The fourth book in the ‘European Public Investment Outlook’ series focuses on the urgent issue of how to finance needed investment in critical tangible and intangible infrastructure given high levels ...of public debt, a thorny problem facing many governments across Europe. Drawing on expertise from academics, researchers at public policy institutes and international governance bodies, the contributors analyse the current situation and prospects and propose feasible solutions. Financing Investment in Times of High Public Debt offers a powerful combination of high-level analysis of cross-continental policies and trends, with close examination of specific contexts in France, Italy, Germany and Spain. The chapters in Part II explore challenges including how to finance climate investments, the extent to which national promotional banks can offer solutions, EU budget reform and recent trends in tax progressivity. This book is essential reading for economists, policymakers, and anyone interested in implementing and financing public policy in Europe and wanting to better understand the intricacies of EU governance and institutions.
Growth in a Time of Debt Reinhart, Carmen M.; Rogoff, Kenneth S.
The American economic review,
05/2010, Letnik:
100, Številka:
2
Journal Article
Recenzirano
Odprti dostop
We exploit a new multi-country historical dataset on public (government) debt to search for a systemic relationship between high public debt levels, growth, and inflation. Our main result is that ...whereas the link between growth and debt seems relatively weak at normal debt levels, median growth rates for countries with public debt over roughly 90% of GDP are about one percent lower than otherwise; average mean growth rates are several percent lower. We find no systematic relationship between high debt levels and inflation for advanced economies as a group (albeit with individual country exceptions including the United States). By contrast, in emerging market countries, high public debt levels coincide with higher inflation.
The public debt in Romania has experienced a spectacular increase in the last 2 years. More and more economic analysts sound the alarm and warn the government about the dangerous effects of this ...phenomenon on the country's economy. It will analyze the evolution and structure of public debt during 2015-June 2021, the causes of this increase and the consequences on the Romanian economy. At the same time we will study the behavior and decisions of the state leadership that led to this evolution. The paper includes 5 chapters. Introduction, in which we will define public debt and the current context related to this aspect. Here too we will refer to the motivation of approaching this analysis. The next chapter is Literature Review, in which we will present recent studies on public debt in general and public debt in Romania. Legal stipulations regarding public debt in Romania is a chapter in which the main normative acts regarding this aspect will be presented. In Database and analysis, the evolution and structure of public debt in the period 2015-2021 will be presented in figures, as well as other aspects related to the cost of public debt and the sovereign rating. The paper is based on data provided by the Ministry of Public Finance and the National Bank of Romania as well as the relevant tax legislation in Romania. Own calculations and correlations were performed based on this information. The conclusions in the last chapter are that the public debt has “exploded” in an impermissible, non-transparent and unsustainable way, without the responsible public entities clearly explaining the phenomenon. The consequences for the economy in the future are not known but can be intuited, given the status of Romania's emerging country.
The National Treasury, together with the Provincial Treasurers, are the custodians of public finances and they are responsible for budgeting for the national and provincial government departments. ...Currently, they are facing a major battle to rescue the public sector from the over bloated public wage bill and debt that is growing at a faster pace each day and bearing serious consequences on service delivery. This has the potential to cripple the public sector in the Republic of South Africa. The mandate of the South African government is to provide effective and sustainable public service delivery to ensure uninterrupted access of goods and services to the occupants of the country, the public wage bill and debt has overcrowded public service delivery and limited funds are used to fund the wage bill and to service the debts. This paper seeks to determine the strategies that could be employed by the government to ensure the sustainability of public service delivery. Sustainability of public service delivery is crucial in South Africa; hence it has higher levels of inequality, higher unemployment rate and more citizens live below the poverty line and depending on the government for basic services provision. South African government cannot have limited funds and higher burden of citizens who are dependent on the state, such bloated wage bill and debt must be dealt with according to prioritise service provision.
Purpose
This study aims to investigate the public deficit issue by contrasting conventional and Islamic views encompassing the paradigm, technical base, orientation and consequence detailed in nine ...discussions, which are rarely investigated in the research. There is a predisposition that contemporary Muslim scholars discuss the public deficit as well as the private sector perspective, which is used in the conventional conception, without
riba
as a primary feature.
Design/methodology/approach
The paper develops a comparative approach that derives two perspectives from the available literature using the qualitative method under the critical thinking method. It was drawn up in detail on how the paradigm and its related budgeting process contribute to public deficits, mainly in government institutions.
Findings
The paper reveals a prominent difference in public deficit in the Islamic view from a conventional perspective. From 9 points of comparison, the analysis covers 18 discussion that differentiates between private and public area criticism seems to overlap. The foundation giving a unique perspective in Islam toward public deficit is the concept of ownership that differs from capitalism, mainly the function of public spending is to distribute the wealth among people not for economic growth. The Islamic Government spent for public purposes based on cash-basis budgeting. The budgeting system in Islamic public spending is founded on treasure availability.
Research limitations/implications
The paper uses a qualitative method that cannot empirically snapshot the actual or factual condition, in which subjectivity plays a plausible role. Furthermore, there is no actual sample (best practices) of the concept to be examined.
Practical implications
The research encompasses overlap between Islamic and conventional perspectives, including public and private issues regarding public deficits. The main beneficiary of the paper is a policymaker, including academicians or practitioners who are appropriate to use the concept in their circumstances.
Originality/value
The study is a pioneering study in public deficit comprehensively comparing conventional and Islamic perspectives and drawing up conceptual and technical aspects.
This Element argues that governments allocate adjustment burdens strategically to protect their supporters, imposing adjustment costs upon the supporters of their opponents, who then protest in ...response. Using large-N micro-level survey data from three world regions and a global survey, it discusses the local political economy of International Monetary Fund (IMF) lending. It finds that opposition supporters in countries under IMF structural adjustment programs (SAP) are more likely to report that the IMF SAP increased economic hardships than government supporters and countries without IMF exposure. In addition, it finds that partisan gaps in IMF SAP evaluations widen in IMF program countries with an above-median number of conditions, suggesting that opposition supporters face heavier adjustment burdens, and that opposition supporters who think SAPs made their lives worse are more likely to protest.
We identify the major public debt overhang episodes in the advanced economies since the early 1800s, characterized by public debt to GDP levels exceeding 90 percent for at least five years. ...Consistent with Reinhart and Rogoff (2010) and most of the more recent research, we find that public debt overhang episodes are associated with lower growth than during other periods. The duration of the average debt overhang episode is perhaps its most striking feature. Among the 26 episodes we identify, 20 lasted more than a decade. The long duration belies the view that the correlation is caused mainly by debt buildups during business cycle recessions. The long duration also implies that the cumulative shortfall in output from debt overhang is potentially massive. These growth-reducing effects of high public debt are apparently not transmitted exclusively through high real interest rates, as in eleven of the episodes, interest rates are not materially higher. PUBLICATION ABSTRACT
•Examine the link between fiscal decentralization and technological innovation.•Fiscal decentralization has a positive relationship with technological innovation.•R&D and economic globalization ...promote technological innovation.•Public debt is negatively associated with technological innovation.•Bidirectional causality exists among technological innovation and its indicators.
In the past, economic models and empirical evidence have extensively examined the possible determinants of technological innovation. However, researchers did not give much importance to the relationship between fiscal decentralization and technological innovation. Therefore, this study examines the effects of fiscal decentralization on technological innovation, in the presence of economic globalization, public debt, and research & development expenditures (R&DE) for seven decentralized countries of the world, which include Brazil, South Africa, Canada, Germany, Japan, UK, and the USA. In this regard, the Westerlund and Kao cointegration methods' outcomes have provided ample evidence of a long-run equilibrium relationship among the variables associated with technological innovation and its determinants. The results of the common correlated effects mean group (CCEMG) support the hypothesized relationship between fiscal decentralization, and other technological innovation variables that have been taken into consideration. It is evident that an increase in fiscal decentralization, economic globalization, and R&D expenditures tends to improve the sample countries' performance in terms of innovation. On the contrary, public debt is negatively associated with technological innovation. By employing the Dumitrescu Hurlin test, we also found that any policy aims to target fiscal decentralization, R&D expenditures, and public debt significantly changes the advent of technological innovation.
Introducing uncertainty under fiscal sustainability conditions for the public debt provides a framework for analyzing debt dynamics. Such methods are commonly used for fiscal projections, but our aim ...here is retrospective; we evaluate the sudden jump in the Hungarian public debt following the global financial crisis in 2008. Based on a traditional debt-deficit stock-flow identity combining the fiscal component (primary deficit) and the interactions among real sector components, we model the debt dynamics by a vector error correction model (VECM). Uncertainty is represented in the model by shocks that are identified in the VECM framework. Using this method for simulation starting from 2006, we found that the debt-to-GDP ratio in 2008 and after could not be ruled out by 90 percent probability. Such an event was coded in the Hungarian debt dynamics and very likely would have materialized even without the unfortunate events of the global financial crisis.
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