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Article
Publication date: 1 March 2012

Janey Qian Wang

This paper investigates the impact of state governments’ “Tax and Expenditure Limits” (TELs) on their tax progressivity and redistributive spending. A two stage least squares…

Abstract

This paper investigates the impact of state governments’ “Tax and Expenditure Limits” (TELs) on their tax progressivity and redistributive spending. A two stage least squares (2SLS) regression model of data covering 1985-2007, was employed to allow for simultaneity in the relationships between intergovernmental transfer, tax progressivity, expenditure progressivity, and labor mobility. This model tested whether high- or low income residents had paid for and benefited from these fiscal institutions. As a result we find that TELs significantly decrease tax progressivity and increase poverty rate. These two policy effects should be explicitly accounted for in the design or revision of TELs.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 24 no. 4
Type: Research Article
ISSN: 1096-3367

Article
Publication date: 1 January 1984

Fuat M. Andic and Suphan Andic

Income and wealth inequality is a constant concern in our society. It becomes more acute at certain times than at others. The Great Depression raised the concern; so did the…

Abstract

Income and wealth inequality is a constant concern in our society. It becomes more acute at certain times than at others. The Great Depression raised the concern; so did the political circumstances in the 1960s when attention was focused on the state of the poor and of racial groups who were failing to participate in the national affluence.

Details

International Journal of Social Economics, vol. 11 no. 1/2
Type: Research Article
ISSN: 0306-8293

Article
Publication date: 1 February 1990

D. Wayne Taylor

Previous studies of business‐government relations have tended totake either a macro approach (using a single theoretical framework toexplain all business‐government relations) or…

Abstract

Previous studies of business‐government relations have tended to take either a macro approach (using a single theoretical framework to explain all business‐government relations) or a micro approach (one that fails to explain why business‐government relations have not improved over time). This article applies Lowi′s four‐part typology of policy types. In order to test the typology′s usefulness, a survey of business executives and government officials was carried out. The findings confirmed the thesis: business satisfaction with its relationship to government will be highest in the case of distributive policies, and decline to lowest in the case of constituent policies. A “meso‐level” theoretical framework is recommended to provide not only a better understanding of the multi‐levelled character of business‐government relations, but also future research with a practical orientation.

Details

International Journal of Public Sector Management, vol. 3 no. 2
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 14 May 2021

Noor Zahirah Mohd Sidek

This paper aims to re-examine the impact of government expenditure on income inequality. Existing studies provide mixed results on whether government expenditure reduces or…

1201

Abstract

Purpose

This paper aims to re-examine the impact of government expenditure on income inequality. Existing studies provide mixed results on whether government expenditure reduces or increases income inequality. In this paper, government expenditure is viewed as a tool for redistribution, hence, its impact on inequality is examined.

Design/methodology/approach

A sample of 122 countries with 91 and 31 countries categorized as developing and developed countries is used. The dynamic panel threshold regression is used to examine the impact of government expenditure on income inequality and to estimate the turning point of the negative or positive effects.

Findings

The major findings suggest that, in general, government expenditure does reduce income inequality. Results from developed countries support the inversed U-shaped Kuznet curve where higher government expenditure initially led to more inequality but would eventually bring about a positive effect after a certain threshold level. For developing countries, education and development expenditure were the driving forces towards lower income inequality.

Practical implications

Several policy implications can be derived from this paper. First, government expenditure is a useful tool to alleviate the problem of income inequality. More integration with the global economy via trading activities is also an important channel to help reduce income inequality. Finally, better institutional quality provides an effective ecosystem in promoting better redistribution of income via government expenditure.

Originality/value

This paper presents a maiden attempt to estimate a threshold value or when government expenditure starts to reduce or increase income inequality. The sample is segregated into developed and developing countries to further control the effect of government size and the level of development of a country.

Details

Studies in Economics and Finance, vol. 38 no. 2
Type: Research Article
ISSN: 1086-7376

Keywords

Open Access
Article
Publication date: 18 August 2023

Lindokuhle Talent Zungu and Lorraine Greyling

This study aims to test the validity of the Rajan theory in South Africa and other selected emerging markets (Chile, Peru and Brazil) during the period 1975–2019.

625

Abstract

Purpose

This study aims to test the validity of the Rajan theory in South Africa and other selected emerging markets (Chile, Peru and Brazil) during the period 1975–2019.

Design/methodology/approach

In this study, the researchers used time-series data to estimate a Bayesian Vector Autoregression (BVAR) model with hierarchical priors. The BVAR technique has the advantage of being able to accommodate a wide cross-section of variables without running out of degrees of freedom. It is also able to deal with dense parameterization by imposing structure on model coefficients via prior information and optimal choice of the degree of formativeness.

Findings

The results for all countries except Peru confirmed the Rajan hypotheses, indicating that inequality contributes to high indebtedness, resulting in financial fragility. However, for Peru, this study finds it contradicts the theory. This study controlled for monetary policy shock and found the results differing country-specific.

Originality/value

The findings suggest that an escalating level of inequality leads to financial fragility, which implies that policymakers ought to be cautious of excessive inequality when endeavouring to contain the risk of financial fragility, by implementing sound structural reform policies that aim to attract investments consistent with job creation, development and growth in these countries. Policymakers should also be cautious when implementing policy tools (redistributive policies, a sound monetary policy), as they seem to increase the risk of excessive credit growth and financial fragility, and they need to treat income inequality as an important factor relevant to macroeconomic aggregates and financial fragility.

Details

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

Keywords

Abstract

Details

Government for the Future
Type: Book
ISBN: 978-1-84950-852-0

Book part
Publication date: 11 July 2007

Angela Joya

This paper examines the transformation of Syrian political economy from 1970 until 2005. I argue that Syria has undergone two important phases of political and economic…

Abstract

This paper examines the transformation of Syrian political economy from 1970 until 2005. I argue that Syria has undergone two important phases of political and economic transformation, from building a centralized state and economy in the early 1970s to embarking on the path of market economy in the early 1990s. With the logic of competitiveness guiding the direction of economic development, the socio-economic changes of the mid-1980s and after have corresponded with an important process of class and state formation. After a brief discussion of the current transition in Syria, the following sections of the paper attempt to provide a critical study of the different strategies for economic development. Section two examines the process of state and economic centralization of the 1970s and 1980s and highlights the contradictions of this period. Section three assesses the impact of economic liberalization through a study of competitiveness in the economic policies of the 1990s and 2000. The final section examines the economic and political impasse that Syria has been faced with. In conclusion, I argue that the current path of market economy as the strategy for capital accumulation has not resolved the socio-economic problems that Syria has faced in the last two decades. This strategy will continue to face contestation by marginalized groups such as factions of the Baath Party, landless peasants, workers and small producers as Syria becomes even more integrated into the regional and global economy.

Details

Transitions in Latin America and in Poland and Syria
Type: Book
ISBN: 978-1-84950-469-0

Abstract

Details

Policy Matters
Type: Book
ISBN: 978-1-80382-481-9

Article
Publication date: 26 August 2021

Constantinos Alexiou and Emmanouil Trachanas

Motivated by the scant available evidence, this paper explores the relationship between government political party orientation and infant mortality.

Abstract

Purpose

Motivated by the scant available evidence, this paper explores the relationship between government political party orientation and infant mortality.

Design/methodology/approach

A panel quantile methodology is applied to a data set that consists of 15 countries of the G20 group over the period 2000–2018. The authors control for heterogeneous parameters across countries and quantiles and obtain estimates across the different points of the conditional distribution of the dependent variable.

Findings

The findings support the hypothesis that political party orientation has a significant effect on a population health indicator such as infant mortality. The analysis suggests that, to a great extent, left-wing government parties contribute to better health outcomes – when compared to right and centre political parties – both individually as well as interacted with government health expenditure. Moreover, the impact of redistributing policies appears to be of a paramount importance in alleviating infant mortality, while more education and lower unemployment can also contribute to better health outcomes.

Originality/value

The authors explore the relationship between the nature of government political party orientation (i.e. right, centre and left) and infant mortality whilst at the same time gauging the mediating effect of party orientation via government health expenditure on infant mortality. Additional aspects of the impact of other control variables, such as income inequality, unemployment and education on infant mortality are also investigated.

Details

International Journal of Social Economics, vol. 48 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 8 November 2017

Mhairi Mackenzie, Annette Hastings, Breannon Babbel, Sarah Simpson and Graham Watt

This chapter addresses inequalities in the United Kingdom through the lens of health inequalities. Driven by inequalities in income and power, health inequalities represent a…

Abstract

This chapter addresses inequalities in the United Kingdom through the lens of health inequalities. Driven by inequalities in income and power, health inequalities represent a microcosm of wider debates on inequalities. They also play a role as the more politically unacceptable face of inequalities – where other types of inequality are more blatantly argued as collateral damage of advanced neoliberalism including ‘inevitable’ austerity measures, politicians are more squeamish about discussing health inequalities in these terms.

The chapter starts by depicting health inequalities in Scotland and summarises health policy analyses of the causes of, and solutions to, health inequalities. It then describes the concept of ‘proportionate’ universalism’ and sets this within the context of debates around universal versus targeted welfare provision in times of fiscal austerity.

It then turns to a small empirical case-study which investigates these tensions within the Scottish National Health Service. The study asks those operating at policy and practice levels: how is proportionate universalism understood; and, is it a threat or ballast to universal welfare provision?

Findings are discussed within the political context of welfare retrenchment, and in terms of meso- and micro-practices. We conclude that there are three levels at which proportionate universalism needs to be critiqued as a means of mitigating the impacts of inequalities in the social determinants of health. These are within the political arenas, at a policy and planning level and at the practice level where individual practitioners are enabled or not to practice in ways that might mitigate existing inequalities.

Details

Inequalities in the UK
Type: Book
ISBN: 978-1-78714-479-8

Keywords

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