Economic Justice in Post-COVID India: A Macroeconomic Perspective

The COVID-19 pandemic and the subsequent lockdown wreaked havoc on substantial segments of the Indian population through unemployment and income loss, only highlighting the lack of institutional structures and policies to protect vulnerable sections of society from aggregate as well as idiosyncratic shocks. This chapter argues that the variations in the capacity to better one's life are conditional on socio-economic divisions a person belongs to and this makes such divisions fault lines. They constitute structural weaknesses in the economy leaving out millions of people without the capability to participate in the economy meaningfully and remuneratively. The author provides evidence of disproportionate impact of the pandemic along these fault lines and provides a policy framework for economic justice and prosperity to all in the post-COVID economy. He also highlights the importance of an interdisciplinary approach to policy-making given the complex nature of the problem. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023.

Institutional Quality and Education Quality in Developing Countries: Effects and Transmission Channels

The main objective of this study is to analyze the effect of institutional quality on education quality in developing countries. The literature review explores the channels through which institutional quality transits to affect education quality. The empirical analyses cover a sample of 82 developing countries. The main results obtained using ordinary least squares and two-stage least squares estimators show that institutional quality has a positive effect on student achievement and school completion, and a negative effect on educational failure. Concerning the role of transmission channels, the results show that a deterioration in institutional quality, characterized in particular by the presence of corruption, political instability, or the deterioration of government effectiveness, reduces the effectiveness of public spending on education and the quality of teaching through unethical behavior of teachers and the recruitment of untrained or less trained persons to carry out teaching tasks.

Social spending and chronic unemployment: evidence from OECD countries

PurposeSocial spending is at the forefront of the tools used to repair the damage caused by the global epidemic. However, one of the most critical questions in recent days is as follows: what are the effects of social expenditures in eliminating unemployment? The primary purpose of this article is to provide empirical evidence on the impact of social spending on chronic unemployment in the selected organization for economic co-operation and development (OECD) countries.Design/methodology/approachIn this study, the data of 30 selected OECD countries between 1991 and 2018 have been compiled. First, countries have been divided into four categories according to their spending intensity to determine the effects of social spending on the long-term unemployment rate. Then, the auto-regressive distributed lag (ARDL) approach and the error correction models (ECM) examine the variables' short- and long-term interactions.FindingsThe author found that the change in the share of social expenditures in GDP affects chronic unemployment similarly. This finding is consistent with the results of studies in the literature dealing with the relationship between public sector size and unemployment. However, the research findings are specifically about the effects of social expenditures on chronic unemployment. In this respect, the results reflect that expenditures with passive characteristics have an expansionary effect on long-term unemployment. In addition, the progressive effect of social expenditures on chronic unemployment is increasing in countries with high expenditure intensity. In countries with relatively low spending intensity, the impact of social spending is limited to the short run and is lower.Originality/valueMultiple studies have reported that public policies developed in line with the incentives of active employment and public or private sector investments reduce the unemployment rate by positively affecting the output/employment level. This study, unlike other studies, focuses on the effects of social expenditures on chronic unemployment. It also compares the effects of social spending on the long-term unemployment rate for countries with varying spending intensities. Therefore, this article tests the impact of social expenditures used against a concrete socioeconomic problem in the OECD sample. In this respect, the findings contribute to the literature by addressing the relationship between social spending and chronic unemployment.

The CFA Franc Zone: Economic Development and the Post-Covid Recovery

This book provides an empirical analysis of economic and political structures impacting the CFA franc zone. Concise and practical chapters explore the history of the CFA franc zone, challenges to development, geopolitical issues, the importance of flexible exchanges rates, growth trends, and the impact of the Covid crisis. Policy reform is examined to detail economic approaches that could reduce poverty and increase the quality of life within the area. This book aims to present a macroeconomic and exchange rate framework to promote development and post-Covid recovery within the CFA franc zone. It will be of interest to students, researchers, and policymakers involved in African economics, the political economy, and development economics. © Springer Nature Switzerland AG 2021. All rights reserved.

Rethinking fiscal rules.

The Covid 19 pandemic has caused both a decrease in tax revenues and an increase in public spending, forcing governments to increase fiscal deficits to unprecedented levels. Given these circumstances, it is foreseeable that fiscal rules will play a predominant role in the design of many countries' recovery policies. We develop a general equilibrium, overlapping generations model for a small, open economy in order to study the impact of several fiscal rules upon welfare, public expenditures and growth. We calibrate the model to the Peruvian economy. In this economy, fiscal rules have been widely used and, unlike in other Latin American countries, they have been relatively successful. We find that fiscal rules will generate better results in terms of output if, in addition to maintaining control over the fiscal result, they also preserve public investment. We also find that the performance of economies that implement structural rules tends to be better than the performance of economies that implement rules based on realized budget balance.

Are government bonds still safe havens in the context of COVID-19?

This study analyzes whether government bonds can act as safe havens in the context of COVID-19. Using a panel fixed effect model, data were collected for both advanced and emerging market economies from March 11, 2020, to June 30, 2021. Robustness tests were used to add to the credibility of the findings. Our evidence supports that government bonds maintained their safe haven status during the COVID-19 pandemic. Hence, investors can still use government bonds to hedge financial market risks in the uncertain environment associated with this pandemic. Additionally, the negative effects of the COVID-19 pandemic on government bond yields in emerging economies are larger than in advanced economies. Therefore, policymakers' measures should focus on reducing COVID-19 cases to alleviate panic and diminish economic fluctuations, especially for emerging economies. Regulators can also use short-term interest rates to guide market capital flow to avoid a liquidity crisis, reducing financial stress and market uncertainty. © 2021 Informa UK Limited, trading as Taylor & Francis Group.

THE COVID-19 PANDEMIC AND ECONOMIC INEQUALITY IN ITALY

The COVID-19 pandemic has been an unexpected and exceptional shock. The assessment of its distributional effects must take into account the variable macroeconomic dynamics in the period 2020-21. Initially, the crisis reproduced pre-existing inequalities, affecting those who had precarious jobs, mostly women, young people and foreigners, but it also hit many self-employed in traditional activities;in the subsequent economic recovery, the trends were reverted. The recession has likely generated a profound reshuffling of relative positions in the income scale, but overall the degree of economic inequality has changed little over the two-year period, mainly thanks to massive public spending. Absolute poverty, however, grew above the even high levels prior to the pandemic. © Società Editrice Il Mulino.

An Unstoppable and Navigating Journey Towards Development Reform in Complex Financial-Economic Systems: An Interval Analysis of Government Expenses (Past, Present, Future)

Purpose - The world is facing unprecedented opportunities to improve welfare and reduce poverty, so every day more and more public spending is becoming important in every country. The purpose of the research was prompted by the questions of whether there were development reforms and what is the complexity that has evolved in each variable (WS, GS, EU, ST, CE, and TE) for the time interval 2007-2020. How and are governing bodies able to continuously drive growth for decades by being more efficient users of government spending planning in complex financial and economic systems? Therefore, this paper aims to understand and advance by bringing a new approach to unstoppable and navigating reforms to government spending in complex financial and economic systems. Research methodology - The research was conducted through secondary data from annual financial reports and statements for both central and local levels. The time interval for 14 years was analyzed through two analyses and one matrix such as descriptive analysis (9 tests), correlation analysis (3 tests), and Proximity Matrix (Euclidean Distance between years and variables, Z stress test) as in the Tables (1-12), in the Figures (1-11) using SPSS version 23.0 for Windows.Findings - The findings showed that: a) the data had a normal distribution, b) there was an increase in expenditures for each year, especially in times of pandemic COVID-19, c) the data were obtained from financial reports and statements as well as different institutions over different years, d) there is a strong and positive relationship between the variables for government spending in complex systems, e) Public expenses have increased due to COVID-19 and the damage caused is continuing, affecting the decline in the well-being of the residents.limitations - The limitations of this paper are that only a considerable number of variables are studied and only in the state of Kosovo for 14 years (2007-2020). In this case, for other analyses by other researchers' other variables can be analyzed, more extended periods or comparability with other states.Practical implications - based on the above questions, it was confirmed that there were reforms in the complex financial and economic systems for government expenditures each year. Originality/Value - Such research has not been analyzed before and the findings of this research can help budget experts to accurately plan expenses based on the three periods studied (past, presentor the period of the Covid-19 pandemic and the future or the post-COVID-19 pandemic period). It is strongly recommended that governing bodies develop and improve the category of public investment expenditures.

Tax compliance, public spending and happiness in Europe

Purpose>This study aims to analyze whether tax compliance is the basis for the short-run dynamics of the development of welfare and happiness. The strengthening of tax compliance of corporates and citizens is not only important to achieve the goals assumed by fiscal policy but also is part of the values that can generate a higher level of welfare and happiness in Europe.Design/methodology/approach>This study uses a dynamic factor model to offer new indexes that allow to monitor tax compliance, public spending and happiness trajectories and to evaluate their short-run relationships. Next, an analysis of the cyclical characteristics in terms of duration, amplitude and intensity is provided using the Harding and Pagan method (2002).Findings>The empirical findings show that the European countries were able to reinforce tax compliance during the expansionary periods of the economy, and this has made it possible to increase public spending, and indirectly, happiness. Otherwise, this paper shows that the contractions of public resources during the global crisis, such as the case in the COVID-19, reduced the possibilities of well-being in Europe and made it more difficult to increase public spending and happiness.Research limitations/implications>This study tries to analyze the transmission channels and relationships of three very complex variables: tax compliance, public spending and happiness. Incorporating these three variables into this research, with a short-run perspective, the authors have opened a new line of research that enriched the previous analysis. Therefore, the authors’ results should be considered the first step, that this study is going to continue to unravel the complexity of these relationships.Practical implications>The design of policies aimed at improving individual, corporate and the well-being of nations needs them to incorporate elements of tax compliance as an objective that has economic and social implications. Individuals and corporates contribute to a fairer and more equitable society through compliance with tax obligations.Originality/value>To the best of the authors’ knowledge, this is the first paper that offers evidence on the short-run dynamics of tax revenue, public spending and happiness for a better understanding of their relationships and behavior during the different periods of the economy.

Tax compliance, public spending and happiness in Europe

Purpose This study aims to analyze whether tax compliance is the basis for the short-run dynamics of the development of welfare and happiness. The strengthening of tax compliance of corporates and citizens is not only important to achieve the goals assumed by fiscal policy but also is part of the values that can generate a higher level of welfare and happiness in Europe. Design/methodology/approach This study uses a dynamic factor model to offer new indexes that allow to monitor tax compliance, public spending and happiness trajectories and to evaluate their short-run relationships. Next, an analysis of the cyclical characteristics in terms of duration, amplitude and intensity is provided using the Harding and Pagan method (2002). Findings The empirical findings show that the European countries were able to reinforce tax compliance during the expansionary periods of the economy, and this has made it possible to increase public spending, and indirectly, happiness. Otherwise, this paper shows that the contractions of public resources during the global crisis, such as the case in the COVID-19, reduced the possibilities of well-being in Europe and made it more difficult to increase public spending and happiness. Research limitations/implications This study tries to analyze the transmission channels and relationships of three very complex variables: tax compliance, public spending and happiness. Incorporating these three variables into this research, with a short-run perspective, the authors have opened a new line of research that enriched the previous analysis. Therefore, the authors' results should be considered the first step, that this study is going to continue to unravel the complexity of these relationships. Practical implications The design of policies aimed at improving individual, corporate and the well-being of nations needs them to incorporate elements of tax compliance as an objective that has economic and social implications. Individuals and corporates contribute to a fairer and more equitable society through compliance with tax obligations. Originality/value To the best of the authors' knowledge, this is the first paper that offers evidence on the short-run dynamics of tax revenue, public spending and happiness for a better understanding of their relationships and behavior during the different periods of the economy.