Crowding in or crowding out? How local government debt influences corporate innovation for China

The pressure upon local governments to redeem their debt could affect government fiscal ability. It could consequently affect their fiscal policies on corporations, which might distort corporate innovation. Based on the data of Chinese Shanghai and Shenzhen A-share listed companies and the local government implicit short-term debt financed by local government financing vehicles (LGFVs) in 31 provinces, this paper shows that local government debt (LGD) negatively affects corporate R&D investment in China, thereby suggesting a strong crowding-out effect. The crowding-out effect is more pronounced when the firm is a non-state-owned enterprise (NSOE), the firm’s size is small, the firm’s age is young, or the firm is in the lower market competition. This paper provide evidence by interacting the terms that local government actions, such as consumption of fiscal resources, strengthening tax collection efforts, or consumption of credit resources, might partially account for the crowding-out effect. This study illustrates the innovation costs of local government debt.

The Flypaper Effect and Desirable Legislative Changes to Local Government Financing Systems

A substantial portion of local government funding in Poland comes from intergovernmental transfers. It may lead to the flypaper effect, which means that external revenues contribute to greater local government spending than locally-collected revenues. This study analyses how different revenue categories influenced local government spending in Poland between 2009 and 2018. Panel econometric models are used to test a hypothesis about whether the flypaper effect occurred in that period and to identify the potential causes. The results confirm to some extent that all three levels of local government were affected by the flypaper effect, and they point to intergovernmental transfers (general grants, specific grants, and shares of corporate income tax revenue) as the main causes. The research findings can be of use in reforming local government funding legislation in Poland and other countries, especially when the size of the public sector and public spending need to be reduced.

Efficiency of Indigenous and Intercultural Higher Education and Research Programs

A study was carried out using data envelopment analysis, in which variables (inputs and outputs) of a group of 13 public HEIs from the northwest of the country were compared with data from the 2018-2019 cycle to characterize the UAIM. It was found that 1) when considering government financing and generated own resources, UAIM has an efficiency of 39%; 2) when considering ordinary financing and tuition, the institution is 100% efficient; 3) in relation to the total number of teachers and enrollment has an efficiency of 39%, it has the capacity to serve up to 14,325 students; 4) it has an efficiency of 26% in relation to the total and accredited educational programs; and 5) the total efficiency is 51% and represents an intermediate level with respect to the other HEIs, which on average is 56%.

Does a job guarantee pay off? The fiscal costs of fighting long-term unemployment in Austria

The idea of a job guarantee (JG) to tackle unemployment has become popular again over recent years. Critics often point to the fiscal costs and the macroeconomic impact of a government financing full employment. In this paper, we analyse the fiscal costs of a JG for long-term unemployed people over the age of 45 in Austria. We show that a JG pays off in the long run. Even if the amount of jobs to be provided increases in times of a recession, or if a government starts with a certain amount of jobs and increases it afterwards, the JG would pay for itself.

Perceptions of Micro, Small and Medium Entrepreneurs on the Importance of Fair Presentation of Financial Statements with the Implementation of SAK EMKM as a Moderation Variable

The ability of Micro, Small and Medium Enterprises (SME) in surviving in the midst of a crisis shows that this group is far more independent than large entities that generally rely on banking in terms of funding and operations. The contribution of SME in the government's trade balance is indicated by the amount of contribution to gross domestic product (GDP). The presence of SME that has not been incorporated is one of the problems that must be addressed, this is because without a difficult legal entity for an SME to take advantage of government financing facilities. In addition, it is difficult for SME to obtain external financial resources, this is because SME often cannot show financial reports that are in accordance with Financial Accounting Standards in Indonesia (FAS). The implementation of the FAS for SME in Indonesia is an effort to make it easy for SME enterprises for each transaction they make. The application of the EMKM SAK makes it easy for SME entrepreneurs to present financial reports in accordance with the Indonesian GAAP in force

Perceptions of Micro, Small and Medium Entrepreneurs on the Importance of Fair Presentation of Financial Statements with the Implementation of SAK EMKM as a Moderation Variable

The ability of Micro, Small and Medium Enterprises (SME) in surviving in the midst of a crisis shows that this group is far more independent than large entities that generally rely on banking in terms of funding and operations. The contribution of SME in the government's trade balance is indicated by the amount of contribution to gross domestic product (GDP). The presence of SME that has not been incorporated is one of the problems that must be addressed, this is because without a difficult legal entity for an SME to take advantage of government financing facilities. In addition, it is difficult for SME to obtain external financial resources, this is because SME often cannot show financial reports that are in accordance with Financial Accounting Standards in Indonesia (FAS). The implementation of the FAS for SME in Indonesia is an effort to make it easy for SME enterprises for each transaction they make. The application of the EMKM SAK makes it easy for SME entrepreneurs to present financial reports in accordance with the Indonesian GAAP in force