Research Topics

Publications on Government expenditure

There are 3 publications for Government expenditure.
  • Exchange-Rate Stability Causes Deterioration of the Productive Sphere and Destabilizes Developing Economies

    Working Paper No. 1052 | June 2024
    For Matías Vernengo and Esteban Pérez Caldentey (2020), the MMT literature overemphasizes the choice of the exchange rate regime and the relevance of a flexible exchange rate regime, as well as the ultimate effect of that choice upon the policy space. In addition, they argue that the role of capital flows is underexplored, and that the relevance of the balance-of-payments constraint is often underestimated. Vernengo and Pérez’s criticism fails to consider that exchange-rate flexibility makes it possible to use flexible fiscal and monetary policies as well, to boost growth and employment, and to reduce the balance-of-payments constraint.

  • COP28 and Environmental Federalism: Empirical Evidence from an Emerging Economy, India

    Working Paper No. 1040 | February 2024
    Against the backdrop of COP28, this paper investigates the impact of intergovernmental fiscal transfers (IGFT) on climate change commitments in India. Within the analytical framework of environmental federalism, we tested the evidence for the Environmental Kuznets Curve (EKC) using a panel model covering 27 Indian states from 2003 to 2020. The results suggest a positive and significant relationship between IGFT and the net forest cover (NFC) across Indian states. The analysis also suggests an inverse-U relationship between Gross State Domestic Product (GSDP) and the environmental quality, indicating a potential EKC for India. The findings substantiate the fiscal policy impacts for climate change commitments within the fiscal federal frameworks of India, and the significance of IGFT in increasing the forest cover in India. This has policy implications for the Sixteenth Finance Commission of India in integrating a climate change–related criterion in the tax-transfer formula in a sustainable manner. 
    Associated Programs:
    Lekha S. Chakraborty Amandeep Kaur Ranjan Kumar Mohanty Divy Rangan Sanjana Das

  • The Levy Institute Measure of Economic Well-Being: Estimates for Canada, 1999 and 2005

    Working Paper No. 680 | July 2011

    This report presents estimates of the Levy Institute Measure of Economic Well-Being (LIMEW) for a representative sample of Canadian households in 1999 and 2005. The results indicate that there was only modest growth in the average Canadian household’s total command over economic resources in the six years between 1999 and 2005. Although inequality in economic well-being increased slightly over the 1999–2005 period, the LIMEW was more equally distributed across Canadian households than more common income measures (such as after-tax income) in both 1999 and 2005. The median household’s economic well-being was lower in Canada than in the United States in both years.

    Associated Programs:
    Andrew Sharpe Alexander Murray Benjamin Evans Elspeth Hazell

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