scholarly journals Public Investment, Government Indebtedness and Transitional Dynamics

2018 ◽  
Vol 10 (2) ◽  
pp. 121-150
Author(s):  
Constantine Angyridis ◽  
Panagiotis Tsintzos
Keyword(s):  
Growth Models ◽  
Public Investment ◽  
Income Taxation ◽  
Fiscal Rules ◽  
Aggregate Fluctuations ◽  
Endogenous Growth Model ◽  
The Government ◽  
Progressive Income Taxation ◽  
Unstable Dynamics

This paper considers an endogenous growth model with public capital and government debt. In setting the level of public investment each period, the government is assumed to follow two commonly used in the growth literature fiscal rules: public investment is either equal to a constant fraction of output or equal to a constant share of tax revenues. In our model, we allow revenues to be raised by the government through progressive income taxation and bonds issue. For both fiscal rules, we show that the potential occurrence of either indeterminacy or instability crucially depends on whether the government is a debtor or a creditor. In particular, government indebtedness causes the economy to be prone to either belief-driven aggregate fluctuations or unstable dynamics. This is a novel result in the related literature which has largely overlooked the role of public debt as a possible contributing factor to the presence of indeterminacy and instability in growth models.

scholarly journals The role of inventories for the propagation of aggregate fluctuations: lessons for Bulgaria (1999–2019)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aleksandar Vasilev
Keyword(s):  
Business Cycle ◽  
Design Methodology ◽  
Aggregate Fluctuations ◽  
Content Type ◽  
Consumption Volatility ◽  
Business Cycle Fluctuations ◽  
The Government ◽  
Rbc Models ◽  
Quantitative Importance

PurposeIn this study, inventories are introduced as a productive input into a real-business-cycle (RBC) setup augmented with the government.Design/methodology/approachThe model is calibrated to Bulgarian data for the period 1999–2019. The quantitative importance of the presence of inventories is investigated.FindingsThe quantitative effect of inventories is found to be important: decreasing consumption volatility and increasing employment variability. Those results, however, are at the expense of decreasing wage volatility and increasing investment volatility, and generally worsening the contemporaneous correlations of the main variables with output.Originality/valueFluctuations in inventory levels matter for business cycle fluctuations in Bulgaria, which is a novel result. Still, there is a need for more research on the incorporation of inventories into RBC models to better fit the Bulgarian experience.

scholarly journals DYNAMIC ANALYSIS OF REDUCTIONS IN PUBLIC DEBT IN AN ENDOGENOUS GROWTH MODEL WITH PUBLIC CAPITAL

2016 ◽  
Vol 21 (6) ◽  
pp. 1454-1483 ◽  
Author(s):  
Noritaka Maebayashi ◽  
Takeo Hori ◽  
Koichi Futagami
Keyword(s):  
Endogenous Growth ◽  
Growth Model ◽  
Public Investment ◽  
Public Capital ◽  
Government Debt ◽  
The European Union ◽  
Fiscal Consolidation ◽  
Growth Pact ◽  
Endogenous Growth Model ◽  
The Government

We construct an endogenous growth model that includes productive public capital and government debt. We assume that the government debt-to-GDP ratio is gradually adjusted to a target level, reflecting the permanent commitment rules in the Stability and Growth Pact or the Maastricht Treaty in the European Union (i.e., the well-known 60% rule). These rules affect government borrowing and public investment. Here, we examine the welfare implications of the permanent commitment rules. We find that fiscal consolidation based on the rules improves social welfare. Moreover, the improvement in welfare accelerates as fiscal consolidation progresses more rapidly. Last, we also discuss and derive the optimal long-run debt-to-GDP ratio.

The Indian Economy After Independence

2020 ◽  
Author(s):  
Tirthankar Roy
Keyword(s):  
Human Development ◽  
Public Investment ◽  
Economic Change ◽  
Green Revolution ◽  
Private Investment ◽  
Standards Of Living ◽  
Gulf States ◽  
The Government ◽  
The Persian Gulf

The Indian Union, from the time of independence from British colonial rule, 1947, until now, has undergone shifts in the trajectory of economic change and the political context of economic change. One of these transitions was a ‘green revolution’ in farming that occurred in the 1970s. In the same decade, Indian migration to the Persian Gulf states began to increase. In the 1980s, the government of India seemed to abandon a strategy of economic development that had relied on public investment in heavy industries and encouraged private enterprise in most fields. These shifts did not always follow announced policy, produced deep impact on economic growth and standards of living, and generated new forms of inequality. Therefore, their causes and consequences are matters of discussion and debate. Most discussions and debates form around three larger questions. First, why was there a turnaround in the pace of economic change in the 1980s? The answer lies in a fortuitous rebalancing of the role of openness and private investment in the economy. Second, why did human development lag achievements in income growth after the turnaround? A preoccupation with state-aided industrialization, the essay answers, entailed neglect of infrastructure and human development, and some of that legacy persisted. If the quality of life failed to improve enough, then a third question follows, why did the democratic political system survive at all if it did not equitably distribute the benefits from growth? In answer, the essay discusses studies that question the extent of the failure.

scholarly journals Aggregate Trends in Four Main Agricultural Regions in Egypt, 1964–1979

1988 ◽  
Vol 20 (2) ◽  
pp. 135-164 ◽  
Author(s):  
Hadi S. Esfahani
Keyword(s):  
Public Investment ◽  
Arable Land ◽  
Relative Importance ◽  
Investment Policies ◽  
Relative Prices ◽  
The Past ◽  
The Government ◽  
Egyptian Government ◽  
Agricultural Regions

In the past two decades, the rate of growth of agricultural output in Egypt has been quite low and, in particular, has fallen behind the country's population growth rate. Most observers seem to agree that despite certain natural constraints, such as limitation of arable land, the sector's performance could have been much better if the Egyptian government had chosen to pursue more supportive policies toward agriculture. There is, however, much less agreement over the specific policies that have been most responsible for the sector's past stagnation. Several recent studies have emphasized the role of price policies, pointing out that the government has taxed agriculture heavily by keeping the relative prices of most major crops quite low. Others, on the other hand, have held the government's investment policies responsible, arguing that the sector's resources have remained undeveloped because of insufficient public investment in research, extension, and infrastructure. While the debate over the relative importance of these sets of policies has generated a number of valuable contributions to the understanding of Egyptian agriculture, the past analyses of the sector's production system have not sufficed to settle the differences. One of the main problems is that, so far, most studies have concentrated on outputs and prices of individual crops and have thus failed to provide comprehensive analyses of the sector as a whole.

scholarly journals PENINGKATAN PERAN SUKUK NEGARA DALAM PEMBIAYAAN INFRASTRUKTUR

2021 ◽  
Vol 3 (2) ◽  
pp. 56-72
Author(s):  
Eri Hariyanto
Keyword(s):  
Central Government ◽  
Public Investment ◽  
Analytic Network Process ◽  
Infrastructure Development ◽  
Project Financing ◽  
The Public ◽  
Network Process ◽  
The Government

Sukuk Negara is one of the sharia-based financing instruments issued by the government to meet the budget deficit. This study aims to identify priority issues in the development of Sukuk Negara to enhance the role of Sukuk Negara in supporting government infrastructure financing. From the results of data management using the Analytic Network Process (ANP) method, it is known that several priority problems include the issuance of Sukuk Negara financing limited to central government projects, the lack of quality and quantity of Islamic finance human resources compared to conventional finance, and the low interest in public investment in Islamic financial instruments. The priority of the solution is the need to make regulations that allow Sukuk Negara to finance PPP project financing schemes, increase innovation and quality of sukuk products so that they are able to achieve the set targets, and foster public investment interest. Thus, the strategy in supporting the government's infrastructure development is to increase the proportion of SBSN issuance, increase socialization and communication to the public, and diversify underlying assets.

scholarly journals Assessment of bringing in the progressive income taxation in Lithuania

2013 ◽  
pp. 96-109
Author(s):  
Monika Melnykaitė ◽  
Agnė Ramanauskaitė
Keyword(s):  
European Union ◽  
Income Tax ◽  
Income Taxation ◽  
The European Union ◽  
Tax Rate ◽  
Direct Taxation ◽  
Progressive Tax ◽  
The Republic ◽  
The Government ◽  
Progressive Income Taxation

Lately discussions of bringing in the progressive income taxation in Lithuania are increasing. Consensus on this issue in the society is not reached, thus this article aims to reveal the need for the reform of direct taxation in the Republic of Lithuania and to consider aspects of the project of proposed input of the progressive income tax rate and possible consequences of implementing. The aim of the research is to assess the need and initiatives of bringing in the progressive income taxation in Lithuania. This paper describes the theoretical basis for progressive taxation and discloses the need for the reform of direct taxation in the Republic of Lithuania; and assesses the aspects of the project of proposed input of the progressive income tax rate in Lithuania as well as compares them with other countries in the European Union. The results of the research. It is found that the bringing in the progressive income tax rate should be properly reasoned, and the system of the progressive tax rate establishment should be based on calculations and empirical studies; because it can have both positive (short-term) and negative (long-term) impact on the national economy. After the comparison of the proposed system of the progressive tax rate establishment in Lithuania with systems in other countries of the European Union it was revealed that the Lithuanian one could be improved. The main disadvantage of this system is that it does not reduce the payable income tax of lower-income people. Based on the results of the calculations it was established that in order to improve the system of Lithuania it should be taken into the account the system of United Kingdom. Because it is simple and easy to understand, and the government gets the opportunity to correct the non-taxable amount and income ranges according to the tendencies of economic ratios.

On retroeconomy

2017 ◽  
pp. 148-159
Author(s):  
V. Papava
Keyword(s):  
Developing Countries ◽  
Detrimental Effect ◽  
International Competition ◽  
The World ◽  
The Government ◽  
Role Of The Government

This paper analyzes the problem of technological backwardness of economy. In many mostly developing countries their economies use obsolete technologies. This can create the illusion that this or that business is prosperous. At the level of international competition, however, it is obvious that these types of firms do not have any chance for success. Retroeconomics as a theory of technological backwardness and its detrimental effect upon a country’s economy is considered in the paper. The role of the government is very important for overcoming the effects of retroeconomy. The phenomenon of retroeconomy is already quite deep-rooted throughout the world and it is essential to consolidate the attention of economists and politicians on this threat.

The role of graining in ensuring food security

2020 ◽  
pp. 75-79
Author(s):  
R. M. Gambarova
Keyword(s):  
Food Security ◽  
Comparative Analysis ◽  
Systems Approach ◽  
Point Of View ◽  
Government Support ◽  
Grain Production ◽  
The Government ◽  
Favorable Conditions ◽  
Grain Farms

Relevance. Grain is the key to strategic products to ensure food security. From this point of view, the creation of large grain farms is a matter for the country's selfsufficiency and it leading to a decrease in financial expense for import. Creation of such farms creates an abundance of productivity from the area and leads to obtaining increased reproductive seeds. The main policy of the government is to minimize dependency from import, create abundance of food and create favorable conditions for export potential.The purpose of the study: the development of grain production in order to ensure food security of the country and strengthen government support for this industry.Methods: comparative analysis, systems approach.Results. As shown in the research, if we pay attention to the activities of private entrepreneurship in the country, we can see result of the implementation of agrarian reforms after which various types of farms have been created in republic.The role of privateentrepreneurshipinthedevelopmentofproduction is great. Тhe article outlines the sowing area, production, productivity, import, export of grain and the level of selfsufficiency in this country from 2015 till 2017.

E-Projects Challenges in India – Role of Human Resource Management and Technology

2018 ◽  
Vol 6 (8) ◽  
pp. 263
Author(s):  
Ramnik Kaur
Keyword(s):  
Developing Countries ◽  
Public Administration ◽  
Paradigm Shift ◽  
Successful Implementation ◽  
The Public ◽  
Government Services ◽  
The Past ◽  
The Government ◽  
Traditional Approaches

E-governance is a paradigm shift over the traditional approaches in Public Administration which means rendering of government services and information to the public by using electronic means. In the past decades, service quality and responsiveness of the government towards the citizens were least important but with the approach of E-Government the government activities are now well dealt. This paper withdraws experiences from various studies from different countries and projects facing similar challenges which need to be consigned for the successful implementation of e-governance projects. Developing countries like India face poverty and illiteracy as a major obstacle in any form of development which makes it difficult for its government to provide e-services to its people conveniently and fast. It also suggests few suggestions to cope up with the challenges faced while implementing e-projects in India.

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