A Country-Level Empirical Study on the Fiscal Effect of Elderly Population Health: The Mediating Role of Healthcare Resources

Demographic shifts towards an aging population are becoming a significant fiscal challenge for governments. Previous research has explored the fiscal consequences of the expanding elderly population, but the impact on the elderly’s health quality is less mentioned. The balanced relationship between elderly population health and public finance is a major concern of the global political agenda on the aging society. This article used cross-country panel data from 2000 to 2019 to examine the fiscal effect of the elderly health burden and the mediating role of healthcare resources. The results are demonstrated: The elderly health burden has a negative impact on fiscal balance, especially in aged society and longevity countries. Moreover, the mediating effect of healthcare resources is significant, whereby various forms of healthcare resources such as funds, labor, and facilities all have significant effects. Thus, the conceptual framework of elderly population health, healthcare resources, and public finance is confirmed that the elderly health burden specifically leads to the growing consumption of healthcare resources, which reduces the fiscal balance. It is concluded that reducing the elderly health burden and improving healthcare resource efficiencies are two feasible strategies to enhance fiscal sustainability.

Are Disasters a Risk to Regional Fiscal Balance? Evidence from Indonesia

Indonesia is an archipelago country and is fairly vulnerable to disasters. While disasters generally affect government revenue and expenditure, their effects likely vary by country. This study examines the effect of disasters on the fiscal balance, revenue, and expenditure of local governments. We used panel data and fixed effects methods to estimate the degree to which disaster severity influences budgetary solvency at the district and provincial levels in Indonesia between 2010 and 2018. This study revealed that disasters can strain fiscal balance at the district and provincial levels due to a decrease in own-source revenue and an increase in social assistance expenditure, capital expenditure, consumption expenditure, and unexpected expenditure. The district expenditure most threatened by disasters is consumption expenditure, while the provincial expenditure most threatened is unexpected expenditure. We also found that an increase in capital expenditure can lead to financial burden due to delays of planned projects or post-disaster reconstruction. Based on these findings, it is clear that some forms of insurance or other financing schemes are necessary to mitigate the adverse impacts of disasters on regional fiscal balance.

Post-Neoliberalism and External Financial Liberalization: Comparing Left-Wing and Right-Wing Populism

This article aims to discuss to what extent populist parties with opposite ideological backgrounds have differed in their policies towards inherited external financial liberalization (EFL). Building upon a comparative case study centred on Argentina under Kirchnerism (2003–15) and Hungary under Viktor Orbán (since 2010), I conclude that both experiences led to a partial EFL reversal. However, reflecting their opposite ideological underpinnings, each subtype of populism opted to restrict a different dimension of EFL. Argentina's left-wing populism re-regulated cross-border capital flows, harming financial operators, foreign investors and primary exporters through capital controls and export surrenders. These interventionist capital account regulations were needed to shield expansionary macroeconomic policies that attended the interests of subordinate socioeconomic strata, fuelling the tension with financial markets and domestic economic elites. Conversely, Hungary's right-wing populism focused on the ownership structure of the banking sector, aiming to redistribute assets from foreign to domestic private banks and improve the credit conditions for native capitalists. In this case, even when resorting to macroeconomic heterodoxy, the maintenance of fiscal balance and price stability retained support from both foreign investors and domestic business groups, mitigating tensions derived from financial nationalism.

Perkembangan Kemandirian Keuangan Daerah Kabupaten/Kota Di Provinsi Papua

Law Number 22 of 1999 on Local Government has changed the system of government in Indonesia to become decentralized, including those related to finance. The purpose of this study is to see the trend of financial independence in the districts/cities in West Papua Province. The measure used to assess this is the ratio of regional financial effectiveness and the degree of fiscal independence. The data used is sourced from the Directorate General of Fiscal Balance, Ministry of Finance of the Republic of Indonesia period 2010 – 2019. The results of the analysis show that the financial effectiveness ratio of districts/cities in West Papua Province has been very effective. However, the degree of fiscal independence shows the opposite condition, where all districts/cities in West Papua Province are still in “belum mandiri” category.

The Determinants of Green Bond Issuance in the European Union

Green bonds are a new financial tool that has developed rapidly in the context of climate change risks. Their proceeds are used to finance only environmentally friendly projects. This paper aims to examine the determinant factors of the green bonds issue in the context of the European Union countries. Using linear regression, we explore the impact of environmental, social, governance, and macroeconomic indicators on the level of green bond issues in the period 2014–2019. The results reveal that rating, ESG index; fiscal balance, inflation rate, and population have a significant impact and lead to a higher volume of green bond issuances. Our findings provide valuable insights into the development of the green bond market.