Determinants of Personal Income Taxes for Barbados

The purpose of this study was to identify determinants of personal income taxes in Barbados and, using the Engle-Granger two-step procedures with annual data from 1976 to 2008, ascertain how these variables would impact on the dependent variable in the long and short run. The study showed that in the long run, the variables that would impact upon personal income tax receipts were marginal tax rate, real per capita income, and the rate of unemployment, while in the short run, personal income taxes were affected by current real per capita income in addition to lagged values of real per capita income, the marginal tax rate, and the rate of unemployment, respectively.     

The central provident fund scheme in Singapore: Challenges and reform

The article explains the features and evolution of the Central Provident Fund (CPF) scheme in Singapore and the reforms it has undergone in the face of recent challenges. At its inception, it was designed as an exclusively state managed savings scheme to meet the retirement needs of its members. Over the years, it has been gradually liberalised, allowing account holders to use their savings for additional purposes. In recent years two key challenges have arisen. One has been the problems arising out of liberalisation itself, which has left too many CPF members with insufficient savings for their retirement as a result of mistaken or imprudent choices in committing their savings to the additional options available. In response, the Singapore government has tempered or reversed the process of liberalisation, imposing or maintaining constraints on the use of CPF savings so as to ensure sufficient savings to meet retirement needs. The second challenge is the need to restructure the Singapore economy in the face of regional and global competition so as to sustain the profitability of the business sector and enhance employability of the older workers. The response of the government has been to allow the CPF contribution rates of employers to be adjusted and the CPF salary ceiling to be lowered so as to reduce business costs and increase the chances of employment of older workers. However, using the CPF scheme as a macroeconomic tool by reducing employers’ contribution rates may lead to less scope for CPF members to accumulate sufficient savings for their retirement. This would mean that the response to the second challenge would be at odds with the response to the first challenge.     

Contracting out local road and park services: economic effects and their strategic,contractual and competitive conditions

ABSTRACT

The economic rationale for contracting out local services is increasingly contested by empirical research. This article aims to contribute to this literature, first by scrutinising the economic effects of contracting out in local road and park services and, second, by exploring how characteristics such as markets, contracts, municipal strategies and contracting history influence these outcomes. Drawing on original survey data from Danish municipalities, we find that competitive tendering has on average reduced costs. Further analysis shows that savings are not associated with lower quality, thus indicating that ‘quality shading’ was not taking place. Another finding is that municipalities that repeatedly contract the services experience smaller savings, suggesting that competitive tendering is subject to declining marginal returns. Finally, we find that larger municipalities and those emphasising expenditure cuts realise larger savings, whereas the characteristics of markets and contracts do not seem to explain variations in cost savings.     

Political instability and savings in less developed countries: Evidence from Sub‐Saharan Africa

A four‐equation model is used to investigate the effects of political instability (PI) on the savings rate in Sub‐Saharan Africa. Utilising a comprehensive measure of PI, we find that political instability has a deleterious effect on the savings rate both directly and indirectly through a reduction in investment and economic growth. The negative effects of PI on savings rate occurs contemporaneously as well as with a lag. We also find that economic growth has a stabilising effect on the political system and that not accounting for these effects through a simultaneous equations model results in biased coefficient estimates. These relationships are robust with respect to model specification. The implication of our results is that ‘economic factors’ alone cannot explain the development process in Less Developed Countries.     

Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam

Using a unique panel of household businesses for Vietnam, this paper sheds light on the links between households’ and entrepreneurs’ social networks and business performance. We address two related questions. The first question asks if we can find evidence of a differentiated effect of employment of members of the family versus hired workers on the business performance. A second question tackles the respective effects of various dimensions of social networks on business technical efficiency. The hypothesis is that, beyond the channel of labour productivity, entrepreneurs that are confronted with an unfavourable social environment may produce less efficiently and realise a lower output than what could be possible with the same amount of resources. We find evidence of a marginal productivity differential between family and hired labour and highlight results consistent with the presence of adverse social network effects faced by households running a business, in particular ethnic minorities. We also stress the importance of professional networks for successful entrepreneurship.     

On the relation between savings,distribution and inflation

A model of inflation, distribution and savings analysed by Thirlwall is evaluated. We replace the Kaldor saving function, instead following Pasinetti, where capitalists’ and workers’ savings are assumed proportional to their respective incomes. With this formulation, estimates of the inflation required to change the overall savings rate are generally larger than Thirlwall's. The magnitude of the difference is related, inter alia, to the share of capitalists’ profits in total income. Alternative estimates are presented, and it is shown that in general very large inflation changes are required to raise savings through redistribution. We also discuss the empirical evidence on the value of the wage adjustment parameter in the models.     

A land full of opportunities? Agrarian frontiers,policy narratives and the political economy of peace in Colombia

Abstract

In many post-war countries, the relative security brought to rural areas is construed by government officials and business actors as an opportunity for development. This is particularly true for marginal areas, where opportunities for economic development had previously been hindered by the threat of violence. This provides a favourable context for the construction of commodity frontiers. Through the case of Colombia, I show that one of the main challenges faced by frontier policy narratives amounts to differentiating wartime dispossession from peacetime legitimate accumulation. This poses intractable challenges to policymakers and business actors, as it fuels the contradictions between peace consolidation and post-war development.     

The impact of the Owen falls hydro‐electric project on the economy of Uganda 1

Inflation induced by an increase in the money supply may be conducive to economic growth, because it can be positively related to the savings ratio. This relationship is, however, limited by a certain rate of money supply which is associated with the maximum overall savings ratio. Treating money as a consumers’ good based upon Levhari‐Patinkin [1968], this study estimates a quadratic‐form savings function using international cross‐section data. It shows that the optimal rates of money supply are 11–12 per cent and 6–8 per cent in underdeveloped and developed countries respectively.     

A Balanced Budget with Side Effects—A Case Study of Implementation of a Hospital Cost Savings Program in Sweden

This study examines the implementation of a hospital cost savings program in a Swedish county hospital to understand how and why a downsizing intervention works and what outcomes it produces. Data were gathered from interviews and documents. Substantial differences were found among the healthcare professionals’ perceptions of the downsizing process. These diverse perceptions likely limited the scope of staffs’ participation and innovations of new savings strategies. Our findings stress the need for impact analyses addressing both intended aims and unintended side effects. Full attention should be paid to communication processes required to establish a trustful and committed change climate.     

Consumption,savings and investment by social class in Bangladesh: Does the rural sector support the Urban sector?

This article employs input‐output analysis and information from a social accounting matrix and the concept of net savings to examine savings, consumption and investment behaviour by various social classes in Bangladesh in urban and rural areas. Considerable differences between social classes can be identified in all three respects. A majority of the social classes in the rural sector does not appear to generate enough savings to sustain its consumption whereas the urban social classes do. There seems to be little difference in consumption pattern of the rural rich and the urban rich. There is considerable urban‐rural difference in the import intensities of consumption. The findings of this study based on the Hazari model do not establish the existence of urban bias but the problem seems to be one of ‘rich‐bias’ rather than urban‐bias per se. However, the Hazari model cannot capture all possible sources of urban bias and circumstantial evidence indicates concentration of advantages in the urban areas.     

Food Price Changes and Household Welfare: What Do We Learn from Two Different Approaches?

The use of a marginal approach can significantly distort the predicted effects of large price variations on monetary welfare over the medium- to longer-term. This paper aims at shedding some light on the differences between a marginal approach and a non-separable agricultural household model with behavioural responses. When behavioural adjustments are allowed, households can adapt their consumption and production patterns by resulting in lower deteriorations in household welfare. The second-order effects introduced in the approach with responses reduce the negative effects due to the first-order consumption effects, with significant differences across quintiles. On average, the second-order effects represent up to roughly 40 per cent of total first-order effects.     

“HEALTHFUL GOODS”: HEALTH,HYGIENE, AND COMMERCIAL CULTURE IN EARLY TWENTIETH-CENTURY SHANGHAI

Abstract

This article examines the development of Shanghai’s household-chemical industry, which produced and sold soap, toothpowder, and toothpaste, and other personal hygiene items, and discusses how the ideas of health and hygiene became an integral part of the city’s commercial culture in the early twentieth century. Through various commercial strategies, Shanghai’s businessmen promoted their commodities and hygiene practices simultaneously. They also actively participated in mass movements organized by the Nationalist state, since such movements provided a marketing opportunity for them. This article argues that precisely because they were doing business, Shanghai’s small entrepreneurs successfully connected personal hygiene, national strength, and the act of buying.     

Understanding the Accumulation of Local Government Savings: A Dynamic Analysis

Government savings can be a conundrum that perplexes taxpayers. Excessive savings indicate that taxpayers either pay unnecessarily high taxes, or they do not receive adequate returns on services. Insufficient savings leave government officials little financial flexibility. The Great Recession and its aftermath have renewed interest in understanding government savings. This article uses dynamic panel modeling to analyze the determinants of municipal discretionary savings. Results show that risk factors are the primary drivers of municipal savings, and high-risk factors have greater impact on the amount of savings. This finding confirms organization theory’s view of savings as a crucial buffer against risk.     

Admitting a Bad Influence: Contracting the Public Service

Abstract

Emulation of the private sector is a longstanding controversy in public administration, but could it constitute a bad influence, of the kind that parents seek to guard against by scrutinizing their children's peers? Effectiveness provides a perspective on how helpful or harmful private sector influence has been for the public service. The practice of contracting-out under the A-76 process receives particular scrutiny relative to maintaining the effectiveness of public agencies. A second perspective on private sector influence examines, through the theoretical perspective of transaction-cost economics, the promise of cost savings that justified recent acceleration of contracting-out. The author, himself a government contractor, also bases his analysis on personal experience.     

Environmental Income as a Pathway Out of Poverty? Empirical Evidence on Asset Accumulation in Nepal

Using unique, environmentally augmented household panel data reflecting households’ annual cash and subsistence income portfolios, we model change over time in the value of four assets – livestock, implements, savings, and jewellery. A seemingly unrelated regression model reveals that although environmental resources on average contribute 16 per cent of the total household income, the contribution to asset accumulation is limited. Hence, environmental income does not constitute a pathway out of poverty in Nepal under the current set of regulations and tenure regimes. Asset accumulation was instead associated (both negatively and positively) with agricultural income (particularly as subsistence income), wage and business income. Most environmental income was obtained as subsistence income indicating that the environmental resources that households have access to present little opportunity for cash generation. Securing access of the poor to environmental resources may increase its role in poverty alleviation.     

Business priorities and the relative importance of state and local economic-development incentives

State and local governments commonly use a variety of incentives to encourage economic development and business retention. Policies which include economic development incentives are commonly criticized as being ineffective and wasteful uses of public funds. This paper addresses the issue of wastefulness through a business community's assessment of the relative value of eighteen incentives commonly used for business retention and development. Results are based on survey responses from nearly 700 businesses located in Wichita, Kansas. This study illuminates differences in value assigned to incentives by different types of business. Findings indicate that state and local governments that offer incentives without consideration of business type are in many cases delivering “windfalls” to the private sector. Even such highly touted incentives as property tax abatements are not valued equally by all types of businesses. This paper provides state and local governments with an improved understanding of business investment motivation and the relative value of different incentives to effective economic development policy.     

Savings at the Periphery of Markets: Evidence from Forager-Farmers in the Bolivian Amazon

Abstract

We used survey and ethnographic data to study savings in a highly autarkic society of native Amazonians in Bolivia (Tsimane’). We equated savings with the amount of maize and rice in storage, area planted with plantains and manioc, and number of edible domesticated animals owned by a household or an adult. We found no large inter-annual change in savings possibly due to low income, impulsivity and a bundle of institutions and norms, such as borrowing, theft and reciprocity norms. The bundle attenuates the need for household formal savings at the periphery of markets.     

Place-Based Leadership and Public Service Innovation

This article discusses two matters that are becoming increasingly important in debates about local government: place-based leadership and public service innovation. The troubling international economic outlook means that many local authorities are focusing on ‘efficiency savings’ and the prevailing mantra in public policy circles is ‘do more with less’. This article questions this approach. It aims to contribute to what one chief executive described to us as ‘more with more’ thinking. This approach strives to release the community and business energies of a locality. If this can be achieved the total resources available to improve the local quality of life can be increased, even if state spending is shrinking. A conceptual framework for studying place-based leadership is presented. This distinguishes three, overlapping realms of leadership in any given locality – political leadership, managerial/professional leadership, and community and business leadership. It is argued that the areas of overlap between these realms can be viewed as innovation zones – spaces in which established approaches can be questioned and new trajectories developed. These zones can, however, also become conflict zones with little learning and exchange taking place. Place-based leadership can influence whether such political spaces are used to promote creative problem solving or whether they become arenas for dispute and friction between sectional perspectives. By drawing on a study of the current Digital+Green initiative in Bristol, UK, the article suggests that an imaginative approach to place-based leadership – one that accepts intelligent risk taking – offers potential for improving the local quality of life as well as strengthening local democracy.     

The wto in Bali: what mc9 means for the Doha Development Agenda and why it matters

The conclusion of the World Trade Organization’s (wto) ninth ministerial meeting – held in Bali 3–7 December 2013 – is at one and the same time momentous, marginal and business-as-usual. It is momentous because it marks the first multilateral agreement reached in the wto since the organisation began operations on 1 January 1995; it is marginal because the deal reached will have only a limited impact on the global trading system; and it is business as usual because the Bali package will be of disproportionally greater value to the industrial states than to their developing and least developed counterparts. We examine what happened in Bali, covering the principal issues at stake and the content of the outcome, what this means for the wto and for the Doha Development Agenda (dda), and why it all matters. We argue that, while the Bali ministerial is significant and the agreements reached important, the conclusion of the meeting and the package agreed represent only a limited movement forward in addressing the fundamental problems and inequities of the wto system.     

Modelling the demand for foreign savings in developing countries: Testing a hypothesis with Latin American data

The demand for foreign savings is an important feature of the economy in many LDCs, and it would be helpful to have a better understanding of its determinants. This paper considers one approach to modelling the demand for foreign savings in LDCs. If the demand for investment shifts out more buoyantly than does the supply of domestic saving in response to current macro‐economic conditions, persistent demand for foreign savings will be generated as a normal feature of the development process. We test this hypothesis with elasticities computed from the parameters of investment and domestic saving equations estimated for a sample of 21 Latin American countries. The empirical results show that in approximately half of the countries in the sample (and most notably in Brazil and in Mexico), the demand for foreign savings is rooted in the parameters of the investment and domestic saving functions.