Economic risk and political risk in fiscal unions

Article Abstract:

Fiscal integration in large political jurisdiction is beneficial as evidenced by economies of scale in the furnishing of public goods and the potential for mutual insurance. Integration is achieved at a certain cost and the most common way of capturing cost is through a concept stating that when a political jurisdiction grows, policy becomes more uncertain because results come from the aggregation of preferences of a more varied population. The bigger and more heterogeneous the political jurisdiction, the higher these costs are.

National Government Finance, Management, Public finance

---

The political economy of fiscal adjustments

Article Abstract:

There is no substantial evidence of a decline in popularity nor an election consequence for governments who implement government spending limitations. In contrast, governments that are forced to cut expenditures in times of financial crises, benefit much during election times. Moreover, citizens perceive governments constrained to limit spending as efficient and competent administrators of the country's coffers. Governments that limit spending and implement fiscal adjustments, survive longer.

Fiscal Policy, Tax and expenditure limitations

---

Taxation and redistribution in an open economy

Article Abstract:

An examination of redistributive fiscal policy in an open economy reveals that in a model with unions, such policy can significantly impact on relative unit labor costs and the relative price of nontradables. It is demonstrated that the effects of taxes are of the same level as the effects of government consumption. It is also shown that the behavior of unions and the structure of labor markets dictate the effects of taxation on competitiveness and employment.

Competition (Economics), Economic aspects, Labor market, Taxation, Capitalism

Similar abstracts:

• Abstracts: Economic roots of political conflict: The case of Sri Lanka. India and the impossible Trinity
• Abstracts: Caps on political lobbying. Caps on political lobbying: comment. Caps on political lobbying: reply
• Abstracts: The Fed's monetary policy rule and U.S. inflation: the case of asymmetric preferences. Inflation persistence and robust monetary policy design
• Abstracts: Corporate performance and Gazprom: problems and prospects. The merits of dual pricing of Russian natural gas. Rising energy prices in Moldova
• Abstracts: Transnational coalitions among societal, state and international actors: GM, Ford and Hyundai in the Canadian anti-dumping case: a comment

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.