scholarly journals Political Budget Cycle: Mexican Town Halls Case

2016 ◽  
Vol 6 (8) ◽  
pp. 31
Author(s):  
Edgar Alfredo Nande Vazque ◽  
Juan Carlos Martínez
Keyword(s):  
Public Expenditure ◽  
Generalized Method Of Moments ◽  
Public Works ◽  
Political Budget Cycle ◽  
Budget Cycle ◽  
Public Expenditure Management ◽  
Voting Decisions ◽  
Investment Spending ◽  
Town Halls ◽  
The Relationship

<p>In the current economic context, one of the issues of concern is the growth of public spending of municipalities of Mexico and thus increasing public debt. This combines the traditional interest that literature has been devoted to the relationship between economics and politics from the perspective of Political Budget Cycle. The aim of this paper is to analyze the effect of elections in public expenditure management. To this end, a system based on the Generalized Method of Moments (GMM), which uses instrumental variables based on delays and differences of all variables in the model estimator was used. Our findings indicate that there is an expansion of total expenditure, spending on public works and infrastructure and current expenditure contracted work, indicating the preference of politicians for using investment spending to influence voter behavior. The work also notes that citizens value the policies of public expenditure management when making their voting decisions.</p>

scholarly journals Public Expenditure Management and Political Budget Cycles: The Case of Colima City Council 2009-2018

2021 ◽  
Vol 13 (4) ◽  
pp. 40
Author(s):  
Omar Alejandro Pérez-Cruz ◽  
Edgar Alfredo Nande-Vázquez ◽  
Juan Carlos Martínez-Verdugo
Keyword(s):  
Population Growth ◽  
Public Expenditure ◽  
City Council ◽  
Public Works ◽  
Political Budget Cycles ◽  
Dummy Variable ◽  
Public Expenditure Management ◽  
Investment Spending ◽  
The City ◽  
Budget Cycles

The political budget cycles (PBC), as an evolutionary part of the economic political cycle (EPC), demonstrate the existence of opportunistic practices of economic variables, electoral, and budgetary that the politicians in power operate in their management to continue in office. In this sense, the literature suggests a pattern of opportunistic behavior on voters&rsquo; myopia, showing that there is little retrospective memory for voters, allowing the party in power to execute public policies successfully. Thus, the objective of the research is to analyze the existence of political budgetary cycles in the management of investment spending by the City of Colima from the years 2009 to 2018. Thus, the objective of the research is to analyze the existence of political budgetary cycles in the management of investment spending by the City of Colima from the years 2009 to 2018. This was analyzed using the panel data methodology (MCO; EF; EA), to estimate the variables dependent on investment and current expenditure, a dummy variable was introduced to identify the year before the election and to be able to control the influence of the electoral period on each regression. The results show that investment spending is related to election periods, population growth, and the federal social aid budget sector. Current expenditure was only related to population growth. This allows us to explain that spending is a resource that finances public works in the states of Mexico. Thus, this research shows that public works is a public expenditure that the states of Mexico apply more in times of elections.

scholarly journals Planning Consistency and the Political Budget Cycle in Indonesia

2021 ◽  
pp. 327
Author(s):  
Khoirunurrofik Khoirunurrofik ◽  
Farina Rahmawati
Keyword(s):  
Capital Expenditure ◽  
Least Square ◽  
The Political ◽  
Political Budget Cycle ◽  
Political Budget Cycles ◽  
Budget Cycle ◽  
One Year ◽  
The Relationship ◽  
Effect Method

This study aims to find empirical evidence of the relationship between planning and the practices associated with political budget cycles in Indonesia, with reference to the simultaneous regional head elections held in 2017 and 2018. A fixed-effect method using least-square dummy variables analyzes the role of planning in the relationship between local-government spending and political budget cycle behaviors. The results indicate that consistency between planning and budgeting can control the discretion applied by regional heads to increase and decrease budget expenditure in the two years before an election, one year before an election and in the election year itself. The magnitude of these reductions or increases differs between types of expenditure. The association between planning and the political budget cycle is significant in the two years before an election for primary expenditure allocations and in a year before an election for allocations of capital expenditure, social assistance, and grants and subsidies.

scholarly journals Online Reviews and Product Sales: The Role of Review Visibility

2021 ◽  
Vol 16 (4) ◽  
pp. 638-669
Author(s):  
Miriam Alzate ◽  
Marta Arce-Urriza ◽  
Javier Cebollada
Keyword(s):  
Decision Making ◽  
Dynamic Models ◽  
Generalized Method Of Moments ◽  
Online Reviews ◽  
Consumer Decision Making ◽  
Product Sales ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

When studying the impact of online reviews on product sales, previous scholars have usually assumed that every review for a product has the same probability of being viewed by consumers. However, decision-making and information processing theories underline that the accessibility of information plays a role in consumer decision-making. We incorporate the notion of review visibility to study the relationship between online reviews and product sales, which is proxied by sales rank information, studying three different cases: (1) when every online review is assumed to have the same probability of being viewed; (2) when we assume that consumers sort online reviews by the most helpful mechanism; and (3) when we assume that consumers sort online reviews by the most recent mechanism. Review non-textual and textual variables are analyzed. The empirical analysis is conducted using a panel of 119 cosmetic products over a period of nine weeks. Using the system generalized method of moments (system GMM) method for dynamic models of panel data, our findings reveal that review variables influence product sales, but the magnitude, and even the direction of the effect, vary amongst visibility cases. Overall, the characteristics of the most helpful reviews have a higher impact on sales.

Electoral and Partisan Cycles in the Canadian Provinces

1999 ◽  
Vol 32 (2) ◽  
pp. 273-292 ◽  
Author(s):  
François Petry ◽  
Louis M. Imbeau ◽  
Jean Crête ◽  
Michel Clavet
Keyword(s):  
The Political ◽  
Discretionary Power ◽  
Normal Behaviour ◽  
Political Budget Cycle ◽  
Budget Cycle ◽  
Opportunistic Behaviour ◽  
Electoral Defeat ◽  
Canadian Provinces ◽  
The Government ◽  
Expansionary Policy

AbstractThis study tests explanations of the growth of Canadian provincial governments that draw from the political budget cycle approach. The approach assumes that governments jointly respond to electoral and partisan goals. When the next election is not expected soon, the government uses its discretionary power to pursue its ideological target. When the next election is near, politicians in government, fearing electoral defeat, deviate from their normal behaviour and engage in a re-election effort by undertaking an expansionary policy. This study suggests that provincial governments behave in the opportunistic fashion described by the model. Moreover, there is no sign that this opportunistic behaviour has been affected by government cutbacks in the 1990s.

Merton-type default risk and financial performance: the dynamic panel moderation of firm size

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Mushafiq ◽  
Syed Ahmad Sami ◽  
Muhammad Khalid Sohail ◽  
Muzammal Ilyas Sindhu
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Default Risk ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Content Type ◽  
Nonfinancial Firms ◽  
The Relationship

PurposeThe main purpose of this study is to evaluate the probability of default and examine the relationship between default risk and financial performance, with dynamic panel moderation of firm size.Design/methodology/approachThis study utilizes a total of 1,500 firm-year observations from 2013 to 2018 using dynamic panel data approach of generalized method of moments to test the relationship between default risk and financial performance with the moderation effect of the firm size.FindingsThis study establishes the findings that default risk significantly impacts the financial performance. The relationship between distance-to-default (DD) and financial performance is positive, which means the relationship of the independent and dependent variable is inverse. Moreover, this study finds that the firm size is a significant positive moderator between DD and financial performance.Practical implicationsThis study provides new and useful insight into the literature on the relationship between default risk and financial performance. The results of this study provide investors and businesses related to nonfinancial firms in the Pakistan Stock Exchange (PSX) with significant default risk's impact on performance. This study finds, on average, the default probability in KSE ALL indexed companies is 6.12%.Originality/valueThe evidence of the default risk and financial performance on samples of nonfinancial firms has been minimal; mainly, it has been limited to the banking sector. Moreover, the existing studies have only catered the direct effect of only. This study fills that gap and evaluates this relationship in nonfinancial firms. This study also helps in the evaluation of Merton model's performance in the nonfinancial firms.

Political Budget Cycle: An Analysis of Brazilian Municipalities

2021 ◽  
Author(s):  
Gilberto Crispim ◽  
Leonardo Flach ◽  
Luiz Alberton ◽  
Celma Duque Ferreira
Keyword(s):  
Political Budget Cycle ◽  
Budget Cycle

AN EXPLORATION OF THE RELATIONSHIP BETWEEN THE QUALITY OF PUBLIC GOVERNANCE AND INCOME INEQUALITY: A CASE STUDY OF VIETNAM

2021 ◽  
pp. 1-15
Author(s):  
PHUC VAN PHAN
Keyword(s):  
Income Inequality ◽  
Local Governance ◽  
Low Cost ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Living Standard ◽  
Public Governance ◽  
The Relationship

Public governance and income inequality relationship is complex and debatable. This paper examines the extent to which the quality of local governance affects inequality in Vietnam spanning the 2006–2016 period. I apply a generalized method of moments (GMM) estimators to a dynamic panel data extracted from the Vietnam’s provincial competitiveness index and the Vietnam household living standard surveys. The findings are that there is a positive inequality — corruption link but no statistically significant correlation coefficient between the overall level of governance and income disparity. The study, therefore, suggests that the Vietnamese Government at all levels should consider both more effective legal practices and economic low-cost solutions to mitigate corruption.

scholarly journals Gender Disparities, Labor Force Participation and Transfer Payment: What Do Macro Data Say?

2016 ◽  
Vol 16 (4) ◽  
pp. 375-387
Author(s):  
Hale Akbulut
Keyword(s):  
Labor Force ◽  
Labor Force Participation ◽  
Generalized Method Of Moments ◽  
Gender Disparities ◽  
Transfer Payment ◽  
Participation Rates ◽  
Transfer Payments ◽  
Endogenous Variables ◽  
Employ Labor Force ◽  
The Relationship

Abstract This paper analyzes the relationship between government transfer payments and labor force participation rates for a sample of 34 countries over the period of 1995- 2012. We benefit from two step system Generalized Method of Moments as a methodology and thereby eliminate the biases that may arise from endogenous variables. Our econometric results also confirm the employment of the dynamic methodology. First, we estimate the coefficients for overall population and then we re-estimate the coefficients for different genders. As a result of our estimations we observe that the significances and the values of coefficients increase when we employ labor force participation rates of females as dependent variable. Therefore, our findings suggest that transfer payments are more effective in working decisions of females.

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