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on Public Economics |
| By: | Diego Martínez López (Centro de Estudios Andaluces y Universidad Pablo de Olavide) |
| Abstract: | Literature describes a positive effect of public investment on private capital accumulation. This paper seeks to provide new empirical evidence on this latter relationship for the case of Spanish regions over period 1965-1997. We use a crowding-out theoretical framework and panel data methodology. The results show a positive effect of productive and social public investment (especially in education) on private investment. The spillover effects generated by productive infrastructures located in other regions do not seem to encourage private investment in neighbouring regions. Public consumption and interest rate exert a negative influence on private capital accumulation. These results are robust to changes in the econometric specification. |
| Keywords: | Crowding-out, regional economics, investment, panel data. |
| JEL: | R53 H54 E62 C33 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:cea:doctra:e2001_04revision&r=pbe |
| By: | Amalia Morales Zumaquero (Universidad de Málaga); Simón Sosvilla Rivero (FEDEA y Universidad Complutense de Madrid) |
| Abstract: | This paper analyses whether volatility changes in the bilateral and effective real exchange rates of the OECD industrial countries are associated with a specific nominal exchange rate regime. To that end, we examine the real exchange rate behaviour during the 1960-2003 period, therefore covering both the Bretton Woods system of fixed exchange rates and adoption of generalised floating exchange rates from 1973. We make use of an econometric methodology based on the Hansen (1997)'s approximation to the p-values of the supreme, exponential and average statistics developed by Andrews (1993) and Andrews and Ploberger (1994). This methodology allows us to obtain a profile of p-values and to delimit periods of stability and instability in the variance of real exchange rates. Results suggest that there is evidence in favour of the non-neutrality of nominal exchange rate regime regarding real exchange rate volatility. |
| Keywords: | Exchange rate regimes, real exchange rate, volatility |
| JEL: | F31 F33 F41 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:cea:doctra:e2005_01&r=pbe |
| By: | Diego Martínez-López (Centro de Estudios Andaluces y Univesidad Pablo de Olavide) |
| Abstract: | This paper discusses how the state government's behavior is affected when the so-called Representative Tax System (RTS) equalization scheme is implemented. In particular, we study the changes in the marginal cost of the public funds (MCPF), and in the first order conditions for the optimal provision of a public input. A reduction in the MCPF is to be expected when lump-sum grants are replaced by RTS equalization transfers. However, this result has to be qualified under certain assumptions. Also we find that there does not exist an unambiguous relationship between the degree of fiscal equalization and the marginal cost of providing the public input and the tax setting. Production efficiency condition in the provision of public inputs holds with both types of vertical transfers. |
| Keywords: | Fiscal federalism, MCPF, vertical transfers. |
| JEL: | H71 H72 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:cea:doctra:e2005_03&r=pbe |
| By: | Matthieu Arseneau; Luc Godbout; Jean-Herman Guay |
| Abstract: | This paper analyses a survey undertaken by the polling firm CROP between the 20th and the 31st of January 2005. The 21 questions presented in this study concern the Quebec population's perception of fiscal issues. Several issues are examined such as budgetary choices and fiscal administration as well as the size of the tax burden and it's distribution among the various tax brackets. As well as analysing the survey results, the authors contribute to the debate by presenting additional relevant information on these issues. Primarily, the results show a general consensus within the Quebec population on major issues. In fact, there is no major ideological division. Moreover, the authors detect a degree of ambiguity in that those polled want a reduction of the Quebec tax burden and, at the same time, wish to see eventual surpluses serve to increase spending on social services. The results show that, the Quebec population is most favourably inclined towards taxes when the allocation of resources thus raised is clearly defined. In this regard, the Quebec population would even favour, in certain cases, an increase in the consumption tax (TVA) if the proceeds were to finance policies they prioritize. Finally, even though an important proportion of the population pay little or no income tax, those polled believe that, on the whole, low and middle incomes individuals are taxed too heavily and that high income individuals are not sufficiently taxed. <P>Cette étude présente l’analyse des résultats d’un sondage réalisé par la firme CROP du 20 au 31 janvier 2005. Les 21 questions présentées dans ce document portent sur la perception des Québécois à l’égard de l’imposition. Principalement, ce sondage aborde les thèmes tels que les choix budgétaires, la façon d’administrer les impôts et la question du fardeau fiscal et de sa répartition. Outre l’analyse des résultats du sondage proprement dite, les auteurs enrichissent le débat par la présentation d’informations reliées aux différents thèmes abordés. À la lumière des résultats du sondage, les auteurs observent dans un premier temps que les Québécois s’entendent généralement sur les grands enjeux. En effet, rares sont les questions sur lesquelles la population est clairement divisée. De plus, les auteurs ont décelé une équivoque chez les répondants puisque ces derniers veulent à la fois voir le fardeau fiscal au Québec être réduit tout en orientant les éventuels surplus vers une augmentation des programmes sociaux. En effet, ils constatent que les impôts sont beaucoup mieux perçus quand le but est clairement spécifié. À cet égard, les Québécois seraient même, dans certains cas, favorables à l’augmentation de la TVQ si les recettes générées par cette hausse étaient allouées à leur priorité. Finalement, même si un grand nombre de contribuables ne paient pas ou très peu d’impôt sur le revenu, les répondants considèrent dans l’ensemble que les individus à faibles et moyens revenus en paient trop alors que les individus ayant de hauts revenus n’en paient pas assez. |
| Keywords: | survey, Quebec, tax policy, tax burden, sondage, Québec, politique fiscale, fardeau fiscal |
| JEL: | H2 H5 |
| Date: | 2005–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2005s-16&r=pbe |
| By: | Cécile Carpentier; Jean-Marc Suret |
| Abstract: | We analyse the American Small Business Investment Companies (SBIC) program designed to help small and medium sized businesses find venture capital. SBICs are private entities that may be financed by the Small Business Administration under favourable conditions. The success of this program should inspire public policy makers in other countries. Indeed, SBICs have financed numerous traditional and high tech SMEs at a low or zero cost for the government. The rules of government intervention are very similar to those of private financing. The program rests on strong governance, clear rules and stakeholder accountability. The SBA is powerful and the SBICs are stringently governed. The private status of SBICs, their sizeable initial funding, the third party certifying the quality of the project and officers with proven management capacity may explain the success of the program. <P>Nous analysons le programme américain des Small Business Investment Companies (SBIC), destiné à aider les PME à trouver du capital de risque. Les SBICs sont des entités entièrement privées ayant la possibilité de se refinancer dans des conditions favorables auprès de la Small Business Administration (SBA). Ce programme peut être considéré comme un succès et devrait inspirer les décideurs d’autres pays. Les SBICs ont en effet permis des financements nombreux de petites et moyennes entreprises traditionnelles et de haute technologie, à un coût faible ou nul pour le Gouvernement. L’intervention se fait suivant des règles qui sont proches de celles qui prévalent sur le marché privé. Le programme repose sur un système de gouvernance solide, des règles claires et la responsabilisation des acteurs. Le pouvoir de la SBA est important, et la régie interne des SBICs est forte. Le caractère largement privé des SBICs associé à une capitalisation initiale relativement importante, à la présence d’une tierce partie certifiant la qualité du projet, et à la qualité de gestion des dirigeants contribuent également au succès de ce programme. |
| Keywords: | public policy, small business, financing, SBIC, governance, : politique publique, petites entreprises, financement, SBIC, gouvernance |
| Date: | 2005–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2005s-15&r=pbe |
| By: | Matthieu Arseneau; Luc Godbout; Jean-Herman Guay |
| Abstract: | This paper analyses two questions of a survey undertaken by the polling firm CROP between the 20th and 31st of January 2005. The questions presented in this paper on polling concern Quebec’s perception of fiscal imbalance. “Fiscal imbalance” is the idea that the federal government disposes of too much revenues considering it responsibilities while the situation is the opposite with regard to provincial governments. The first question seeks to determine the adhesion of Quebec’s population to this idea and the second is about the idea of transferring fiscal spaces to the provincial governments. The authors also present the answers to these questions by linguistic affiliation and political allegiance of those polled. Among others things, the authors observe that in spite of billions of dollars having been transferred to provincial governments through the 2004 health agreement, the idea of fiscal imbalance has gained ground among Quebec’s population since the period of the Fiscal Imbalance Commission activities (2002). Moreover, a high proportion of the population subscribes to the principal recommendation of the Commission which was the transfer of fiscal “spaces” to the provincial governments. <P>Cette étude présente l’analyse des résultats de deux questions d’un sondage portant sur les finances publiques réalisé par la firme CROP du 20 au 31 janvier 2005. Celles-ci portent sur le déséquilibre fiscal, c’est-à-dire l’idée que le gouvernement fédéral au Canada perçoit trop de revenus par rapport à ses responsabilités alors que ce serait l’inverse pour les gouvernements provinciaux. La première question vise à déterminer dans quelle proportion les répondants adhèrent à cette idée. La seconde entend déterminer dans quelle mesure les répondants sont enclins à un transfert de points d’impôt en vue de remédier à ce problème. En plus d’analyser les résultats globaux des réponses à ces questions, les auteurs accordent aussi une attention aux résultats en fonction de la langue et l’allégeance politique des répondants. Entre autres, les auteurs affirment que malgré les milliards provenant de la récente entente sur la santé, l’appui à l’idée d’un déséquilibre fiscal est désormais plus fort qu’il l’était au moment où la Commission sur le déséquilibre fiscal siégeait. De plus, ils constatent qu’une forte proportion des répondants soutient la principale recommandation de son rapport qui consiste au transfert de points d’impôt. |
| Keywords: | fiscal federalism, fiscal imbalance, survey, Quebec, fédéralisme fiscal, déséquilibre fiscal, sondage, Québec |
| JEL: | H77 |
| Date: | 2005–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2005s-19&r=pbe |
| By: | Javier Ferri; María Luisa Moltó; Ezequiel Uriel |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaeee:202&r=pbe |
| By: | Philippe Aghion; Alberto Alesina; Francesco Trebbi |
| Abstract: | This paper studies the choice of electoral rules, in particular, the question of minority representation. Majorities tend to disenfranchise minorities through strategic manipulation of electoral rules. With the aim of explaining changes in electoral rules adopted by US cities (particularly in the South), we show why majorities tend to adopt "winner-take-all" city-wide rules (at-large elections) in response to an increase in the size of the minority when the minority they are facing is relatively small. In this case, for the majority it is more effective to leverage on its sheer size instead of risking to concede representation to voters from minority-elected districts. However, as the minority becomes larger (closer to a fifty-fifty split), the possibility of losing the whole city induces the majority to prefer minority votes to be confined in minority-packed districts. Single-member district rules serve this purpose. We show empirical results consistent with these implications of the model. |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11236&r=pbe |
| By: | Martin Feldstein |
| Abstract: | This paper begins by discussing the nature of and rationale for social insurance programs. I then consider three political principles and four economic principles that could guide the design and reform of social insurance programs. These ideas are then applied to unemployment insurance, Social Security pensions, health insurance and Medicare. A common theme is the advantage of incorporating investment based personal accounts in each of these programs. |
| JEL: | H5 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11250&r=pbe |