114 research outputs found
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Fiscal Effects of Putting Initiatives on the Ballot: Evidence from the Last 20 Years in the United States
Full text linkThis paper investigates both the indirect (i.e. the existence) and the direct effects (i.e. the usage) of direct democracy institutions on major fiscal outcomes across the United States over the 1992-2009 period. Being based on a more recent time span than previous contributions, our work includes detailed information such as the type of institution (i.e. direct or indirect initiative), the voting outcome, and the topics of concern. The main results suggest that States permitting initiatives spend and tax less than those without, confirming some previous findings. However, when initiatives are effectively used, their practice contributes to increase spending among those States allowing them. The intensity of different initiatives also matters for fiscal outcomes as well as the nature of topics involved
Labor Market Institutions and Their Impact on Shadow Economies in Europe
Full text linkThis paper analyzes the role of labor market institutions in explaining developments of shadow economies in European countries. We use several alternative measures of the shadow sector to examine the effects of labor market institutions on shadow sector in two specific regions, the old and the new European Union member states. Comparing alternative measures of the shadow sector allows a more granulated analysis of the effects of labor market institutions. Our results indicate that the one institution that unambiguously increases shadow economy is the strictness of employment protection legislation. Other labor market institutions have less straightforward and statistically robust effects, and their impact often differs in the old and new EU member states
International Patenting, Patent Rights, and Technology Gaps
Full text linkInternational patenting activity is a source of international technology diffusion.� However, technology diffuses imperfectly and technology gaps exist between nations.� Indeed patenting activity is largely concentrated in developed countries.� A gap also exists in patent protection levels across countries, being weak in largely developing countries.� Hence this paper studies the extent to which the strengthening and harmonization of patent rights would stimulate international patenting and help narrow technology gaps.� International total factor productivity (TFP) differences are used as measures of technology gaps.� The paper develops and estimates a model of international patenting and TFP behavior using a panel data set of 44 countries, developed and developing, over the period 1975 - 2005.� Of these countries, 25 of them will serve as �source countries� (i.e., the source of technologies).� Overall, however, the paper finds that international patent reforms (even those that involve major regime changes) have relatively modest effects on the technology gap between developed and developing nations
Banking Consolidation and Bank-Firm Credit Relationships: the Role of Geographical Features and Relationship Characteristics
Full text linkUsing data on bank credit relationships, the paper shows that after a merger or an acquisition involving two or more banks which had previously jointly financed the same firm, the share of credit granted to the client by the consolidated intermediaries moderately decreases over three years. This does not necessarily imply a reduction of the overall credit granted to the firm, because after mergers and acquisitions the probability of diversifying the mix of lenders increases. A geographical closeness between bank and firm, or a membership of the firm in an industrial district, by reducing information asymmetries and the cost of soft information, seem to mitigate or offset the decrease in the share of credit provided by consolidated banks. By contrast, if a firm is in financial distress or located in the South of Italy, diversification is significantly enhanced
Fiscal Consolidation and the Implications of Social Spending for Long-Term Fiscal Sustainability
Full text linkThis paper sheds light on the scale of fiscal consolidation that will be needed toensure long-term sustainability and on the potential benefits of institutional reforms inmitigating budget pressures of social spending. Based on alternative scenarios, resultssuggest that, in several OECD countries, the fiscal challenges are exacerbated in the longterm by spending pressures related to health and pensions. This paper shows howinstitutional reforms may support long-term fiscal sustainability and, at the same time,reduce adverse short-term effects of fiscal consolidation on growth
Estimating the Effect of Transitory Economic Shocks on Civil Conflict
Full text linkEconomists and political scientists have argued that differences in the risk of civil conflict across countries and over time may partly reflect differences in the opportunity cost of participating in civil conflicts. One way to test for the opportunity-cost channel is to examine civil conflict risk following transitory income shocks. In this paper I propose two instrumental-variables approaches to estimate the effect of transitory income shocks on civil conflict risk. I also show that approaches not tailored to transitory income shocks may lead to the conclusion that negative income shocks increase the risk of civil conflict - which would seem consistent with an opportunity-cost channel - when they actually lower civil conflict risk. I illustrate these issues by revisiting Miguel, Satyanath, and Sergenti's (2004) conclusion that negative income shocks increase the risk of civil conflict in Subsaharan Africa
Economic and Political Constraints on the Demand-Side of Electricity Industry Re-structuring Processes
Full text linkThis paper identifies the major political and economic constraints that impact the demand-side of electricity industry re-structuring processes. These constraints have been a major barrier to implementing effective restructuring processes in many countries, particularly those in the developing world. The paper describes how these constraints have been addressed and how this has harmed market efficiency and system reliability using examples from re-structuring processes around the world. The paper proposes demand-side regulatory interventions to manage these constraints in a manner that limits the harm to wholesale market efficiency. Finally, specific regulatory inventions for developing countries are proposed
Walking Hand in Hand: Fiscal Policy and Growth in Advanced Economies
Full text linkImplementation of fiscal consolidation by advanced economies in coming years needs to take into account the short and long-run interactions between economic growth and fiscal policy. Many countries must reduce high public debt to GDP ratios that penalize long-term growth. However, fiscal adjustment is likely to hurt growth in the short run, delaying improvements in fiscal indicators, including deficits, debt, and financing costs. Revenue and expenditure policies are also critical in affecting productivity and employment growth. This paper dicusses the complex relationships between fiscal policy and growth both in the short and in the long run
Measures of R&D Tax Incentives for OECD Countries
Full text linkThis paper outlines tax policy details from 26 OECD countries between 1980 and 2006 and provides a summary quantitative measures of their relative generosity. Separate measures for the after-tax cost of labour, other current expenditure, machinery equipment and buildings and structures are presented and also a measure of tax policy applicable to multinational subsidiaries undertaking R&D on behalf of the parent firm. The purpose of this working paper is to make this data available for other researchers
Contract Renewal as an Incentive Device. An Application to the French Urban Public Transport Sector
Full text linkIn the French urban public transport industry, operations are often delegated and periodicallyput out for tender. Thus, operators� incentives to reduce costs come from both profitmaximization during the current contract and from the perspective of contract renewal. Weconstruct a dynamic incentive regulation model that captures these features and we show thatboth the level of cost-reducing effort and its repartition during the contracting period dependon the contract type (cost-plus, gross cost or net cost contract). We then estimate a costfrontier model for an eight-year panel of French bus companies (664 company-yearobservations) to test our predictions