scholarly journals Public Provision of Goods and Services under Cost Uncertainty: The Government’s Bureaucratic Organization

Mathematics ◽  
2021 ◽  
Vol 10 (1) ◽  
pp. 77
Author(s):  
Giovanni Di Bartolomeo ◽  
Silvia Fedeli ◽  
Michele Santoni

The digital transition is a challenge that developed countries are currently facing. The transition process is associated with different degrees of uncertainty, which are particularly relevant for changes that have to do with the provision of goods and services produced by public administrations. Our paper uses a partial equilibrium model to study the effects of uncertainty on the public provision of goods and services produced by bureaucratic agencies, including the incentive of the government to consolidate production. We assume that bureaucratic agencies may play either a cooperative game with each other and a non-cooperative game against the government (i.e., a consolidated bureaucracy) or a non-cooperative game with each other and against the government (i.e., competing bureaus). Both the government and the bureaus face tradeoffs between maximizing the electorate preferences and extracting some political and/or bureaucratic rents. We find that a cooperative (competitive) bureaucratic solution depends on the nature of the goods produced. We find that costs’ uncertainty affects the level of public production and the way the policymakers extract their rents.

2016 ◽  
Vol 60 (2) ◽  
pp. 15-25
Author(s):  
V. Obolenskiy

The development of Russian foreign trade during the previous five years is analyzed. It is stated that, in terms of value, exports of services and imports of goods and services steadily grew during the first four years of the period under review. Exports of goods also rose during three years, but in 2014 both exports and imports again fell in comparison with the previous year as was the case five years ago. The composition of the Russian exports and imports of goods did not change radically during the previous years. The main items of export are, as always, mineral products, metals and fertilizers. Import is prevailed by foodstuffs, chemicals and heavy engineering equipment. The current situation is featured by the reduction of world oil prices, slump of the domestic economy and war of sanctions with the Western countries. All this substantially impairs the conditions of Russia’s foreign trade activities and inhibits its development in the upcoming years. In the author’s view, the implementation of measures worked out by the government – correction of tariff liabilities before the WTO, redirecting of trade streams from the European to the Asian markets, import substitution and export support – will unlikely improve the situation. Revision of the liabilities before the WTO in the conditions of the decrease of the internal demand and serious devaluation of Ruble is considered as inappropriate and counterproductive. “Asiatic turn” is only capable to compensate to a certain respect the loss of supplies of some food products from Europe, but cannot fully offset the loss of potentialities of the acquisition of modern technologies and equipment from the developed countries. It is doubtful that it will be possible to dramatically cut the import dependence. It is necessary to replace many kinds of foreign goods, but it is impossible to implement a frontal substitution of import in all directions. Excessive stress on the import substitution might lead to the emergence of shortages and poorer availability of some goods at the internal market and, at the worst, to self-isolation and economic autarky. The attempts to build up an effective system of export support might be successful only in the conditions of the establishment of the large-scale production of goods and services which would be comparable with the foreign analogues in respect to the criteria of price and quality. Taking this into consideration the technological renovation of production processes, first of all in the manufacturing industry, and on this basis rising up of the competitiveness of plants and factories are the most important prerequisites for encouraging export activities and formation of the new export specialization of the country.


2021 ◽  
Vol 10 (1) ◽  
pp. 45
Author(s):  
Khairunnisa Musari

Pandemic brings a crisis. This makes world leaders have to work hard and smartly in managing state budgets. During the heyday of Islam, Muslims also faced crises. Given that time the power of Islam mastered many areas of the world, it can be assumed that the crisis that occurred in the past was a global crisis as it is happening today. The difference is the crisis that occurred at the time because of losing the war. This paper tries to describe the historical experience of the esham, one of the fiscal instruments in the Islamic world that helped the Ottoman Empire overcome the crisis. Esham has mobilized low-cost funds from the public in a relatively concise time. Esham served as a better choice than looking for foreign debt. As the origin of sukuk, esham has simpler structure so that can be used as an alternative to sukuk with a lower cost. To deal with a crisis, esham may intervene in the economy. Esham funds to the real sector in turn will help the government drive the economy as well as control prices in the market for goods and services. Therefore, esham has the potential in facing the crisis.


Author(s):  
Yernur Mukhtar ◽  
Yuri Toluev

The relevance of this research topic lies in the fact that public procurement requires in-depth consideration and comprehensive analysis, including the scientific and methodological level of analysis. The use of special legal documents in public procurement and the specific procedure for the execution of these documents is not a factor in the full understanding of this direction, including the economic assessment of the entire process. An economic and statistical approach using system analysis is required, which was used by the authors of the scientific article as the proposed research methodology. One of the main parts of the progressive process of commodity exchange in the economies of the analyzed countries is the mechanism for building public procurement. Currently, the problem of material and technical support of public needs in developed countries is solved as a result of logistics processes in the system of public procurement through the acquisition and supply of goods, works, and services, tangible and intangible resources. The article submits a review of foreign experience in building a public procurement system with special features characteristic of this region of the world, presented as an object of research. Country aspects in the object under study and allowed the authors to formulate the relevant main results and conclusions concerning various parties in the public procurement system, which determined the further strategy to improve the procurement system of the government and international integration union. Key words: public procurement (PP), regulation of the public procurement system, government orders, entrepreneurship, international regional institutions, regulation of the public procurement system, procurement, USA, European Union (EU), Poland, Germany, World Bank.


Author(s):  
Sergei Aleksandrovich Konovalenko ◽  
Georgy Ismaylovich Harada ◽  
Nazirkhan Gadzhievich Gadzhiev

Implementation of the decisions made in the course of management of economic and socio-political development of the state causes the adequate financial flows forming the budgetary sphere of the state. The trouble in this sphere does not allow to provide the necessary level of economic growth, hampers reforming of the economy, makes negative impact on commercial and foreign economic activity, interferes with improvement of monetary and credit, tax, insurance and other spheres of the financial system of the Russian Federation. The offenses connected with corruption and theft of budget funds committed by officials at various levels significantly undermine the authority of the government, cause a growth of discontent of society and impact the social and economic situation in the country. The practice of identifying the offenses connected with theft of public funds and property shows that practically all spheres of the public sector of economy are, to a greater or lesser extent, subject to the risks of such crimes commitment. In this regard, a research of methods and ways of assessment of corruption theft amount in the public sector of the economy is an important and hot topic. The main types of public funds theft have been analyzed, including theft of budget funds allocated in the form of grants for targeted measures; theft by overcharging the prices of goods and services used for the state needs; the acquisition of inventory for personal use of the heads of public companies at the expense of the company, etc. The dynamics of the amount of budget crimes in the Ryazan region has been analyzed. It was inferred that corruption crimes in the public sector of the Ryazan region include fraud, abuse of power, abuse of authority, illegal participation in business, as well as taking bribes. A set of measures for preventing the above crimes has been proposed.


Author(s):  
I Gusti Ayu Stefani Ratna Maharani

This research is focused to identify and analyze the role of the expert information as evidence in the case of corruption. One of the criminal acts of corruption that often occurs in the government is the criminal act of corruption in goods and services procurement, in which the perpetrators have abused the social aid fund from the government. There was the case of criminal act of corruption in goods and services procurement for social aid fund that occurred in Tabanan -Bali, which committed by I Wayan Sukaja, who had corrupted the State’s financial or social aid fund. Within the process of verification in the trial, the public prosecutors submit 2 (two) experts who provided information to assist in terms of verification. This study uses normative research methods. The purpose of this study is to analyze the role of expert information as evidence in criminal act of corruption. The role of an expert cannot be ignored because it will help the judges, prosecutors and lawyers who have limited knowledge. If the expert’s information is contrary, it could be ruled out by the judges but the expert’s information that excluded must be based on clear reason, and the judges must have strong base in assess the role of the expert’s information.


2015 ◽  
Vol 13 (4) ◽  
pp. 992-1016 ◽  
Author(s):  
Eileen McDonagh

Before the welfare state, people were protected from disabilities resulting from illness, old age, and other infirmities by care work provided within the family. When the state assumes responsibility for care-work tasks, in effect it assumes parental roles, thereby becoming a form offamilial governmentin which the public provision of goods and services is analogous to care work provided in the family. My research pushes back the origins of the state’s obligation to care for people to a preindustrial form of government, hereditary monarchies—what Max Weber termed patrimonialism. It explicates how monarchs were cast as the parents of the people, thereby constituting kingship as a care work regime that assigned to political rulers parental responsibility for the welfare of the people. Using historical and quantitative analysis, I establish that retaining the legitimacy of monarchies as the first form of familial government in the course of Western European democratizing makes it more credible to the public and to political elites to accept the welfare state as the second form of familial government. That, in turn, promotes a more robust public sector supportive of social provision. The results reformulate conceptions of the contemporary welfare state and its developmental legacies.


2010 ◽  
Vol 40-41 ◽  
pp. 659-668
Author(s):  
Jin Ming Yuan ◽  
Ju Yang

The transportation is the core functional elements in the logistics activities. If not focusing on implementation of eco-friendly management in the process of logistic transportation, it is impossible to build an eco-friendly logistic system as a whole. Developed countries attach great importance to environmental issues and spare no effort in promoting the reform of logistics transportation. In order to comply with sustainable development in society and economy, China's transportation industry is urgently in need of more scientific management. Based on the relevant issues of current logistic transportation, from the perspectives of multi-subject such as the government, the enterprises and the public, this article analyzes the feasible approach to achieving the eco-friendly transportation management to ensure harmonious development of efficient transportation, social economy, environment and resources.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Farzaneh Jalali Aliabadi ◽  
Graham Gal ◽  
Bita Mashyekhi

Purpose This study aims to examine the public budgeting process in the higher education and research sectors of Iran. It focuses on the actors’ budgetary roles and uses their perspectives to identify deficiencies in the budgeting process that cause delays in the transition to a performance-based system. Design/methodology/approach This study uses an interpretive research paradigm. It applies the grounded theory methodology to analyze the interviews conducted with those responsible for budgeting at Iranian public universities and research institutes (PURI). The results are interpreted using Wildavsky’s (1964) budgetary roles paradigm. Findings Using Wildavsky’s (1964) paradigm, “spenders” and “guardians” are identified and their perceptions about the public budgeting process are described. The results suggest a decoupling between the actors’ perceptions based on their budgetary roles. Spenders consider budgeting as a negotiation-based process, while guardians’ decisions are largely based on “outputs” and “information.” This study demonstrates that the disagreement over the perceived budget process was due to different budgetary roles. This disagreement leads to delays in the transformation of the budget process in Iranian PURI. Research limitations/implications While efforts are made to obtain a sample of individuals with different roles and responsibilities, the selection is limited by subjects’ willingness and availability. Therefore, sample size and diversity are potential limitations of this study. Practical implications When organizations attempt to transition to performance-based budgeting (PBB), it is critical to understand the current budgeting process to identify potential impediments. Understanding these impediments allows for alternate approaches to be considered. This is particularly important for universities that are mostly funded by the government (such as those in Iran). The results of this study show that the contradictory perceptions among budget actors have a significant impact on budgeting transition and require attention to understand budgeting decisions. Originality/value This study contributes to the budgeting literature in three ways. First, it examines the impact of endogenized shared values among budget participants on the budgeting transition process. Second, by focusing on budgetary roles, it contributes to the literature by examining disagreement on the perceived budgeting process and its implications for transforming the process into PBB. Finally, to the authors’ knowledge, this is the first study to examine the public budgeting process in a developing country – Iran.


2020 ◽  
Vol 10 (3(S)) ◽  
pp. 1-11
Author(s):  
Wei-Bin Zhang

This paper makes an original contribution to the literature of optimal taxation by introducing Ramseytaxation to the Solow-Uzawa growth model to examine genuine dynamic interdependence between growth andoptimal taxation. We introduce a public sector to the Uzawa two-sector growth model. The public sector suppliespublic goods and services. The government financially supports by the public sector by collecting taxes on thehousehold’s wage income and wealth income under the assumption that the utility level is maximized. We derivethe optimal taxation rule and construct the dynamics of the national economy. The model studies a nonlineardynamics between national and sectoral growth, economic structural change, wealth/capital accumulation, andoptimal tax rates in perfect competitive markets with the government intervention. The model has a uniquestable equilibrium point with the chosen parameter values. We carry out comparative dynamic analysis toanalyze effects of exogenous changes in a few parameters on the transitional process and long-term economicstructure of the economic dynamics.


2018 ◽  
Vol III (III) ◽  
pp. 94-129
Author(s):  
Muhammad Zia Ur Rehman ◽  
Ahsan Rafiq ◽  
Waseem Ishaque

The paper focuses on the various aspects especially as globally accepted fact is that social and key economic indicators are influenced by the government activities. Public Sector Performance and efficiency reflect government priorities. The paper evaluates the public sector performance of Pakistan by calculating the Public Sector Performance Index based on seven indicators and these seven indicators are further classified into two broad groups. Many international studies have carried out the performance evaluation of public sectors of industrialized countries missing the public sector performance of Pakistan with other countries. With the aim, Public Sector Performance of Pakistan was compared with countries of South Asia and some developed countries. The research analyzes the public sector performance indicators of countries to calculate the overall performance. The paper aims to compare public sector performance of Pakistan with South Asian Countries and members of Organization of Economic Cooperation and Development (OECD), which currently includes 34 Countries.


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