Public Finance

Die Bereitstellung von oeffentlich-rechtlichen Fernseh- und Rundfunkprogrammen: Eine Analyse auf Basis der Kollektivguetertheorie

by Christof Backhaus

Authors: Andreas Hadamitzky, Korbinian von Blanckenburg, Christof Backhaus
published in: Perspektiven der Wirtschaftspolitik, Volume 8, Issue 3, 256–278, August 2007.

From a public finance perspective, the article discusses alternative allocation policies for public broadcasting.... more From a public finance perspective, the article discusses alternative allocation policies for public broadcasting. Referring to a scheme for the optimal procurement of public goods two solutions are shown to be optimal, depending on the initial situation: Assuming a public service mission, public broadcasting is to be treated as a pure public good. Thus, it should be funded via a compulsory levy. Payers should include total population above a specific age. However, questioning the public service mission, public broadcasting represents a club good, which should be funded via voluntary contributions of actual users. To accomplish this, country-wide digitalization is necessary, which will be realized in Germany not before 2010.

Het lichaam van het dorp. Publieke schuld op het Hollandse platteland rond 1500

by Jaco Zuijderduijn

Published in Tijdschrift voor Sociale en Economische Geschiedenis 5 (2008) 107-132
In dutch

Public debt soared in the late-medieval Low Countries: towns borrowed considerable sums from creditors and often ended... more Public debt soared in the late-medieval Low Countries: towns borrowed considerable sums from creditors and often ended up defaulting on their financial obligations. The author uses a tax inquiry from 1514 to demonstrate that villages also managed to create funded debt, which they secured on the public body
of the village. As a result, around 1500 the majority of the villages in Holland owed annuities to local and foreign creditors. This public debt was particularly contracted to be able to pay taxes to the sovereign, but it also allowed villages
to invest in water management and mills and to protect themselves against encroachments by noblemen and towns. Thus they could use their access to capital markets to defend the interests of the public body and its members. Furthermore,
the possibilities villages had to borrow and the conditions against
which these loans were contracted, tell us a lot about the level of sophistication of capital markets in late-medieval Holland.

De laatmiddeleeuwse crisis van de overheidsfinanciën en de financiële revolutie in Holland

by Jaco Zuijderduijn

Published in Bijdragen en mededelingen betreffende de geschiedenis der Nederlanden 125 (2010) 3-24
In dutch

Historians of the Dutch Revolt have suggested that the success of the rebellious provinces can be explained by... more Historians of the Dutch Revolt have suggested that the success of the rebellious provinces can be explained by sixteenth-century financial innovations that improved the creditworthiness of the States of Holland. This article claims that this development
was triggered by a severe crisis of public finance in these States at the end of the fifteenth century. An analysis of the ensuing reorganization shows that some of these innovations were first introduced as a means of crisis management. This article
uncovers some of the elements that allowed the States to create provincial debt on a more structural basis after 1515, during Holland’s ‘financial revolution’

The emergence of provincial debt in the county of Holland (thirteenth-sixteenth centuries)

by Jaco Zuijderduijn

Published in European Review of Economic History 14 (2010) 335-359

Historians often use the concept of financial revolutions to explain the rise of the Dutch Republic, claiming that... more Historians often use the concept of financial revolutions to explain the rise of the Dutch Republic, claiming that innovations in government funding allowed for marked progress in the field of public finance. The article focuses on the medieval precursors of the financial revolution, which the States of Holland brought about when they introduced province-wide public debt in the sixteenth century. The relevant techniques were already known, but predominantly used for political rather than financial purposes. Therefore techniques such as collective responsibility for debt were scarcely implemented. The article hypothesizes that sovereigns made use of the corporate personality of public bodies to increase ties with the main towns of Holland, and thus they used collective responsibility for debt to create stability. This only became a major financial instrument at the turn of the sixteenth century, when a financial crisis forced both sovereign and main towns to reorganize the medieval system of debt servicing. This centralization was crucial for the large public debt the county of Holland created under the Dutch Republic and may even be regarded as a step in the direction of national debt.

Hidden public debt in Poland

by Łukasz K. Kozłowski

published in, 'Studia BAS' no. 4(28) 2011, p. 25-47 (in Polish)

This article looks at the issue of hidden government debt in Poland. The paper begins by defining hidden public debt... more This article looks at the issue of hidden government debt in Poland. The paper begins by defining hidden public debt and discussing its significance. The authors then introduce implicit obligations of the public finance sector in Poland and attempt to assess the relevant future financial burden which is not included in the official government debt data. In the next section, the volume of public debt (including implicit liabilities) is discussed. The article concludes with a brief discussion of the results of the analysis.

Egypt's demographic pressure - Where and how to create jobs

by Marga Peeters

After the drama of Egypt’s revolution comes the economic reality – one of the catalysts for regime change was the... more After the drama of Egypt’s revolution comes the economic reality – one of the catalysts for regime change was the country’s high unemployment. This column shows that the growing number of young people entering the job market will only add to the pressure. It argues that job creation in the private sector should be the number one priority for stimulating Egypt’s economic growth.

The public-private savings mirror and causality relations among private savings, investment, and (twin) deficits:: A full modeling approach

by Marga Peeters

Relations between national public and private savings, domestic investment, and the current account are analyzed with... more Relations between national public and private savings, domestic investment, and the current account are analyzed with the Global Econometric Model (National Institute, London). Simulation results obtained with this full modeling approach for the US, Japan, Germany and the UK are compared with estimation results from partial modeling approached adopted in the literature. The results from the two approaches are rather different. The simulation results indicate that private savings largely offset public savings (and vice versa) in the short run. In contrast with findings in partial models, a smaller effect of aggregate savings on investment is found and government deficits tend to increase current account imbalances.

A Search-Theoretic Critique of Georgism

by Zac Gochenour

Co-authored with Bryan Caplan

This paper develops a critique of the single-tax proposal of Henry George. We present a simple search-theoretic model... more This paper develops a critique of the single-tax proposal of Henry George. We present a simple search-theoretic model for the discovery of natural resources and show that a tax on the unimproved value of land is distortionary. We then consider the time inconsistency and regime uncertainty problem created by even incremental Georgist policy. We discuss historical cases of land reform and the subsequent challenge to re-establish a credible commitment to property rights in land and natural resources.

A global view on demographic pressure and labour market participation

by Marga Peeters

co-authored with Loek Groot

Demographic change across the globe puts pressure on labour markets and public finances. Most studies on ageing focus... more Demographic change across the globe puts pressure on labour markets and public finances. Most studies on ageing focus on the projected development of the old age dependency ratio, being the ratio of persons 65 or older relative to the working age population. This ratio gives a very incomplete picture of the (fiscal) pressure from demographic changes. In this study, besides the share of the dependent population composed of the young and the old, we also include the share of the working age population that is not active on the labour market, labelled as the labour market space. By analysing 21 developing and 29 developed economies across the globe, we cover 75% of the 9.3 billion people that the United Nations projects for the whole world in 2050. A new indicator, relating demographic pressure from fiscal spending to the available space at the labour market, enables us to quantify and compare the pressure-to-space across countries over the time span 2010-2050. The indicator points out that Poland, Turkey and Greece are most under pressure. Developing countries, such as Uganda, the Democratic Republic of Congo and Tanzania will experience a very low pressure up to 2050 in case their fiscal spending per young and elderly person remains at the current levels. In most of the countries under high pressure there seems to be room for using the labour market space by, for instance, working more hours or increasing the retirement age, as this will alleviate the fiscal pressure. This suggests a policy trade-off between maintaining publicly financed services to the dependent population and maintaining labour market space.

Class Analysis of an Indian Budget

by Abhishek Shaw

Dissertation submitted to the Department of Economics,
University of Hyderabad in partial fulfillment of Integrated Master of Arts (Economics), March 2011

Demographic pressure, excess labour supply and public-private sector employment in Egypt-Modelling labour supply to analyse the response of unemployment, public balances and welfare

by Marga Peeters

The demographic structure of Egypt has the form of a pyramid, indicating that labour supply will grow at a relatively... more The demographic structure of Egypt has the form of a pyramid, indicating that labour supply will grow at a relatively high rate for many years to come. Unless emigration flows will rise, Egypt needs to create jobs at a much higher pace than most other countries around the globe to absorb the new entrants at the domestic labour market. Adding to this is the currently high share of 30-40% of the Egyptian employees working in the rather inefficient public sector. In order to quantify future developments at the labour market, this paper presents a labour supply model to analyze the impact of the ongoing demographic supply shocks and the shedding of public sector jobs on unemployment in Egypt. The findings indicate that the demographic labour supply will increase unemployment in the short term as the Egyptian labour market will not be able to absorb the demographic labour supply, unless the Egyptian economy grows steadily at least at 5% for many years in a row. In the long term, the employment dividend can be reaped by productivity growth increases if the labour market starts functioning. The findings also point out that, for growth to accelerate rapidly, job creation should occur in the private and not in the public sector. The large public sector has been driving up government expenditures disproportionably, not only because of the existence of the high number of people employed in the public sector but also because of excessive public wage increases.

Demographic change across the globe - maintaining social security in ageing economies

by Marga Peeters

co-authored with Loek Groot

This paper investigates the fiscal pressure from demographic change in relation to the labour market space for fifty... more This paper investigates the fiscal pressure from demographic change in relation to the labour market space for fifty countries that cover 75% of the world population. The pressure-to-space indicator ranks Poland, Turkey and Greece high. Apart from Turkey and India, developing countries rank low due to low spending on the old (pensions, health care) and the young (education, family costs). Peculiarly, economies with higher pressure have more space. The hypothesis that ageing economies have started using their space in anticipation to higher demographic pressure is rejected. Raising the retirement age in developed economies by five years alleviates the pressure by almost 30% and creates 10% more labour market space.

Freud, efficiency and pragmatism

by Patricia Shields

Published in Society. 1989. Jan/Feb. Vol.26.pp.67-72.

This article enters the worlds of the social worker (Freud), economist (efficiency) and public administrator... more This article enters the worlds of the social worker (Freud), economist (efficiency) and public administrator (Pragmatism) and explores them through the mechanism of public pricing or user fees. The point is to capture the language and values of each and to show how they differ. Social work looks to Freud for guidance. Clients get better if they pay an appropriate amount. Economists see user fees as a price a key mechanism of efficiency. Public administrators need to pay the bills and view fees as a revenue source.

Sources of Public Finance in an Islamic Economy

by Salman Ahmed Shaikh

Since interest is prohibited in Islam, the government in an Islamic economy cannot issue interest based T-Bills,... more Since interest is prohibited in Islam, the government in an Islamic economy cannot issue interest based T-Bills, T-Bonds and/or obtain interest based sovereign debt. Based on the literature review, it is argued that neither Prophet Muhammad (P.B.U.H) nor the pious Caliphates (rta) levied any taxes other than Zakah. Accordingly, this study explores the sources of revenue for a government in an Islamic economy. In discussing sources of tax revenue, it is maintained that Zakah is the only tax the government in an Islamic economy can levy. Nevertheless, the government can charge service/performance based fees, duties, charges etc in providing public goods. Furthermore, the profitable operations of state owned enterprises form an important part of non-tax revenues. It is also analyzed that how the non-profitable public institutions like police and courts will be funded. This study also discusses that how the government can finance its deficit keeping in view that interest is prohibited in Islam and Zakah rates are very low and Zakah base is very narrow as per common understanding. The study also gives brief insights into how much Zakah can be collected in Pakistan. Finally, it suggests that the nominal GDP growth linked rate of return can be used to benchmark domestic and external loans including those from IMF, WB and IDA etc.

Role and Functions of Central Bank in Islamic Finance

by Salman Ahmed Shaikh

The rapid growth in Islamic finance industry urges us to not only look for alternatives in the Islamic commercial... more The rapid growth in Islamic finance industry urges us to not only look for alternatives in the Islamic commercial banking, but also focus on the regulator and its role and functions to enable it to work in conformity with Islamic principles. This study reviews limited, but precious academic literature on central banking and monetary management in an environment where Islamic finance is in vogue. Refinance ratio and Qard-e-Hasan ratio and Mudarabah between central bank and Islamic commercial banks are in line with Islamic principles and helps meet liquidity requirements in the banking sector. Mudarabah can be done with profit sharing ratio benchmarked on economy’s nominal income growth. We have presented the evidence on statistical equivalence of nominal Interest rates (being used in conventional banking) and Nominal GDP growth rate (we are recommending to use).The nominal GDP growth linked rate of remuneration can be used to benchmark for external loan arrangements including those from IMF, WB and IDA etc. We suggest central banks particularly in Muslim countries to use nominal income targeting as a rule for the conduct of monetary policy

Public Pricing: One Answer to the Human Service Fiscal Dilemma

by Patricia Shields

Published in the New England Journal of Human Services 1981 1(3): 18-24

Public Pricing is a generic term referring to "fee for services" or "user charges." Advocates of... more Public Pricing is a generic term referring to "fee for services" or "user charges." Advocates of public pricing as a substitute for and supplement to taxation or grants claim it increased both efficiency and equity in the allocation of goods and services for public purposes. Furthermore, a pricing mechanism is particularly suited to human services that are provided at the local level. Critics, however, claim fees are regressive, placing a disproportionate burden on the poor. This paper acquaints the reader with the advantages and limitations of public pricing. The equity problems is discussed and alternative pricing schemes that take income differences into account are evaluated..

Accountable Government: Use of Performance Measurement in Texas Cities

by Texas State PA Applied Research Projects

Gilley, Larry D., "Accountable Government: Use of Performance Measurement in Texas Cities" (1996). Applied Research Projects, Texas State University-San Marcos. Paper 92.
http://ecommons.txstate.edu/arp/92

Implications of Residential Irrigation Metering for Customers' Expenditures and Demand

by Shadi Eskaf

Published in Journal of the American Water Works Association (JAWWA, 2011)

Designing Rate Structures that Support Your Objectives: Guidelines for NC Water Systems

by Shadi Eskaf

Cost Plus: Estimating Real Determinants of Water and Sewer Bills

by Shadi Eskaf

Published in Public Works Management & Policy, 2009

This article tests the importance of cost, demand, institutional and geographic factors on the bills that consumers... more This article tests the importance of cost, demand, institutional and geographic factors on the bills that consumers pay for water and sewer service in North Carolina and the pricing signals utilities send to customers. The authors apply spatial regression models to test whether other factors besides costs drive rate-setting practices. Results indicate that cost factors, operating ratio, temperature, the application of "outside" rates, and utilities’ primary importance on affordable rates affect combined water and sewer bills at average levels of residential consumption. The study also finds that bills are significantly and positively correlated to bills paid in nearby utilities. Community income and the percent of customers below the poverty line are weakly associated with combined bills. However, utilities facing higher growth rates and those that value conservation are no more likely to send stronger pricing signals than others.