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1 – 10 of 221
Article
Publication date: 22 June 2021

Patricia Kako Ouraga

This paper investigates the joint relationship between economic growth, income inequality and fiscal adjustments using a panel of 47 Japanese prefectures from 1998 to 2017.

Abstract

Purpose

This paper investigates the joint relationship between economic growth, income inequality and fiscal adjustments using a panel of 47 Japanese prefectures from 1998 to 2017.

Design/methodology/approach

To assess jointly fiscal adjustment impacts on growth and inequality and to take into account the interdependence between these variables, the authors use a simultaneous equation model and estimate it by using the three-stage least squares estimation method.

Findings

The results show evidence of a trade-off between growth and inequality through fiscal adjustments. They reveal that first, fiscal adjustments have contractionary effects on growth. Second, they highlight the disparity between urban and rural taxpayers. Third, they provide evidence of a trade-off between fiscal adjustments and inequality through the labor market.

Research limitations/implications

Based on the literature, the composition of fiscal adjustments is a crucial factor in analyzing fiscal adjustment impacts on economic growth and income inequality. The authors do not consider this aspect in the analysis; however, fiscal policy outcomes variables are included as a workaround for this.

Practical implications

These results suggest that authorities favor expenditure-based adjustments as they are less contractionary on the economy. Moreover, they should finance public expenditures through a tax on capital in order to mitigate fiscal adjustment impacts on inequality while promoting growth.

Originality/value

The paper is novel in testing the existence of a trade-off between economic growth and income inequality through fiscal adjustments at a sub-national level with an additional focus on urban and rural regions.

Details

Journal of Economic Studies, vol. 49 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 18 April 2017

Juan Ignacio Pulido-Fernández, Pablo Juan Cárdenas-García and Isabel Carrillo-Hidalgo

The purpose of this paper is to examine, through a microeconomic analysis, the extent to which trip characteristics influence tourism expenditure in 14 emerging urban-cultural…

Abstract

Purpose

The purpose of this paper is to examine, through a microeconomic analysis, the extent to which trip characteristics influence tourism expenditure in 14 emerging urban-cultural cities in Andalusia (Spain).

Design/methodology/approach

This analysis was carried out using an ordinary least squares method, which measures influence on tourism expenditure based on the trip characteristics of tourists visiting emerging urban-cultural cities. For this, the authors used 3,030 surveys conducted on tourists who, in 2013, visited 14 emerging urban-cultural cities in Andalusia (Spain).

Findings

It was confirmed that certain trip characteristics – type of accommodation, length of stay, trip planning and internet use – determine tourism expenditure in these destinations. The findings provide stakeholders in these destinations with information for the implementation of policies aiming to increase revenue in destinations where tourism development levels are still in their infancy and where, therefore, there are many unexploited opportunities.

Originality/value

First, this study identifies those trip characteristics which influence tourist expenditure in emerging urban tourist destinations. These destinations, to date, had not been previously analysed in expenditure segmentation studies. Second, aside from the factors traditionally analysed in scientific literature, other trip-specific variables were considered; these relate to the means by which tourists familiarise themselves with their destination and the way in which they plan their trip (use of the internet), as the rise of new technologies has radically changed tourism.

Article
Publication date: 1 March 2007

Luis Tineo

This paper focuses on the World Bank's emerging experience with a promising application of performance-based contracts: Output-Based Aid (OBA) subsidies. OBA is the provision of…

Abstract

This paper focuses on the World Bank's emerging experience with a promising application of performance-based contracts: Output-Based Aid (OBA) subsidies. OBA is the provision of subsidies for the delivery of and access to social or infrastructure services. Under OBA, subsidy payments are tied to measurable performing outputs, leaving the specific methods of achieving these outputs to the service provider's discretion. While creating better risk allocation, more value for users and contracting agencies, and fewer opportunities for corruption than traditional methods, OBA schemes raise new procurement issues that need to be reconciled in order to achieve optimal results. An issue this paper explores is the tension between the need that contracts be "expenditure-based" with the "performance-based" nature of OBA subsidies.

Details

Journal of Public Procurement, vol. 7 no. 1
Type: Research Article
ISSN: 1535-0118

Open Access
Article
Publication date: 27 June 2023

Antti Norkio

Intangible capital (IC) is an important factor for economic growth and firm performance. The role IC has played has become even more crucial in recent decades, possibly…

Abstract

Purpose

Intangible capital (IC) is an important factor for economic growth and firm performance. The role IC has played has become even more crucial in recent decades, possibly influencing debt capacity and default risk assessment. This paper studies how entrepreneurial and employee-based IC affects financial leverage.

Design/methodology/approach

Employer–employee unbalanced panel data provided by Statistics Finland that refer to Finnish small and medium-sized enterprises (SMEs) are used. Intangibles are measured with an expenditure-based method. Employee-based IC and entrepreneurial knowledge are used to explain debt financing in SMEs.

Findings

The findings imply that IC-intensive firms have less debt capacity due to weak pledgeability and asymmetric information between borrower and lender. Entrepreneurs with managerial or financial knowledge increase the firm's debt capacity compared to other entrepreneurs, especially in knowledge-intensive services (KIS). One explanation is that the entrepreneurs are more competent in negotiating with lenders as the entrepreneurs possess better financial skills. Entrepreneurs with technical knowledge decrease the firm's debt capacity in all industries.

Originality/value

While some earlier research focused on the IC–financial leverage relationship, hardly any study has looked at entrepreneurial IC. This paper provides new insights by including entrepreneurial IC alongside employee-based IC.

Details

Managerial Finance, vol. 50 no. 2
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 14 May 2018

Wen Chen

The purpose of this paper is to understand the recent developments and trends of intangible investment in Egypt and South Africa.

Abstract

Purpose

The purpose of this paper is to understand the recent developments and trends of intangible investment in Egypt and South Africa.

Design/methodology/approach

This paper follows the framework pioneered by Corrado, Hulten and Sichel (2005, 2009) and measures investments in scientific R&D, organizational capital, and brand equity using the expenditure-based approach.

Findings

The main findings are that South Africa invests consistently and considerably more in intangible assets than Egypt. Among the three intangible assets examined, namely, scientific R&D, organizational capital, and brand equity, South Africa seems to invest more evenly across these assets, whereas intangible investment in Egypt is predominantly driven by investment in brand equity and very little in R&D.

Originality/value

This is the first paper to formally examine intangible investment in African countries. The ballpark estimate provided in this study is a useful step forward in understanding the trends of intangible investment in Egypt and South Africa.

Details

Journal of Intellectual Capital, vol. 19 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 1 March 1998

Jenifer Ehreth

The State of Washington’s Mental Health Division (MHD) is the State agency responsible for providing state sponsored mental health services. In 1993, the MHD received a Health…

Abstract

The State of Washington’s Mental Health Division (MHD) is the State agency responsible for providing state sponsored mental health services. In 1993, the MHD received a Health Care Financing Administration (HCFA) waiver to implement a statewide system of managed care for outpatient mental health rehabilitation services. Payments were to be prepaid and capitated and based on the numbers of clients in each of at least 3 payment tiers. This paper describes financial findings from a HCFA-mandated evaluation of the waiver. It looks at payment rates for children and adults, by tier, and for separately rated groups such as the categorically needy, medically needy, and disabled clients. Three types of State expenditures are compared in this paper: predicted expenditures based on actuarial projections, expenditures made on the basis of service utilization, and expenditures made after being adjusted for over payment controls. Expenditure predictions were consistently lower than actual expenditures, even after adjustments for over payment.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 10 no. 4
Type: Research Article
ISSN: 1096-3367

Article
Publication date: 1 February 1981

T. RITSON FERGUSON

The fundamental problem of designing a wide scope general revenue tax can be reduced to the selection of the base used for administering the tax. Our current personal income tax…

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Abstract

The fundamental problem of designing a wide scope general revenue tax can be reduced to the selection of the base used for administering the tax. Our current personal income tax is a hybrid version of a tax assessed on the basis of a tax unit's annual income receipts. An alternative to an income‐based tax that has received much theoretical treatment but little actual application is an expenditure‐based tax. An expenditure tax (also called a consumption tax or cash flow tax in the context of this paper) differs from an income tax in that it exempts net saving and investment from the tax base. Though the details of a consumption tax design are discussed more fully elsewhere in this paper, the tax base of an expenditure tax is roughly determined by subtracting net savings from gross receipts (including wages, tips, salaries, income from investments, interests, etc.). Withdrawals from savings constitute dissavings and are appropriately included in net savings. The cash flow tax, with wealth transfers deductible to the donor and included in the tax base of the recipient, would be a tax on an individual's standard of living. Similar to the present income tax standard deduction, some universal credit or exemption for a small level of consumption could be allowed.

Details

Studies in Economics and Finance, vol. 5 no. 2
Type: Research Article
ISSN: 1086-7376

Article
Publication date: 18 April 2017

João Tovar Jalles

The purpose of this paper is to empirically examine the relationship between fiscal consolidations and changes in income distribution.

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Abstract

Purpose

The purpose of this paper is to empirically examine the relationship between fiscal consolidations and changes in income distribution.

Design/methodology/approach

Looking at a sample of 27 emerging market economies between 1980 and 2014, the authors resort to both static panel techniques as well as dynamic impulse response function analysis using local projection methods to uncover the direct impact of adjustments on inequality.

Findings

The authors find that fiscal consolidations tend to lead to an increase in income inequality and reduce the redistributive role of fiscal policy. Spending-based consolidations are more detrimental to income distribution than tax based ones and fiscal retrenchment during bad times raises inequality. In times of fiscal expansion inequality seems to rise in the medium term and this effect is larger if the economy is booming.

Research limitations/implications

The distributional effects of consolidation, i.e. whether consolidation can confer benefits, must be balanced against the potential longer term benefits. It should be recognized that there is scope for improving the targeting and efficiency of public programs and that fiscal adjustments would not unavoidably run into such an efficiency vs equity trade-off.

Originality/value

The paper, applying a consistent methodology, documents the set of fiscal episodes emerging market economies experienced over time. The authors empirically examine both the static and dynamic links between fiscal consolidation and inequality. Since composition matters, the authors explore how spending and tax-based fiscal consolidations affect income distribution. The authors conduct several robustness checks including the use of alternative income distribution proxies and state-contingent estimations on the phase of the business cycle.

Details

International Journal of Emerging Markets, vol. 12 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 28 June 2013

Cuong Nguyen, Vu Linh and Thang Nguyen

The objective of the paper is to examine the profile and determinants of urban poverty in the two largest cities in Vietnam – Hanoi and Ho Chi Minh. The paper also investigates…

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Abstract

Purpose

The objective of the paper is to examine the profile and determinants of urban poverty in the two largest cities in Vietnam – Hanoi and Ho Chi Minh. The paper also investigates the dynamic aspect of urban poverty in Vietnam.

Design/methodology/approach

The authors use regression and data from the 2009 Urban Poverty Survey to examine the determinants of poverty in Vietnam. To analyse the poverty dynamics, an approach by Carter and May is used to decompose poverty into structural and stochastic poverty.

Findings

Using the poverty line of 12,000 thousand VND/person/year, the poverty incidence is estimated at 17.4 percent for Hanoi and 12.5 percent for Ho Chi Minh (HCM) City. There is a large proportion of the poor who are found stochastically poor. Hanoi has higher rates of structural poverty than HCM City. The proportion of structurally poor and stochastically non‐poor is rather small. Overall, the poor have fewer assets than the non‐poor. The poor also have poorer housing conditions, especially substantially lower access to tap water than the non‐poor. Heads of the poor households tend to have lower education and unskilled work than the heads of the non‐poor households.

Originality/value

In cities of Vietnam, a large proportion of the poor are found stochastically poor.

Details

International Journal of Development Issues, vol. 12 no. 2
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 2 October 2007

Seoung‐Hun Bae and Minsoo Shin

The growth of telecommunications spending is the single most vital factor for continuity of the virtuous circle in the overall information communications technology (ICT

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Abstract

Purpose

The growth of telecommunications spending is the single most vital factor for continuity of the virtuous circle in the overall information communications technology (ICT) industry. This article aims to attempt to gauge the future telecommunications expenditure potential of Korean households by adopting the Kuznets curve which considers the income turning point.

Design/methodology/approach

This study begins by examining the structural pattern of household telecommunications expenditures, and then analyzes them using the fully modified least squares estimation method. Household survey raw data collected on a quarterly basis between 1982 and 2005 were used.

Findings

The paper finds that the Korean telecommunication market has grown at a high pace and adopted new technologies quickly. Most previous studies on the Korean telecommunication market have predicted that growth will continue on the basis of the past trend of continuous growth in consumer communications service expenditure, and the technological innovations which have rapidly taken place in the industry over recent years. However, the research paper finds various interesting points that contradict the prediction.

Research limitations/implications

The main research limitation is the range of telecommunication expenditures. The main idea was to examine the relationship between household income and communications expenditure based on the concept of Kuznets hypotheses and to calculate an income turning point to measure spending potential.

Practical implications

The case of Korea offers implications for other countries that are putting in special efforts to manage the telecommunications service market.

Originality/value

The Kuznets hypotheses have never before been utilized in gauging consumers' expenditure potential in the ICT industry, and therefore the process and results discussed in this paper can be classed as pioneering.

Details

info, vol. 9 no. 6
Type: Research Article
ISSN: 1463-6697

Keywords

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