Do Nasty and Pleasant Surprises Regarding Tax Revenue Explain Spending Drifts? The Case of the Swiss Cantons

Soguel, Nils; Ecabert, Cécile

doi:10.1080/01900692.2015.999585

Cited by 4 publications

(3 citation statements)

References 23 publications

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“…Furthermore, the studies explore the link of these two fiscal components at three different levels, that is, state level (Soguel & Ecabert, 2015;Westerlund, Mahdavi, & Firoozi, 2011), country level (Apergis, Payne, & Saunoris, 2012;Legrenzi & Milas, 2012;Saunoris & Payne, 2010) and economic or regional group level (Afonso & Rault, 2015;Gemmell, Kneller, & Sanz, 2013;Owoye & Onafowora, 2010). But the frequency of these kinds of studies is quite low in Asian economies, especially underdeveloped countries like Pakistan, where the deficit is pretty usual in the budgetary process and policymakers are still indecisive in defining such a mechanism which could help the country reduce budget deficit.…”

Section: Introductionmentioning

confidence: 99%

Asymmetric Relationship Between Government Revenues and Expenditures in a Developing Economy: Evidence from a Non-linear Model

Raza

Hassan

Sharif

2019

Global Business Review

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Understanding the revenue–expenditure nexus is the core essence of this research in the Pakistani context. This research examines the non-linear relationship between government revenues and government expenditures during 1972–2014. The recently developed non-linear co-integration technique has been used along with the symmetry test. The result shows that the revenues and expenditures have co-integration and provide the evidence in favour of fiscal synchronization hypothesis in the budgetary process. Moreover, the finding also reveals that the relationship between these two fiscal elements is asymmetric and negative changes in revenues and expenditures have a greater impact than the positive ones. Furthermore, another important aspect that was revealed during the study was that the negative shocks in the revenues will lead towards the drastically large increase in the expenditure.

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Section: Introductionmentioning

confidence: 99%

Asymmetric Relationship Between Government Revenues and Expenditures in a Developing Economy: Evidence from a Non-linear Model

Raza

Hassan

Sharif

2019

Global Business Review

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“…Overrunning budgets, or budget breaking, has been the subject of some attention in public administration scholarship, and its negative consequences include making planning more complicated and harming the credibility of policy decisions vis‐à‐vis the citizenry. Prior research suggests that triggers of budget breaking may be found in policy problems (e.g., that solutions to intractable problems are surprisingly expensive to implement), in institutional rules (e.g., access to carrying appropriations forward and to borrowing), in economic conditions (e.g., affluence or stress), and in the political domain (e.g., electoral cycles, political orientations, and coalitions) (Anessi‐Pessina & Sicilia, 2015; Benito et al, 2015; Blom‐Hansen, 2002; Serritzlew, 2005; Soguel & Ecabert, 2015). Overall, the results are mixed, and the triggers of fiscal easing are therefore not well understood.…”

Section: Analytical Frameworkmentioning

confidence: 99%

Fiscal easing in local governments facing potential merger: Visible in budgets or hidden in overruns?

Askim

Houlberg

Klausen

2021

Public Administration

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Mergers incentivize local governments to ease their fiscal policies before the merger is implemented. This incentive is powerful: it is known that local governments start easing fiscal policies even before they know for sure that a merger will occur and even if merging is what they want. Based on a study of Norwegian municipalities, this article shows that irrespective of whether local governments face certain or potential mergers, their fiscal easing is manifested primarily in budget overruns rather than candidly documented in budgets. Among local governments facing a potential merger, unwilling governments ease their fiscal policies more than willing ones do and to a larger extent apply a concealment strategy. | INTRODUCTIONThe structural reform of local government systems through voluntary or enforced mergers has been a recurring item on many countries' policy agendas for several decades (Baldersheim & Rose, 2010;Paddison, 2004;Sancton, 2000).Merging local governments has been propagated as a cost-saving measure, although empirical evidence is mixed (Blom-Hansen et al., 2016;Swianiewicz & Łukomska, 2019;Tavares & Rodrigues, 2015). A mechanism that counteracts cost-saving is easing of local fiscal policies just before a merger is implemented, a behavior closely related to a phenomenon known as freeriding (Hinnerich, 2009). A merger creates a common-pool problem-"a future common pool which the amalgamating entities can try to exploit prior to amalgamation" (Hansen, 2019; see also Ostrom, 1990). The prospect of a merger incentivizes local governments to increase spending on local welfare goods and accrue localized benefits while they still have the authority to do so. Premerger fiscal easing entails last-minute

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“… 14 See Soguel and Ecabert ( 2015 ) for more information pertaining additional budget appropriation, spending drift and rebudgeting. …”

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confidence: 99%

How does depreciations management affect subsequent fiscal performance? The case of the Swiss cantons

Clémenceau¹,

Soguel

2018

Swiss J Economics Statistics

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Creative accounting allows governments and, more particularly, finance ministers to somehow manage financial reports to achieve specific and possibly self-interested goals. It is usually used to hide deficits. It sometimes also helps to present financial performance as being more worrisome than it actually is. In that case, ministers press more than needed for lower expenses and a higher tax burden. This pressure is expected to tame deficits or increase surpluses over time. Using panel data relative to the 26 Swiss cantons over the period 1980–2013, we estimate econometrically how a political finessing technique like ‘depreciations management’ affects subsequent government expenses and revenues and thus subsequent financial performance.

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Do Nasty and Pleasant Surprises Regarding Tax Revenue Explain Spending Drifts? The Case of the Swiss Cantons

Cited by 4 publications

References 23 publications

Asymmetric Relationship Between Government Revenues and Expenditures in a Developing Economy: Evidence from a Non-linear Model

Asymmetric Relationship Between Government Revenues and Expenditures in a Developing Economy: Evidence from a Non-linear Model

Fiscal easing in local governments facing potential merger: Visible in budgets or hidden in overruns?

How does depreciations management affect subsequent fiscal performance? The case of the Swiss cantons

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