Student loan debt in the United States is $1.6 trillion and rising. The public debate concerning the human capital value vs. the social capital value of higher education has been shifting toward the ...former and away from the latter standpoint in recent years. I observe how the current system of Federal student loans is proving inadequate for a growing number of students. In an era of rising costs, high college enrollment, slower economic growth, and an aging population, the government provision of free college tuition would likely result in lower educational quality and lower accessibility for prospective students. Income Share Agreements offer a market-based alternative for higher education financing that might offer solutions to most of the problems with existing avenues for higher education financing - the solution involves shifting from relying on debt to finance higher education to financing education as an equity investment. In order to clarify lawfulness, policymakers should instill legal certainty and alleviate the reluctance of investors and prospective students from entering the marketplace.
La politica finanziaria italiana negli anni Ottanta è stata finalizzato principalmente al miglioramento dei segmenti rilevanti e il raggiungimento di un migliore mix di tutta la gamma di strumenti e ...intermediari. Altri due tendenze - privatizzazione e deregolamentazione - sono stati molto meno in primo piano rispetto al resto del mondo . L'autore fornisce un'ampia panoramica dello stato della politica finanziaria italiana , guardando le circostanze economiche e le politiche macroeconomiche , l'innovazione finanziaria , il processo di liberalizzazione e privatizzazione di regolamentazione . Italian financial policy in the eighties has been aimed mainly at improving the relevant segments and achieving a better mix of the whole range of instruments and intermediaries. Two other trends - privatisation and deregulation - have been much less to the fore than the rest of the world. The author provides a broad overview of the state of Italian financial policy, looking at economic circumstances and macro-economic policies, financial innovation, the deregulation-regulation process and privatisation. JEL: G18
The relationship between the degree of taxation, the activity of firms and the performance measured by the ability to achieve positive results and to ensure a financial equilibrium has been an ...important issue in the debate in a great deal of research, but in most of them, the analyses were reported according to a set of factors (inclusive the fiscal degree). This paper comprises an empirical investigation to identify the effects of the degree of taxation on financial stability and the balance of enterprises. An analysis of the degree of taxation and of the economic growth rate in Romania was made in the first part, and, after that, empirical analyzes were conducted on how the volume of taxes, the capital structure and other indicators influences the level of value added as well as the volume of fiscal pressure and the duration of payment of tax liabilities. Using data on the level of macroeconomic taxation, as well as information on financial equilibrium indicators at the level of some representative companies in the field of rubber and plastic processing listed on the stock exchange, a model of the existing relationships between a series of indicators related to financial equilibrium and economic growth rate, fiscal pressure and profitability was produced, using statistical analyses based upon multiple regressions and simulations in SPSS software. The main conclusions show that taxes and fees influence the financial positions of firms by changes in the volume and structure of the capital used, the level of profit/loss, as well as financial equilibrium, at the level of solvency and liquidity. Also, the results extend the understanding of the importance the tax administration in creating added value, ensuring financial equilibrium and good performance in the context of the sustainable development of companies.
This paper estimates the revenue potential of a financial transaction tax (FTT) for US financial markets. We focus on analyzing the revenue potential of the Inclusive Prosperity Act that was ...introduced in the US House of Representatives in 2012 and the US Senate in 2015. The tax rates stipulated in this Act include 0.5% (50 basis points (bps)) for all stock transactions, 0.1% (10 bps) for all bond transactions and 0.005% (0.5 bps) on the notional value of all derivative trades. We examine three sets of evidence to generate potential revenue estimates: 1) the levels of transaction costs in US financial markets over time and within the range of financial market segments; 2) the extent of trading elasticities under various trading conditions; and 3) the current level of trading activity in US financial markets. Based on this evidence, we conclude that a US FTT operating at the tax rates stated above would generate about $220 billion per year, equal to about 1.2% of the current US GDP.
While earlier studies focus on credit booms in advanced and emerging market countries, this paper examines the characteristics and determinants of credit booms in developing countries. The results ...find that credit booms in developing countries are less likely to be associated with systemic banking crises. Rather, they are more likely to be the result of financial deepening than of dangerous buildups of financial risks; the prevention of credit booms in developing countries may thus be associated with higher opportunity costs in terms of foregone growth opportunities. Random effect probit and tobit regressions find some evidence that credit booms are likely to start when the economy is expanding and if the financial sector is larger. Although monetary and fiscal policies do not help in preventing credit booms in developing countries, we find that prudential regulations and supervision can play a much more effective role in preventing “bad” booms, while incurring substantially lower costs. Although “bad” booms are hard to identify ahead of time, the duration and size of booms, as well as the level of credit aggregates, appear to be useful indicators in determining them.
We investigate corporate financial policies in the presence of both temporary and permanent shocks to firms' cash flows. In our framework, cash flows can be negative and are imperfectly correlated ...with firm value, and earnings volatility differs from asset volatility. These results are consistent with empirical stylized facts. They are also contrary to the implications of existing dynamic capital structure models that allow only for permanent shocks to cash flows. Temporary shocks increase the importance of financial flexibility and may provide an intuitively simple and realistic explanation of empirically observed financial conservatism and low leverage phenomena. The theoretical framework developed in this article general enough to be used in various corporate finance applications.
Generally, one of the important issues related to currency crises is the output losses caused by these phenomena. In this study, determinants of output losses and particularly the role of the central ...bank will be evaluated during currency crises. Moreover, the paper tries to investigate the roles of macroeconomic variables and also monetary, fiscal and exchange rate policies on the output losses during currency crises. In this regard, an econometric model with panel data has been used for emerging market countries during 1980-2016. The results show that currency crises accruing have a positive and significant effect on output losses. While the successful defence of central bank has had the negative effects on the output losses, but it is positive for the unsuccessful defence and the non-intervention or immediate depreciation. However, the role of the macroeconomic condition is important where total foreign reserves can be considered as a buffer against the output losses, while inflation and deviation of the real exchange rate from its trend have had positive effects on the output losses. Finally, the output losses can be reduced by an active monetary, fiscal and exchange rate policies.
The goal of the article is consideration of theoretical provisions with respect to the state financial policy. The article considers the role of the financial policy in ensuring stabilisation of the ...Ukrainian financial system. It presents conceptual provisions regarding main goals, mechanisms and instruments of the stabilisation financial policy of the state. It develops economic indicators of its efficiency. The use of indicators of economic efficiency of the stabilisation financial policy by the bodies of state authority in their practical activity would provide the society with a possibility to assess expediency of measures of this policy increasing its efficiency and decreasing criticism at the government. A necessary direction of achievement of effectiveness and efficiency of the stabilisation financial policy is taking into consideration interests of all social groups (population, entrepreneurs, financial institutes and companies, etc.) by the bodies of state authority in the process of its development and realisation.
Italian financial policy in the eighties has been aimed mainly at improving the relevant segments and achieving a better mix of the whole range of instruments and intermediaries. Two other trends - ...privatisation and deregulation - have been much less to the fore than the rest of the world. The author provides a broad overview of the state of Italian financial policy, looking at economic circumstances and macro-economic policies, financial innovation, the deregulation-regulation process and privatisation. JEL: G18
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