Suchergebnisse

The financial crisis, after pushing governments to adopt exceptional measures to bail out banks and launch challenging plans to revive the economy, has come to expose the sovereign debt of many countries at risk of ''default''. For this reason, the European institutions and national governments have had to intervene and to develop tools for crisis management, such as loans to Greece and the mechanism of European financial assistance, both to strengthen the devices of crisis prevention, based on fiscal consolidation. Pending the completion of the institutional strategy aimed at coordinating European economic policy and budget, all states were required to adopt drastic measures to rebalance national accounts and return to the Maastricht's criteria. This paper aims to analyze the performance of financial markets over the past tree months, thus representing a true report of what that was and what will happen.

Wagner's Law is the first model of public expenditure in the history of public finance. It suggests that during the process of economic development the share of public spending in national income tends to expand (Wagner, 1883). Nevertheless, Peacock and Scott in 2000 wrote a paper entitled "The curious attraction of Wagner's law", explaining the reasons for why this (apparently) outworn theory is still studied by modern economists. On the other hand, Keynes (1936) considered public spending as an exogenous factor to be used as a policy instrument to influence growth. Moreover, Peacock and Wiseman (1961) presented the displacement effect, according to which during times of war tax rates are increased to generate more revenues, sustaining the increase in defense spending. While Peacock and Wiseman (1979) surveys the literature on public expenditure growth. This paper aims to analyze the relationship between public expenditure and aggregate income in EU countries, for the period 1980-2013, using panel data methodologies. After a brief introduction, a survey of the economic literature on this issue is discussed. Then, panel data tests on stationarity, cross-dependence, cointegration, and causality are shown. Finally, some notes on policy implications conclude the paper. ; http://www.econjournals.com/index.php/ijefi/article/view/1317/pdf

ABSTRACT This paper aims to analyze the innovations introduced in the functions of the International Monetary Fund in the context of the 2008 economic and financial crisis. This promoted an action that aimed to strengthen the surveillance function through the adoption of the Integrated Surveillance. Thus, alongside the traditional conditionality based on an a posteriori implementation of adequate economic policies, a criterion of ex ante conditionality in the precautionary branches was also introduced or based on the economic characteristics of the country to be financed. Concerning traditional conditionality, it will be asked whether the IMF has adopted a less extensive approach than its role.

AbstractThis paper shows that the co-movement of public revenues in the European Monetary Union (EMU) is driven by an unobserved common factor. Our empirical analysis uses yearly data covering the period 1970–2014 for 12 selected EMU member countries. We have found that this common component has a significant impact on public revenues in the majority of the countries. We highlight this common pattern in a dynamic factor model (DFM). Since this factor is unobservable, it is difficult to agree on what it represents. We argue that the latent factor that emerges from the two different empirical approaches used might have a composite nature, being the result of both the more general convergence of the economic cycles of the countries in the area and the increasingly better tuned tax structure. However, the original aspect of our paper is the use of a back-propagation neural networks (BPNN)-DF model to test the results of the time-series. At the level of computer programming, the results obtained represent the first empirical demonstration of the latent factor's presence.

Gravity models utilize the attractive force concept as an analogy to explain volume of trade or capital flows. This paper aims at proving that direct investment flows between China and a group of South-East Asian countries are determined by standard variables included in gravity models such as: Gross domestic products of home and host economy and distance between them. In our gravity model on foreign direct investment (FDI) we include not only gravity variables but also other variables that may explain what factors affecting Chinese outward FDI (OFDI): Political risk, cultural proximity, the degree of openness to international trade and a proxy for natural resources. This paper, after having defined the variables that are capable of influencing Chinese OFDI, will suggest a method of econometric calculation of the gravitational model based on Prais-Winsten regression; correlated panels corrected standard errors.