Pub Date : 2018-04-23DOI: 10.16980/jitc.14.2.201804.67
Eun-Young Nam, Eun-hye Lee, Guang-jian Xu
Recently, China’s fiscal reform to improve government fiscal efficiency has taken center stage. Improved fiscal efficiency allows for the development of a virtuous cycle of transparency, public engagement and budget supervision. The budget waste reporting system implemented in South Korea can be used as a case study example for building such a virtuous cycle. In fact, such a system does indeed help Korea achieve budget reductions. Academic studies in China on how to improve fiscal efficiency have so far centered on areas of transparency, public engagement and supervision. The budget waste reporting system implemented by Korea has demonstrated a virtuous cycle relationship among these systems and is thus of great significance. For the Chinese government, first priority to implementing such a system should be given to improving the system of information disclosure. This means that rather than simply disclosing the budget information, the public should be engaged in how to comprehend such disclosures. Not only can the implementation of such a system in China directly achieve budget cuts, it can also play an important role in improving fiscal transparency and household welfare.
{"title":"South Korea's Budget Waste Reporting System: A Case Study for China","authors":"Eun-Young Nam, Eun-hye Lee, Guang-jian Xu","doi":"10.16980/jitc.14.2.201804.67","DOIUrl":"https://doi.org/10.16980/jitc.14.2.201804.67","url":null,"abstract":"Recently, China’s fiscal reform to improve government fiscal efficiency has taken center stage. Improved fiscal efficiency allows for the development of a virtuous cycle of transparency, public engagement and budget supervision. The budget waste reporting system implemented in South Korea can be used as a case study example for building such a virtuous cycle. In fact, such a system does indeed help Korea achieve budget reductions. Academic studies in China on how to improve fiscal efficiency have so far centered on areas of transparency, public engagement and supervision. The budget waste reporting system implemented by Korea has demonstrated a virtuous cycle relationship among these systems and is thus of great significance. For the Chinese government, first priority to implementing such a system should be given to improving the system of information disclosure. This means that rather than simply disclosing the budget information, the public should be engaged in how to comprehend such disclosures. Not only can the implementation of such a system in China directly achieve budget cuts, it can also play an important role in improving fiscal transparency and household welfare.","PeriodicalId":127865,"journal":{"name":"Political Economy: Budget","volume":"361 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129031473","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Russian Abstract: В настоящей работе строится система прогнозов бюджетного финансирования системы образования и ее уровней, а также задач, которые должны решаться в данной сфере. Представлены три сценария развития образования до 2024 г., определены последствия и риски их реализации. Показано, что основными бенефициарами в получении бюджетных средств в прогнозном периоде являются дошкольное и общее образование. Среднее профессиональное образование проигрывает в бюджетном финансировании практически во всех вариантах прогноза. Что касается рисков развития системы образования то они, прежде всего, связаны с недофинансированием программ повышения квалификации педагогических работников, без которого невозможно ни обновление содержания образования, ни включение в образовательный процесс новых образовательных технологий, а также со слабым ростом в реальном выражении бюджетных расходов на прикладные научные исследования в области образования, поскольку именно научные исследования должны определить направления реформирования различных уровней образования и новые механизмы управления образованием в изменяющихся социально-экономических условиях, задать адекватное обновление содержания общего и профессионального образования. English Abstract: This paper builds a system of forecasts for the budget financing of the education system and its levels, as well as tasks to be solved in this area. Three scenarios for the development of education up to 2024 are presented, the consequences and risks of their implementation are determined. It is shown that the main beneficiaries in obtaining budget funds in the forecast period are pre-school and general education. Secondary vocational education loses in budget financing in almost all variants of the forecast. With regard to the risks of the development of the education system, it's primarily related to the underfunding of educational programs for teachers, without which it is impossible either to update the content of education, or to include new educational technologies in the educational process, as well as a weak growth in real terms of budget expenditures for applied scientific research in the field of education, since it is scientific research that should determine the direction of reforming the various levels of education and New mechanisms for managing education in changing socio-economic conditions, to set an adequate update of the content of general and professional education.
俄罗斯的Abstract:目前的工作包括教育系统及其级别的预算融资预测系统以及在这一领域必须解决的问题。在2024年之前，有三种教育发展方案，确定了实现这些教育的后果和风险。在预测阶段，主要受益者是学前教育和一般教育。中等职业教育在预算融资方面几乎在所有预测中都失败了。对于教育系统的发展风险，主要是由于缺乏资金来提高教育工作者的技能，这既不可能更新教育内容，也不可能纳入新教育技术的教育进程，而且教育应用科学研究的实际预算支出增长乏力，由于科学研究必须确定不同教育水平的改革方向，以及在不断变化的社会经济环境中管理教育的新机制，必须充分更新一般教育和职业教育的内容。英语Abstract:这张纸建筑系统是为教育系统和its levels而设计的，就像在这个地区被发现一样。这三幅画是为2024年的启蒙而设计的，这是一幅杰作。这是一个很大的挑战，在预科学校和一般教育中。在《财富》杂志上，《财富》杂志上的第二轮投票失败了。With regard to the risks of the development of the system, it’s primarily教育related to the underfunding of教育programs for teachers without主演it is impossible either to update教育之内容,or to process technologies in the file new教育教育,as well as a weak《in real条款of pl expenditures for applied scientific research in the field of教育这是一项科学研究，旨在重新定义教育的多样性和新的机制来管理传统教育的传统和专业教育。
{"title":"Прогнозирование Потребности в Бюджетных Средствах При Реализации Реформ в Системе Образования (Forecasting the Need for Budget Funds in the Implementation of Reforms in the Education System)","authors":"T. Klyachko, Галина Токарева","doi":"10.2139/ssrn.3167335","DOIUrl":"https://doi.org/10.2139/ssrn.3167335","url":null,"abstract":"Russian Abstract: В настоящей работе строится система прогнозов бюджетного финансирования системы образования и ее уровней, а также задач, которые должны решаться в данной сфере. Представлены три сценария развития образования до 2024 г., определены последствия и риски их реализации. Показано, что основными бенефициарами в получении бюджетных средств в прогнозном периоде являются дошкольное и общее образование. Среднее профессиональное образование проигрывает в бюджетном финансировании практически во всех вариантах прогноза. Что касается рисков развития системы образования то они, прежде всего, связаны с недофинансированием программ повышения квалификации педагогических работников, без которого невозможно ни обновление содержания образования, ни включение в образовательный процесс новых образовательных технологий, а также со слабым ростом в реальном выражении бюджетных расходов на прикладные научные исследования в области образования, поскольку именно научные исследования должны определить направления реформирования различных уровней образования и новые механизмы управления образованием в изменяющихся социально-экономических условиях, задать адекватное обновление содержания общего и профессионального образования. \u0000English Abstract: This paper builds a system of forecasts for the budget financing of the education system and its levels, as well as tasks to be solved in this area. Three scenarios for the development of education up to 2024 are presented, the consequences and risks of their implementation are determined. It is shown that the main beneficiaries in obtaining budget funds in the forecast period are pre-school and general education. Secondary vocational education loses in budget financing in almost all variants of the forecast. With regard to the risks of the development of the education system, it's primarily related to the underfunding of educational programs for teachers, without which it is impossible either to update the content of education, or to include new educational technologies in the educational process, as well as a weak growth in real terms of budget expenditures for applied scientific research in the field of education, since it is scientific research that should determine the direction of reforming the various levels of education and New mechanisms for managing education in changing socio-economic conditions, to set an adequate update of the content of general and professional education.","PeriodicalId":127865,"journal":{"name":"Political Economy: Budget","volume":"140 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125948026","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We develop a New Keynesian model with government bonds of mixed matu- rity and solve for optimal time-consistent policy using global solution techniques. This reveals several non-linearities absent from LQ analyses with one-period debt. Firstly, the steady-state balances an inflation and debt stabilization bias to gener- ate a small negative debt value with a slight undershooting of the inflation target. This falls far short of first-best (`war chest') asset levels. Secondly, starting from debt levels consistent with currently observed debt to GDP ratios the optimal pol- icy will gradually reduce that debt, but the policy mix changes radically along the transition path. At high debt levels there is a reliance on a relaxation of monetary policy to reduce debt through an expanded tax base and reduced debt service costs, while tax rates are used to moderate the increases in inflation. However, as debt levels fall, the use of monetary policy in this way diminishes and the authority turns to fiscal policy to continue debt reduction. This endogenous switch in the policy mix occurs at higher debt levels, the longer the average debt maturity. Allowing the policymaker to optimally vary debt maturity in response to shocks and across varying levels of debt, we find that variations in maturity are largely used to sup- port changes in the underlying time-consistent policy mix rather than the speed of fiscal correction. Finally, introducing a mild degree of policy maker myopia can re- produce steady-state debt to GDP ratios and inflation rates not dissimilar to those observed empirically, without changing any of the qualitative results presented in the paper.
{"title":"Optimal Time-Consistent Monetary, Fiscal and Debt Maturity Policy","authors":"E. Leeper, C. Leith, Ding Liu","doi":"10.2139/ssrn.2719457","DOIUrl":"https://doi.org/10.2139/ssrn.2719457","url":null,"abstract":"We develop a New Keynesian model with government bonds of mixed matu- rity and solve for optimal time-consistent policy using global solution techniques. This reveals several non-linearities absent from LQ analyses with one-period debt. Firstly, the steady-state balances an inflation and debt stabilization bias to gener- ate a small negative debt value with a slight undershooting of the inflation target. This falls far short of first-best (`war chest') asset levels. Secondly, starting from debt levels consistent with currently observed debt to GDP ratios the optimal pol- icy will gradually reduce that debt, but the policy mix changes radically along the transition path. At high debt levels there is a reliance on a relaxation of monetary policy to reduce debt through an expanded tax base and reduced debt service costs, while tax rates are used to moderate the increases in inflation. However, as debt levels fall, the use of monetary policy in this way diminishes and the authority turns to fiscal policy to continue debt reduction. This endogenous switch in the policy mix occurs at higher debt levels, the longer the average debt maturity. Allowing the policymaker to optimally vary debt maturity in response to shocks and across varying levels of debt, we find that variations in maturity are largely used to sup- port changes in the underlying time-consistent policy mix rather than the speed of fiscal correction. Finally, introducing a mild degree of policy maker myopia can re- produce steady-state debt to GDP ratios and inflation rates not dissimilar to those observed empirically, without changing any of the qualitative results presented in the paper.","PeriodicalId":127865,"journal":{"name":"Political Economy: Budget","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115421021","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We analyse German citizens’ knowledge about monetary policy and the European Central Bank (ECB), as well as the public’s use of mass communication media to obtain information about the ECB. We employ a unique representative public opinion survey of German households conducted in 2011. We find that a person’s desire to be informed about the ECB, together with the use of various media channels to keep informed, are decisive for both (i) the person’s perception of how much he or she knows about the ECB and (ii) the person’s actual knowledge. The media-related influence varies by level of education and is stronger for subjective knowledge. Women are significantly less interested in and knowledgeable about the ECB. We conclude that the ECB is not only well advised to continue with education programmes designed to convince the public of the importance of knowing about monetary policy, but to take the gender-specific differences into account in doing so.
{"title":"The Influence of Media Use on Layperson Monetary Policy Knowledge in Germany","authors":"B. Hayo, Edith Neuenkirch","doi":"10.1111/sjpe.12141","DOIUrl":"https://doi.org/10.1111/sjpe.12141","url":null,"abstract":"We analyse German citizens’ knowledge about monetary policy and the European Central Bank (ECB), as well as the public’s use of mass communication media to obtain information about the ECB. We employ a unique representative public opinion survey of German households conducted in 2011. We find that a person’s desire to be informed about the ECB, together with the use of various media channels to keep informed, are decisive for both (i) the person’s perception of how much he or she knows about the ECB and (ii) the person’s actual knowledge. The media-related influence varies by level of education and is stronger for subjective knowledge. Women are significantly less interested in and knowledgeable about the ECB. We conclude that the ECB is not only well advised to continue with education programmes designed to convince the public of the importance of knowing about monetary policy, but to take the gender-specific differences into account in doing so.","PeriodicalId":127865,"journal":{"name":"Political Economy: Budget","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132073213","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
I develop a model of real exchange rate determination that attributes a central role to the intertemporal government budget condition, which equates the market value of government debt to the present value of government surpluses. To enforce this equilibrium condition in the presence of nominal rigidities, the real exchange rate has to adjust in response to shocks to government surpluses. The model predicts that fiscal shocks account for real exchange rate movements, and the factor structure in fiscal shocks aligns with the factor structure in currency returns. Both predictions are confirmed in the sample of developed countries.
{"title":"Fiscal Cyclicality and Currency Risk Premia","authors":"Zhengyang Jiang","doi":"10.2139/ssrn.3059245","DOIUrl":"https://doi.org/10.2139/ssrn.3059245","url":null,"abstract":"\u0000 I develop a model of real exchange rate determination that attributes a central role to the intertemporal government budget condition, which equates the market value of government debt to the present value of government surpluses. To enforce this equilibrium condition in the presence of nominal rigidities, the real exchange rate has to adjust in response to shocks to government surpluses. The model predicts that fiscal shocks account for real exchange rate movements, and the factor structure in fiscal shocks aligns with the factor structure in currency returns. Both predictions are confirmed in the sample of developed countries.","PeriodicalId":127865,"journal":{"name":"Political Economy: Budget","volume":"181 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121586683","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-12-20DOI: 10.9734/AJEBA/2017/38515
Dr. Ugochukwu Nwoye, Ekesiobi Chukwunonso, Justina N. Obiorah
With increasing activities of separatists and agitators for self independence taking a heavy toll on the sovereignty of Nigeria, more curiosity has once again been drawn to the accountability strength, transparency quality and the performance trend of the national economy under the post-1999 democratic dispensations in Nigeria. Given the country’s recent exit from economic recession, the scandalous strides of N9 trillion NNPC contracts still awaiting clarifications and the incumbent administration’s recent claim of N1.3 trillion worth of Capital projects execution in 2016, the study intends to substantiate graphically the complementary impact nature of Nigeria’s budget expenditures and her economic performances in the post 1999 democratic dispensations towards appreciating judgmentally, the quality of accountability possibly upheld during this period in the light of exceptional incidences of questionable transparency in public service. This approach will help shed more light into possible implications obtainable given the trend of the nation’s economic growth as witnessed during the years covered. The annual GDP growth rate statistics, annual GDP achieved (in US$), the US to Naira exchange rates, and the annual national Budget of Nigeria (emphasis on Recurrent and Capital Expenditures) as published by the World Bank Group for the years 1999 – 2016 were all adopted and holistically subjected to professional evaluation and assessment using graphics/charts so as to boost readers’ understandability. Evidence from the statistics shows that Nigeria is yet to appreciate the place of accountability, transparency, and absolute compliance to due process in the achievement and sustenance of upward geared economic growth. Further graphical evaluations carried out reveals that while the country’s annual budget figures continued to rise in trillions of Naira especially in the recurrent expenditures, little of this acclaimed effort is felt by the economy and Nigerians, thus depicting possible tendencies of mismanagement of public funds, intransparenvy and poor accountability approach to the same. The study has as a result proffered several antigens to these visible lapses that has since 1999 left Nigeria struggling atop corruption perception index table of Transparency International (TI).
{"title":"Accountability and Transparency Hurdles of Post Democratic Regime in Nigeria: Economic Implications","authors":"Dr. Ugochukwu Nwoye, Ekesiobi Chukwunonso, Justina N. Obiorah","doi":"10.9734/AJEBA/2017/38515","DOIUrl":"https://doi.org/10.9734/AJEBA/2017/38515","url":null,"abstract":"With increasing activities of separatists and agitators for self independence taking a heavy toll on the sovereignty of Nigeria, more curiosity has once again been drawn to the accountability strength, transparency quality and the performance trend of the national economy under the post-1999 democratic dispensations in Nigeria. Given the country’s recent exit from economic recession, the scandalous strides of N9 trillion NNPC contracts still awaiting clarifications and the incumbent administration’s recent claim of N1.3 trillion worth of Capital projects execution in 2016, the study intends to substantiate graphically the complementary impact nature of Nigeria’s budget expenditures and her economic performances in the post 1999 democratic dispensations towards appreciating judgmentally, the quality of accountability possibly upheld during this period in the light of exceptional incidences of questionable transparency in public service. This approach will help shed more light into possible implications obtainable given the trend of the nation’s economic growth as witnessed during the years covered. The annual GDP growth rate statistics, annual GDP achieved (in US$), the US to Naira exchange rates, and the annual national Budget of Nigeria (emphasis on Recurrent and Capital Expenditures) as published by the World Bank Group for the years 1999 – 2016 were all adopted and holistically subjected to professional evaluation and assessment using graphics/charts so as to boost readers’ understandability. Evidence from the statistics shows that Nigeria is yet to appreciate the place of accountability, transparency, and absolute compliance to due process in the achievement and sustenance of upward geared economic growth. Further graphical evaluations carried out reveals that while the country’s annual budget figures continued to rise in trillions of Naira especially in the recurrent expenditures, little of this acclaimed effort is felt by the economy and Nigerians, thus depicting possible tendencies of mismanagement of public funds, intransparenvy and poor accountability approach to the same. The study has as a result proffered several antigens to these visible lapses that has since 1999 left Nigeria struggling atop corruption perception index table of Transparency International (TI).","PeriodicalId":127865,"journal":{"name":"Political Economy: Budget","volume":"115 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128183520","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Objective: Bonds experience high trading volume right after their issuance. Outstanding amount of a bond is built by multiple follow on reissuances. Trading volume also picks up when bond is reissued. This paper investigates impact of bond’s age since issuance on its weekly trading volume. In addition it also investigates impact of trade size, outstanding amount, Foreign Institutional Investor (FII) trading, Repo rate volatility, Yield to Maturity volatility and Mumbai Interbank Offer Rate (MIBOR) volatility in the Indian context. Design, Methodology & Approach: This paper builds on Hong and Warga (2000), Kalimipalli and Warga (2002), and Diaz et. al. (2006). Non-linear regression is used to investigate exponential decay of weekly trading market share of 5, 10 and 30 Year bonds with respect to age. The model also explores linear relationship of other factors on the weekly trading volume. Findings: (This) Our research finds evidence of decay in trading with respect to bond age, reissuance and trade size. The model suggests two issuances of 5 year, three issuances of 10 Year and one issuance of 30 year bond per year for optimum trading volume in the Government of India (GoI) bond market. Implications: GoI publishes a tentative schedule with no indication of which tenure will be auctioned. This uncertainty impacts the trading as market lacks anticipation of maturity segments in the yield curve. A regular schedule of 5, 10 and 30 year bonds provides for better public debt management with enhanced trading liquidity and lower cost of public debt. Originality & Value: Literature review provides no evidence of similar study in Indian context. Hence it is the first study of this kind. This study provides a bond issuance approach for enhanced public debt management, market trading and lower cost of public debt. Research Limitations: Due to lack of data, over the counter (OTC) trades are not incorporated in the analysis. Inclusion of treasury bills trades in the model may provide better understanding of trading risk.
目的:债券发行后交易量大。债券的未偿金额是通过多次后续再发行来建立的。当债券重新发行时，交易量也会增加。本文研究了债券发行年限对周交易量的影响。此外，它还调查了交易规模、未偿金额、外国机构投资者(FII)交易、回购利率波动、到期收益率波动和孟买银行间同业拆借利率(MIBOR)波动在印度背景下的影响。设计、方法论和方法:本文以Hong and Warga(2000)、Kalimipalli and Warga(2002)以及Diaz et al.(2006)为基础。采用非线性回归研究了5年期、10年期和30年期债券周交易市场份额随年龄的指数衰减。该模型还探讨了其他因素对周交易量的线性关系。研究发现:(1)我们的研究发现了债券年龄、再发行和交易规模相关的交易衰减的证据。该模型建议印度政府债券市场每年发行两次5年期债券，发行三次10年期债券和发行一次30年期债券，以达到最佳交易量。含义:印度政府公布了一份暂定时间表，没有表明将拍卖哪些土地使用权。由于市场缺乏对收益率曲线上到期部分的预期，这种不确定性影响了交易。定期发行5年期、10年期和30年期债券有助于改善公共债务管理，提高交易流动性，降低公共债务成本。原创性和价值:文献综述没有提供印度背景下类似研究的证据。因此，这是第一次这样的研究。本研究为加强公共债务管理、市场交易和降低公共债务成本提供了一种债券发行途径。研究局限:由于缺乏数据，场外交易没有纳入分析。在模型中纳入国库券交易可以更好地理解交易风险。
{"title":"Liquidity of Government of India Bonds: Trading Volume Based Analysis","authors":"K. Rathi, H. Pradhan","doi":"10.2139/ssrn.3085134","DOIUrl":"https://doi.org/10.2139/ssrn.3085134","url":null,"abstract":"Objective: Bonds experience high trading volume right after their issuance. Outstanding amount of a bond is built by multiple follow on reissuances. Trading volume also picks up when bond is reissued. This paper investigates impact of bond’s age since issuance on its weekly trading volume. In addition it also investigates impact of trade size, outstanding amount, Foreign Institutional Investor (FII) trading, Repo rate volatility, Yield to Maturity volatility and Mumbai Interbank Offer Rate (MIBOR) volatility in the Indian context. Design, Methodology & Approach: This paper builds on Hong and Warga (2000), Kalimipalli and Warga (2002), and Diaz et. al. (2006). Non-linear regression is used to investigate exponential decay of weekly trading market share of 5, 10 and 30 Year bonds with respect to age. The model also explores linear relationship of other factors on the weekly trading volume. Findings: (This) Our research finds evidence of decay in trading with respect to bond age, reissuance and trade size. The model suggests two issuances of 5 year, three issuances of 10 Year and one issuance of 30 year bond per year for optimum trading volume in the Government of India (GoI) bond market. Implications: GoI publishes a tentative schedule with no indication of which tenure will be auctioned. This uncertainty impacts the trading as market lacks anticipation of maturity segments in the yield curve. A regular schedule of 5, 10 and 30 year bonds provides for better public debt management with enhanced trading liquidity and lower cost of public debt. Originality & Value: Literature review provides no evidence of similar study in Indian context. Hence it is the first study of this kind. This study provides a bond issuance approach for enhanced public debt management, market trading and lower cost of public debt. Research Limitations: Due to lack of data, over the counter (OTC) trades are not incorporated in the analysis. Inclusion of treasury bills trades in the model may provide better understanding of trading risk.","PeriodicalId":127865,"journal":{"name":"Political Economy: Budget","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129709250","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study the employment growth for entrepreneurial ventures that received a government-sponsored participative loan (PL), a hybrid form of financing between debt and equity. We use propensity-score matching (PSM) and instrumental variable analysis (2SLS) to study a sample of 512 entrepreneurial ventures that received a PL from a Spanish government agency between 2005 and 2011. We find evidence that PLs significantly boosted their beneficiaries’ employment. In the two years following loan issuance, a 1-million-Euro PL generated an increase in average employment by between 12.1 (PSM) and 14.7 (2SLS) units relative to the average for the two years prior to loan issuance. The effect on growth is significant and stable, and PLs increase their beneficiaries’ annual employment growth by 10.6%.
{"title":"The Impact of Government-Supported Participative Loans on Employment Growth in Entrepreneurial Ventures","authors":"F. Bertoni, Jose Martí, Carmelo Reverte","doi":"10.2139/ssrn.3088072","DOIUrl":"https://doi.org/10.2139/ssrn.3088072","url":null,"abstract":"We study the employment growth for entrepreneurial ventures that received a government-sponsored participative loan (PL), a hybrid form of financing between debt and equity. We use propensity-score matching (PSM) and instrumental variable analysis (2SLS) to study a sample of 512 entrepreneurial ventures that received a PL from a Spanish government agency between 2005 and 2011. We find evidence that PLs significantly boosted their beneficiaries’ employment. In the two years following loan issuance, a 1-million-Euro PL generated an increase in average employment by between 12.1 (PSM) and 14.7 (2SLS) units relative to the average for the two years prior to loan issuance. The effect on growth is significant and stable, and PLs increase their beneficiaries’ annual employment growth by 10.6%.","PeriodicalId":127865,"journal":{"name":"Political Economy: Budget","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123125730","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This articles analyses the financial industry landscape following the recent financial crisis and new players and channels of obtaining external financing for start‐ups and SMEs. We show that the government intervention to overcome the credit crunch problems was of limited effect, be it national funds of loan guarantees or regulatory changes on market exchanges to incentivize SMEs to tap the public capital market. We further look at the recent trends in VC industry and analyse the phenomenon of crowdfunding that became a viable alternative to the traditional credit channels. Lastly, we look at the rapidly evolving Financial Technology (Fintech) sector and ICOs as its means of financing.
{"title":"SMEs and Start‐Ups Financing: From Governmental Support to ICOs and Token Sales","authors":"D. Boreiko","doi":"10.2139/ssrn.3108677","DOIUrl":"https://doi.org/10.2139/ssrn.3108677","url":null,"abstract":"This articles analyses the financial industry landscape following the recent financial crisis and new players and channels of obtaining external financing for start‐ups and SMEs. We show that the government intervention to overcome the credit crunch problems was of limited effect, be it national funds of loan guarantees or regulatory changes on market exchanges to incentivize SMEs to tap the public capital market. We further look at the recent trends in VC industry and analyse the phenomenon of crowdfunding that became a viable alternative to the traditional credit channels. Lastly, we look at the rapidly evolving Financial Technology (Fintech) sector and ICOs as its means of financing.","PeriodicalId":127865,"journal":{"name":"Political Economy: Budget","volume":"32 5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130730871","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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