Fiscal Consolidation in German and Greek Municipalities: The Interplay of Leadership and Legitimacy

2016 ◽  
Vol 14 (4) ◽  
pp. 893-916
Author(s):  
Philipp Stolzenberg ◽  
Panagiotis Getimis
Keyword(s):  
Fiscal Policy ◽  
Leadership Styles ◽  
Three Dimensions ◽  
Fiscal Policies ◽  
Fiscal Consolidation ◽  
Institutional Structures ◽  
Output Legitimacy

This article assesses the interplay between different leadership styles and three dimensions of legitimacy (input-, throughput- and output-legitimacy). In four German and six Greek cities, we investigate the role of mayors and treasurers in fiscal consolidation policy. We can explain different outcomes of fiscal policy with different institutional structures between the two countries, but we found also remarkable differences within the countries, especially in Greek municipalities, which are related to different leadership styles. However, we also show that different leadership styles can result in sufficient output-legitimacy of fiscal policies.

Evaluation of Fiscal Policy Effect of China’s Photovoltaic Industry

2018 ◽  
pp. 111-116 ◽  
Author(s):  
Gang AN ◽  
Hang WANG
Keyword(s):  
Fiscal Policy ◽  
Research And Development ◽  
Operating Performance ◽  
Fiscal Policies ◽  
Micro Data ◽  
Policy Effect ◽  
Policy Suggestions ◽  
Asset Size ◽  
The Empirical Analysis

To explore the role of fiscal policies in promoting the development of photovoltaic industry, the effects of financial subsidies on the development of China’s photovoltaic industry were analyzed by using the micro data of listed companies. The empirical analysis results in this study indicate that the fiscal policies represented by financial subsidies play a remarkable positive impetus function and financial subsidies are positively correlated with the operating performance of Photovoltaic enterprises. With larger the asset size and higher the Research and Development (R&D) investments, the operating performance of Photovoltaic enterprises is the better. Based on the above results, this study puts forward some policy suggestions on optimizing fiscal policy tools and further promoting the development of photovoltaic industry.

CRIME AND FISCAL POLICY IN EUROPE: THE EFFECT OF SHADOW ECONOMY

2020 ◽  
Vol 20 (03) ◽  
pp. 2050017
Author(s):  
ELEFTHERIOS GOULAS ◽  
SOCRATES KARIDIS
Keyword(s):  
Fiscal Policy ◽  
Violent Crime ◽  
Shadow Economy ◽  
Criminal Activity ◽  
Crime Rates ◽  
Fiscal Policies ◽  
Economic Activities ◽  
Mitigating Factor ◽  
Positive Effect

We empirically investigate the role of fiscal policies on criminal activity using a sample of 25 EU countries over the period 2000–2013. Our analysis indicates that tight fiscal policies appear to have a positive effect on crime. This effect becomes stronger when property (non-violent) crime rates are considered. Further, the presence of high levels of shadow economy in a country provides a very strong mitigating factor on the adverse effect of public policies on crime. The initially strong link between tight fiscal policy and non-violent crime weakens significantly in the presence of undocumented economic activities which compensate for the lack of formal economic opportunities.

Distributional Consequences of Fiscal Consolidation and the Role of Fiscal Policy: What Do the Data Say?

2013 ◽  
Vol 13 (195) ◽  
pp. 1 ◽  
Author(s):  
Jaejoon Woo ◽  
Elva Bova ◽  
Tidiane Kinda ◽  
Yuanyan Sophia Zhang ◽  
◽  
...  
Keyword(s):  
Fiscal Policy ◽  
Fiscal Consolidation ◽  
Distributional Consequences

scholarly journals The Impact of the Great Recession on Monetary and Fiscal Policy in Developed Market Economies

2015 ◽  
Vol 6 (1) ◽  
pp. 56-71 ◽  
Author(s):  
Damir Šehović
Keyword(s):  
Fiscal Policy ◽  
Great Recession ◽  
Fiscal Policies ◽  
Market Economies ◽  
The Great Recession ◽  
The Great Depression ◽  
Theoretical Assumptions ◽  
Monetary And Fiscal Policy ◽  
The Impact

Abstract Background: With the occurrence of the crisis in 2007, which caused the largest economic contraction since the Great Depression in the thirties, it has become evident that the previous understanding of strategies, effects and roles of monetary and fiscal policy should be redefined. Objectives: The aim of this paper is to illustrate a possible expected change in monetary and fiscal policy in developed market economies that could occur as a consequence of the Great Recession. Methods/Approach: The paper provides a comparative analysis of various primary economic variables related to the developed OECD countries, as well as the empirical testing of the selected theoretical assumptions. Results: The changes in monetary policy refer to the question of raising target inflation, considering a possible use of aggregate price level targeting and paying attention to the role of central banks in suppressing the formation of an asset bubble. The success of fiscal policy in attaining stabilization depends on the size of possible fiscal measures and creation of automatic stabilizers. Conclusions: For the most part, monetary and fiscal policies will still stay unchanged, although some segments of these policies need to be improved.

scholarly journals Fiscal performance in monetary unions: How much austerity should be allowed?

2017 ◽  
Vol 64 (1) ◽  
pp. 61-76 ◽  
Author(s):  
Carmen Díaz-Roldán
Keyword(s):  
Fiscal Policy ◽  
Central Bank ◽  
Sovereign Debt ◽  
Initial Level ◽  
Debt Crisis ◽  
Fiscal Rules ◽  
Fiscal Policies ◽  
Fiscal Consolidation ◽  
Monetary Unions ◽  
Fiscal Discipline

The effectiveness of fiscal policy becomes particularly relevant in the case of the member countries of a monetary union facing a sovereign debt crisis. In that environment, fiscal policy is constrained by the need to carry out fiscal consolidation and reduce debt levels. For that reason and with the purpose of anchoring fiscal discipline, the adoption of fiscal rules has become a central issue. In this paper we will analyse the management of fiscal policies in monetary unions, when the central bank and the fiscal authorities follow policy rules. The results are related to the conservativeness of the central bank, the degree of austerity of the fiscal authorities and the initial level of public debt.

scholarly journals Demand effects of fiscal policy since 2008

2019 ◽  
Vol 7 (1) ◽  
pp. 57-74 ◽  
Author(s):  
Engelbert Stockhammer ◽  
Walid Qazizada ◽  
Sebastian Gechert
Keyword(s):  
Fiscal Policy ◽  
Fiscal Policies ◽  
Fiscal Multipliers ◽  
The Great Recession ◽  
The Usa ◽  
Demand Effects ◽  
The Uk ◽  
Open Question ◽  
The Impact

The Great Recession of 2007–2009 has led to controversies about the role of fiscal policy. Academically this has translated into renewed interest in the effects of fiscal policy. Several studies have since suggested that fiscal multipliers are substantially larger in downswings or depressions than in upswings. In terms of economic policy reactions, countries have differed substantially in their fiscal stance. It is an important open question how big the impact of these policies on economic growth has been. The paper uses the regime-dependent multiplier estimates by Qazizada and Stockhammer (2015) and by Gechert and Rannenberg (2014) to calculate the demand effects of fiscal policy for Germany, the USA, the UK, Greece, Ireland, Italy, Portugal and Spain since 2008. This allows us to assess to what extent fiscal policy explains different economic performances across countries. We find expansionary fiscal policy in 2008–2009 in all countries, but since 2010 fiscal policies have differed. While the fiscal effect was roughly neutral in Germany, the UK and the USA, it was large and negative in Greece, Ireland, Italy, Portugal and Spain.

scholarly journals Non-Linearities in Fiscal Policy

2020 ◽  
Vol 20 (246) ◽  
Author(s):  
Alexandra Fotiou
Keyword(s):  
Fiscal Policy ◽  
Economic Activity ◽  
Public Expenditure ◽  
Initial Level ◽  
State Dependence ◽  
Fiscal Consolidation ◽  
Fiscal Multipliers ◽  
The Business Cycle ◽  
The Empirical Analysis

Empirical evidence shows that fiscal multipliers depend on the state of the cycle, the nature of fiscal policy and the level of debt. In other words, evidence points to non-linearities in the effects of fiscal policy. This paper provides a framework to examine the role of the level of government debt in the assessment of consolidation policies across the business cycle, allowing for the consolidation multiplier to depend on the level of debt at the time of consolidation. The empirical analysis, which uses a panel of 13 countries between 1980 and 2014, finds that when debt is high, fiscal consolidations based on tax increases are in general self-defeating, in that they result in an increase of the debt-to-GDP ratio. Instead, cutting public expenditure has a less pronounced effect on economic activity and can stabilize debt. The initial level of debt in an economy, when a fiscal consolidation is implemented, appears to work as a channel in explaining evidence of state-dependence of the different consolidation instruments.

scholarly journals The Interaction of Monetary and Fiscal Policy in the Countries of the Visegrad Group

2014 ◽  
Vol 62 (2) ◽  
pp. 373-381
Author(s):  
Jan Janků ◽  
Stanislav Kappel
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Interest Rates ◽  
Dominant Role ◽  
Multivariate Regression Analysis ◽  
Successful Implementation ◽  
Fiscal Policies ◽  
The Government ◽  
Visegrad Group

Coordination of or at least absence of conflict between monetary and fiscal policies are key to the successful implementation of economic policy. The article aims to use reaction functions to assess whether the monetary and fiscal policies in the countries of the Visegrad Group are in coordination or in conflict and which variables influence their decisions. The central bank is the representative of monetary policy, which has interest rates as its instrument, and the government as the representative of the fiscal policy which has change revenue or spending as a share of GDP as instrument. To obtain the results, multivariate regression analysis is used. The research period is based on quarterly observations from first quarter of 2000 to the fourth quarter of 2012. Stabilizing role of monetary policy and in some countries also partially stabilizing role of fiscal policy has been found. Another result was that in the case of the Czech Republic, Slovakia and Poland, monetary policy appears to play the dominant role, whereas fiscal policy plays dominant role in Hungary. In the case of Slovakia, some different results may be due to Slovakia’s participation in ERM II, which led to the monetary policy, in addition to maintaining price stability, also aiming to maintain a fixed exchange rate and the subsequent entry of Slovakia into the Eurozone and the de facto loss of autonomous monetary policy.

scholarly journals The impact of fiscal policies on corruption: A panel analysis

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Monica V. Achim ◽  
Sorin N. Borlea ◽  
Andrei M. Anghelina
Keyword(s):  
Developing Countries ◽  
Fiscal Policy ◽  
Developed Countries ◽  
Fiscal Policies ◽  
Panel Analysis ◽  
Policy Makers ◽  
The Right ◽  
Fiscal Pressure ◽  
The Impact

This article seeks to complement the previous literature and clarify whether fiscal policy plays a role in the level of corruption of a country. The present work investigates whether the increase in fiscal pressure leads to a higher level of corruption and whether the results differ from developed to developing countries. This article examines a large sample consisting of over 185 countries, during the period 2005–2014. The technique employed was short panel data. Five statistical models were used such as the pooled OLS, pooled FGLS, within model, between model and random-effects GLS model. Our main contribution consists in finding differentiated results of the influence of fiscal policy on the level of corruption among developed and developing countries. For developed countries, we found that, with high-quality institutions, low fiscal pressure leads to a lower level of corruption, which is in line with expectations. Conversely, in developing countries, with low-level institutional quality, low fiscal pressure increases corruption, because of low governance efficiency under which people may easily circumvent the law. Our findings suggest that governments and policy-makers need to acknowledge that the anti-corruption fight requires not only the right fiscal policies but also the right way of implementing these policies, recognising the role of quality institutions, which need to prevail in any country.

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