  
Domestic Inflation

Abstract The paper analyzes the patterns of dynamic effects of fiscal policy to domestic inflation in the context of a small open economy. Using 4-variable (government spending, fiscal deficit, money stock (M2), and domestic inflation rate) vector autoregression model estimated with quarterly data for Kazakhstan’s economy in the period of 2005Q1-2020Q1. We distinguish between government expenditure on consumption and investment. As a result, we find that a fiscal policy shock have certain positive effects on the inflation rate. In particular, social protection spending adds 1% to the inflation rate in the following four quarters, while the government capital purchases do not produce sizable effect on inflation dynamics even in the longer term horizons. Overall, for the fiscal policy to become inflation-neutral, we suggest several policy recommendations.

scholarly journals Educational Level and Tax Compliance: Empirical Evidence From Nigeria

2020 ◽  
Vol 10 (1) ◽  
pp. 160
Author(s):  
Stanley Ogoun ◽  
Godspower Anthony Ekpulu
Keyword(s):  
Educational Level ◽  
Government Expenditure ◽  
Tax Compliance ◽  
Tax Revenue ◽  
Education Expenditure ◽  
Government Investment ◽  
Ex Post ◽  
National Priority ◽  
Ex Post Facto ◽  
The Government

The study interrogates the relationship between educational level and tax compliance in Nigeria. The study employs the ex post facto research design to ascertain how government investment in education enhances tax compliance. The study covers 17 years (2002-2018) for both tax revenue (a surrogate for tax compliance) and education expenditure (a surrogate for educational level). From the empirical results, the study concludes that there is a positive nexus between government expenditure on education and tax revenue. The study, therefore, recommends that as a matter of necessity, the government should invest more in the overall educational demand of her citizens not only from tax revenues but from other oil and non-oil sources. The governments, from the federal and state levels, should act as a matter national priority endeavour to meet up with the international budgetary benchmark allocation for education, as recommended by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in its Education for All (EFA) document 2000-2015. This will give Nigerians more access to quality education that would result in moving up the global ranking in HDI with its resultant benefits.

scholarly journals Status Preference, Wealth and Dynamics in the Open Economy

2004 ◽  
Vol 5 (3) ◽  
pp. 335-355 ◽  
Author(s):  
Walter H. Fisher
Keyword(s):  
Open Economy ◽  
Capital Mobility ◽  
Critical Role ◽  
Government Expenditure ◽  
Small Open Economy ◽  
Current Account Balance ◽  
Financial Assets ◽  
Transitional Dynamics ◽  
Economy Model ◽  
Interest Rate Shocks

Abstract The implications of status preference in a simple open economy model are investigated in this paper. The open economy is modeled as a continuum of identical representative agents who have preferences over consumption and status. In the paper status is identified as relative wealth, which takes the form of relative holdings international financial assets. A symmetric macroeconomic equilibrium is derived in which status is the source of transitional dynamics for domestic consumption and the current account balance. This result illustrates another way to combine transitional dynamics with interior equilibria in the small open economy Ramsey model with perfect capital mobility. We also show that status preference plays a critical role in influencing the open economy’s adjustment to government expenditure and world interest rate shocks.

Liquidity constraints, international trade, and optimal monetary policy

2017 ◽  
Vol 20 (2) ◽  
Author(s):  
Wai-Ming Ho
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
Capital Requirements ◽  
Capital Inflows ◽  
Working Capital ◽  
Tax Rate ◽  
Friedman Rule ◽  
Domestic Credit ◽  
International Borrowing ◽  
The Government

AbstractThe availability of liquidity matters for an economy’s production and trade as firms need working capital to finance their operations. This paper studies the interaction between trade and capital flows operating through the liquidity allocations in the financial markets using a small-open-economy, overlapping-generations model. Working capital requirements distort the intratemporal consumption allocations. International capital inflows help easing liquidity in the domestic credit market, facilitating trade and improving the intratemporal allocation, while distorting the intertemporal allocation of the economy. We show how the government can use the Friedman rule and differentiated consumption taxes to address the tradeoff between the intratemporal and intertemporal distortions and achieve the second best optimum. Imposing a higher tax rate on imports can reduce the international borrowing to imports ratio and enhance the efficiency in using capital inflows to facilitate trade flows.

scholarly journals The Impacts of Temporary and Permanent Public Health Policies on HRQOL in a Small Open Economy

2021 ◽  
Vol 13 (17) ◽  
pp. 9866
Author(s):  
Yasuhiro Nakamoto ◽  
Taketo Kawagishi
Keyword(s):  
Public Health ◽  
Open Economy ◽  
Public Investment ◽  
Small Open Economy ◽  
Health Policies ◽  
Public Health Policies ◽  
Long Run ◽  
Related Quality ◽  
Health Related ◽  
The Government

Considering that people can invest in their health-related quality of life (HRQOL), we investigate the effects of public health policies (i.e., a health investment subsidy policy and the direct distribution of health-related goods) on HRQOL in a small open economy. We find that when the government makes public investment in HRQOL temporarily, HRQOL deteriorates or does not improve at least. On the contrary, when public investment is enforced permanently, it improves in the long run.

scholarly journals Expenditure on sports and leisure by the Government of the State of Piauí

2020 ◽  
Vol 32 (1) ◽  
Author(s):  
Edmilson Santos Dos Santos ◽  
Luciano Juchem ◽  
Luiz Alcides Ramires Maduro
Keyword(s):  
State Government ◽  
Quantitative Data ◽  
Government Expenditure ◽  
Social Assistance ◽  
The State ◽  
Descriptive Statistics ◽  
Tax Revenue ◽  
Spending Behavior ◽  
The Government ◽  
Social Agendas

The present study aimed to analyze the participation of the government of Piauí in the bottom-up funding of sport and leisure public policies from 2013 to 2017, embracing four aspects: (1) comparison of expenditure with tax revenue; (2) comparison of expenditure with other social agendas, notably Social Assistance and Culture; (3) identifying the spending behavior regarding subfunctions; (4) analyzing the efficiency in resource liquidation comparatively. Quantitative data were collected from the National Treasure website and submitted to descriptive statistics. In a conclusive manner, the study indicated that: (a) state government expenditure with the SLF is far shorter than the estimated by the II National Sport Conference; (b) expenditure has not followed the positive revenue variation during the period; (c) when compared to Social Assistance and Culture, Sport and Leisure has been the less considered area on the government’s agenda; (d) there has been an abrupt chance in the government’s agenda towards performance sport; (e) the government acts in an efficient way regarding the liquidation of planned resources.

scholarly journals Testing the Twin Deficit Hypothesis for Kyrgyzstan Economy

2015 ◽  
Author(s):  
Damira Baigonushova
Keyword(s):  
Open Economy ◽  
Budget Deficit ◽  
Government Expenditure ◽  
Trade Deficit ◽  
The State ◽  
Real Economy ◽  
Twin Deficits ◽  
State Budget ◽  
Vector Autoregressive ◽  
Model Technique

Twin deficits hypothesis suggests that there is a positive relationship between budget and current account deficits. The present study examines Twin Deficits Hypothesis over the period of 2005:01–20013:12 in Kyrgyzstan by using Vector Autoregressive Model technique. The results show that there are relationships between government expenditure, export and import. The causalities are from government expenditure to export and import. These results confirm the Keynesian view, which asserts the existence of twin deficits, meaning that the state budget deficit at weak real economy, in an open economy, increase imports, which is the cause of twin deficits in the economy of Kyrgyzstan. To solve the problem of twin deficits, the state must pursue an active foreign trade policy in addition to fiscal policy, as it is proven empirically the state budget deficit has a big impact on trade deficit, but not the main factor of trade deficit.

scholarly journals PERANAN KEBIJAKAN MONETER DALAM MENJAGA STABILITAS PEREKONOMIAN INDONESIA SEBAGAI RESPON TERHADAP FLUKTUASI PEREKONOMIAN DUNIA

2007 ◽  
Vol 9 (2) ◽  
pp. 145-177
Author(s):  
M. Maulana Al Arif ◽  
Achmad Tohari
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Open Economy ◽  
Small Open Economy ◽  
Monthly Data ◽  
Vector Autoregressive ◽  
The World ◽  
The Exchange Rate ◽  
The Impact

This paper analyzes the impact of the inflation and the world interest rate on the Indonesian economy and the effectiveness of the Indonesian central bank policy to adopt the domestic macroeconomic fluctuation.Assuming Indonesia as a small-open economy, the Stuctural Vector Autoregressive Model is utilized on the monthly data during the periode of 1999: 1 – 2004: 12 covering the main domestic macroeconomic indicator (output, price, money supply, interest rate and the exchange rate) and the world oil price and world interest rate as the disturbance source.The analysis provides 2 main results, first, the international variables do have impacts on the domestic variables fluctuation, implying the fragility of the domestic economy due to the external shock, second, the monetary policy is effective on supporting the economic growth and stabilizing the price level. However, the Bank Indonesia policy to stabilize the international shock via the exchange rate channel, contributes to a higher impact of the international shock on domestic interest rate.Keywords: monetary policy, business cycle, SVARJEL Classification: E52, E32, C32, F41

scholarly journals Tax Competition and Asymmetric Countries

Ekonomika ◽  
2004 ◽  
Vol 68 ◽  
Author(s):  
Anton Jevcak
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
National Income ◽  
Tax Rates ◽  
Tax Rate ◽  
Eu Member States ◽  
Public Inputs ◽  
Tax Harmonisation ◽  
Capital Tax ◽  
The Government

This paper explores the consequences of a difference in the levels of public inputs accumulated over time in a small open economy model where capital tax revenues are used exclusively for the provision of public inputs, while the government sets the capital tax rate in way to maximise its country’s national income. It is shown that in this case the optimal capital tax rate in a country is a decreasing function of its stock of accumulated public inputs. The model thus implies that capital tax harmonisation could actually be detrimental to the so-called core EU member states as it could fix their capital tax rates at an in-optimally high levels and thus hinder their ability to dampen undesirable capital out- flows.

scholarly journals Model Pertumbuhan Utang Luar Negeri Indonesia

2018 ◽  
Author(s):  
Muhammad Subhan
Keyword(s):  
Interest Rate ◽  
Government Expenditure ◽  
External Debt ◽  
Tax Revenue ◽  
Literature Study ◽  
First Order ◽  
Expenditure Rate ◽  
The Government ◽  
Linear Differential ◽  
The Interest Rate

The Government of Indonesia do external debt because government expenditure is greater than his revenue. External debt of Indonesia increas every year. To see its growth, it can be done with make a model of Indonesia’s external debt. This research is literature study. The model of the growth of Indonesia’s external debt in form of linear differential equations of first order that the solution can be determined. From the analysis results, Indonesia’s external debt affected by the interest rate, the expenditure rate, the tax revenue rate and non-tax revenue rate.

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