Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 250

Search results for: expenditure

250 Exploring the Relationship between Building Construction Activity and Road-Related Expenditure in Victoria

Authors: Md. Aftabuzzaman, Md. Kamruzzaman

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Road-related expenditure and building construction activity are two significant drivers of the Victorian economy. This paper investigates the relationship between building construction activity and road-related expenditure. Data for construction activities were collected from Victorian Building Authority, and road-related expenditure data were explored from the Bureau of Infrastructure and Transport Research Economics. The trend between these two sectors was compared. The analysis found a strong relationship between road-related expenditure and the volume of construction activity, i.e., the more the construction activities, the greater the requirement of road-related expenditure, or vice-versa. The road-related expenditure has a two-year lag period, suggesting that the road sector requires two years to respond to the growth in the building sector.

Keywords: building construction activity, infrastructure, road expenditure, Victorian Building Authority

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249 Effects of Age and Energy Expenditure on Obesity Among Adults in Abeokuta, Nigeria

Authors: Adeniyi Samuel Adekoya

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The study assessed the independent effects of age and energy expenditure on the risks of obesity among adults (20-64 years). A cross-sectional study with changes in age, changes in work and leisure-time, and physical activities information played roles, with cut-off for energy expenditure and BMI in rural and urban localities. Physical activity information determined the energy expenditure, while the BMI determined the risk of obesity among the subjects. Statistically, age has a strong and direct association with obesity in both rural and urban settings, while energy expenditure was inverse in its association. Findings from the this study showed that in developing societies, age tends to be a risk factor for obesity, whereas energy expenditure is to be protective. Level of education and economic development are also relevant modifiers of the influences exerted by these variables.

Keywords: age, energy expenditure, BMI, rural/urban

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248 Tax Expenditures: A Review and Analysis

Authors: Khalid Javed

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This study examines a feature of the budget process called the tax expenditure budget. The tax expenditure concept relies heavily on a normative notion that shielding certain. Taxpayer income from taxation deprives government of its rightful revenues. This view is inconsistent with the proposition that income belongs to the taxpayers and that tax liability is determined through the democratic process, not through arbitrary, bureaucratic Assumptions. Furthermore, the methodology of the tax expenditure budget is problematic as its expansive tax base treats the multiple taxation of saving as the norm. By using an expansive view of income as the underlying assumption of the tax expenditure concept, this viewpoint institutionalizes a particular bias into the decision-making process.

Keywords: revenue, expenditure, tax budget, propostion

Procedia PDF Downloads 192
247 Effect of Fiscal Policy on Growth in India

Authors: Parma Chakravartti

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The impact of government spending and taxation on economic growth has remained a central issue of fiscal policy analysis. There is a wide range of opinions over the strength of fiscal policy’s effect on macroeconomic variables. It can be argued that the impact of fiscal policy depends on the structure and economic condition of the economy. This study makes an attempt to examine the effect of fiscal policy shocks on growth in India using the structural vector autoregressive model (SVAR), considering data from 1950 to 2019. The study finds that government spending is an important instrument of growth in India, where the share of revenue expenditure to capital expenditure plays a key role. The optimum composition of total expenditure is important for growth and it is not necessarily true that capital expenditure multiplier is more than revenue expenditure multiplier. The study also finds that the impact of public economic activities on private economic activities for both consumption expenditure and gross capital formation of government crowds in private consumption expenditure and private gross capital formation, respectively, thus indicating that government expenditure complements private expenditure in India.

Keywords: government spending, fiscal policy, multiplier, growth

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246 Fiscal Size and Composition Effects on Growth: Empirical Evidence from Asian Economies

Authors: Jeeban Amgain

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This paper investigates the impact of the size and composition of government expenditure and tax on GDP per capita growth in 36 Asian economies over the period of 1991-2012. The research employs the technique of panel regression; Fixed Effects and Generalized Method of Moments (GMM) as well as other statistical and descriptive approaches. The finding concludes that the size of government expenditure and tax revenue are generally low in this region. GDP per capita growth is strongly negative in response to Government expenditure, however, no significant relationship can be measured in case of size of taxation although it is positively correlated with economic growth. Panel regression of decomposed fiscal components also shows that the pattern of allocation of expenditure and taxation really matters on growth. Taxes on international trade and property have a significant positive impact on growth. In contrast, a major portion of expenditure, i.e. expenditure on general public services, health and education are found to have significant negative impact on growth, implying that government expenditures are not being productive in the Asian region for some reasons. Comparatively smaller and efficient government size would enhance the growth.

Keywords: government expenditure, tax, GDP per capita growth, composition

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245 Economics of Household Expenditure Pattern on Animal Products in Bauchi Metropolis, Bauchi State, Nigeria

Authors: B. Hamidu, A. Abdulhamid, S. Mohammed, S. Idi

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This study examined the household expenditure pattern on animal products in Bauchi metropolis. A cross-sectional data were collected from 157 households using systematic sampling technique. The data were analyzed using descriptive statistics, correlation and regression models. The results reveal that the mean age, mean household size, mean monthly income and mean total expenditure on animal products were found to be 39 years, 7 persons, N28,749 and N1,740 respectively. It was also found that household monthly income, number of children and educational level of the household heads (P<0.01) significantly influence the level of household expenditure on animal products. Similarly, income was found to be the most important factor determining the proportion of total expenditure on animal products (20.91%). Income elasticity was found to be 0.66 indicating that for every 1% increase in income, expenditure on animal products would increase by 0.66%. Furthermore, beef was found to be the most preferred (54.83%) and most regularly consumed (61.84%) animal products. However, it was discovered that the major constraints affecting the consumption of animal products were low-income level of the households (29.85%), high cost of animal products (15.82%) and increase in prices of necessities (15.82%). Therefore to improve household expenditure on animal products per capita real income of the households should be improved through creation of employment opportunities. Also stabilization of market prices of animal products and other foods items of necessities through increased production are recommended.

Keywords: animal products, economics, expenditure, households

Procedia PDF Downloads 162
244 The Impact of Government Expenditure on Economic Growth: A Study of Asian Countries

Authors: K. P. K. S. Lahirushan, W. G. V. Gunasekara

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Main purpose of this study is to identifying the impact of government expenditure on economic growth in Asian Countries. Consequently, Fist, objective is to analyze whether government expenditure causes economic growth in Asian countries vice versa and then scrutinizing long-run equilibrium relationship exists between them. The study completely based on secondary data. The methodology being quantitative that includes econometrical techniques of cointegration, panel fixed effects model and granger causality in the context of panel data of Asian countries; Singapore, Malaysia, Thailand, South Korea, Japan, China, Sri Lanka, India and Bhutan with 44 observations in each country, totaling to 396 observations from 1970 to 2013. The model used is the random effects panel OLS model. As with the above methodology, the study found the fascinating outcome. At first, empirical findings exhibit a momentous positive impact of government expenditure on Gross Domestic Production in Asian region. Secondly, government expenditure and economic growth indicate a long-run relationship in Asian countries. In conclusion, there is a unidirectional causality from economic growth to government expenditure and government expenditure to economic growth in Asian countries. Hence the study is validated that it is in line with the Keynesian theory and Wagner’s law as well. Consequently, it can be concluded that role of government would play a vital role in economic growth of Asian Countries .However; if government expenditure did not figure out with the economy’s needs it might be considerably inspiration the economy in a negative way so that society bears the costs.

Keywords: Asian countries, government expenditure, Keynesian theory, Wagner’s theory, random effects panel ols model

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243 Health Expenditure and Household Age Composition in India: Consequences for Health System Development

Authors: Milind Bharambe, Chander Shekhar

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India is a vast country with its 1.21 billion population at the dawn of new decade, which accounts for one sixth of the global human capital in the world today. It is well known that health expenditure in India is dominated by private spending. This is an unfortunate consequence of India’s development because of large positive externality associated with health spending, which make health a merit good. This paper has used data from NSSO and Indian Government’s spending on health as reported by Ministry of Health and Family Welfare. Understanding of the dynamism of age-structure of the population would greatly optimize the expenditure on health care services. A country with good public health indicators is bound to possess good human capital which is an asset to the economic growth and indicator of development status of country. The paper tries to present the linkages between the health expenditure incurred by different states at various levels of demographic transition levels and the efficiency in utilization of health expenditure. It also looks into the way in which allocative efficiency health services can be improved. Paper tries to explore the per capita spending on health and how the demographic transition taking place in different states of India affect the required quantity and quality of health services.

Keywords: age structure, demographic transition, health expenditure, morbidity

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242 The Role of the State Budget: An Evaluation of Public Expenditures and Taxes in Turkey

Authors: Erdal Eroğlu, Özhan Çetinkaya

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The purpose of this paper is to show how state plays a regulatory role in the relations of distribution by analyzing tax and expenditure in Turkey. This paper has two main arguments. First, state intervenes in economic and social life via budget policies and steers the relations of distribution within the scope of the reproduction of the capital accumulation and legitimacy. Secondly, a great amount of public expenditure benefits capital owners while state gains its tax income mainly from low and middle income groups.

Keywords: distribution, public expenditure, state budget, taxes

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241 Towards Islamic Sustainable Consumption: Micro Evidence from Muslim Household in Malaysia

Authors: Noorhaslinda Kulub Abd. Rashid, Zuraini Anang, Bayu Taufiq Possumah, Suriyani Muhamad, Fauziah Abu Hasan, Hairunnizam Wahid

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Reality of Malaysian lives today, especially the households, are not exempted from using a variety of good products and services that are particularly materialistic. In fact, the pace and sophistication of the technology is seen as a major catalyst to the pattern of community life. In facing the challenges of the current economy, the key role to be played by household is managing the pattern of expenditure, income and loan debts regularly and blessed by Allah. Unfortunately, the world today is witnessing the average household could owe solely to meet their needs with existing spending limits. This study aims to measure the ‘Religious Index of Household Expenditure’ (IKM) and analyze how far the religious influence to the pattern of household expenditure based on the 441 Muslim households. The results showed only a 5-item spending, food, housing, transportation, education, and recreation and entertainment that has a significant relationship with IKM. Therefore, Islamic consumer education is a must to establish sustainable consumptions in order to speed up the internalization of sustainable lifestyle among Malaysians.

Keywords: ‘Religious Index of Household Expenditure’ (IKM), income, sustainable consumptions, household expenditure

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240 Catastrophic Spending on Health: A Determinant of Access to Health Care by Migrant Slum Population

Authors: Saira Mehnaz, Ali Jafar Abedi, Shazia Farooq Fazli, Sakeena Mushfiq, Zulfia Khan, M. Athar Ansari

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Introduction: Public health spending is a necessity in an underdeveloped country like India. The people are already suffering from poverty and that clubbed with out of pocket expenditure leads them to a very catastrophic situation, reducing the overall access to healthcare. Objectives: This study was designed to determine the usual source of medical care opted, the illness pattern, the expenditure incurred on illness and its source of procurement by the study population. It also intended to assess this expenditure as a determinant of access to health care. Methodology: Cities like Aligarh, which are classified as B grade cities in India are thought to be ripe sites for getting livelihood and hence are almost half filled with migrants living in urban slums. A cross sectional study was done to study the newer slum pockets. 3409 households with a population of 16,978 were studied with the help of pretested questionnaire; SPSS 20 was used for statistical analysis. Results and Conclusions: In our study, we found that almost all the households suffered from catastrophic health expenditure. The study population, which was already vulnerable owing to their low socio-economic and migrant status was further being forced with into poverty and indebtedness on account of expenditure on illness. This lead to a significant decrease in access to health. National health financing systems should be designed to protect households from financial catastrophe, by reducing out-of-pocket spending.

Keywords: access to healthcare, catastrophic health expenditure, new urban slums, out of pocket expenditure

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239 Investigation of the Relationship between Government Expenditure and Country’s Economic Development in the Context of Sustainable Development

Authors: Lina Sinevičienė

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Arising problems of countries’ public finances, social and demographic changes motivate scientific and policy debates on public spending size, structure and efficiency in order to meet the changing needs of society and business. The concept of sustainable development poses new challenges for scientists and policy-makers in the field of public finance. This paper focuses on the investigation of the relationship between government expenditure and country’s economic development in the context of sustainable development. Empirical analysis focuses on the data of the European Union (except Croatia and Luxemburg) countries. The study covers 2003 – 2012 years, using annual cross-sectional data. Summarizing the research results, it can be stated that governments should pay more attention to the needs that ensure sustainable development in the long-run when formulating public expenditure policy, particularly in the field of environment protection.

Keywords: economic development, economic growth, government expenditure, sustainable development

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238 How to Evaluate Resting and Walking Energy Expenditures of Individuals with Different Body Mass Index

Authors: Zeynep Altinkaya, Ugur Dal, Figen Dag, Dilan D. Koyuncu, Merve Turkegun

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Obesity is defined as abnormal fat-tissue accumulation as a result of imbalance between energy intake and expenditure. Since 50-70% daily energy expenditure of sedantary individuals is consumed as resting energy expenditure (REE), it takes an important place in the evaluation of new methods for obesity treatment. Also, it is known that walking is a prevalent activity in the prevention of obesity. The primary purpose of this study is to evaluate and compare the resting and walking energy expenditures of individuals with different body mass index (BMI). In this research, 4 groups are formed as underweight (BMI < 18,5 kg/m2), normal (BMI=18,5-24,9 kg/m2), overweight (BMI=25-29,9 kg/m2), and obese (BMI ≥ 30) according to BMI of individuals. 64 healthy young adults (8 man and 8 woman per group, age 18-30 years) with no known gait disabilities were recruited in this study. The body compositions of all participants were measured via bioelectric empedance analysis method. The energy expenditure of individuals was measured with indirect calorimeter method as inspired and expired gas samples are collected breath-by-breath through a special facemask. The preferred walking speed (PWS) of each subject was determined by using infrared sensors placed in 2nd and 12th meters of 14 m walkway. The REE was measured for 15 min while subjects were lying, and walking energy expenditure was measured during subjects walk in their PWS on treadmill. The gross REE was significantly higher in obese subjects compared to underweight and normal subjects (p < 0,0001). When REE was normalized to body weight, it was higher in underweight and normal groups than overweight and obese groups (p < 0,0001). However, when REE was normalized to fat-free mass, it did not differ significantly between groups. The gross walking energy expenditure in PWS was higher in obese and overweight groups than underweight and normal groups (p < 0,0001). The regression coefficient between gross walking energy expenditure and body weight was significiant among normal and obese groups (p < 0.05). It accounted for 70,5% of gross walking energy expenditure in normal group, and 57,9% of gross walking energy expenditure in obese group. It is known that obese individuals have more metabolically inactive fat-tissue compared to other groups. While excess fat-tissue increases total body weight, it does not contribute much to REE. Therefore, REE results normalized to body weight could lead to misleading results. In order to eliminate fat-mass effect on REE of obese individuals, REE normalized to fat-free mass should be used to acquire more accurate results. On the other hand, the fat-mass increasement raises energy requirement while walking to retain the body balance. Thus, gross walking energy expenditure should be taken into consideration for the evaluating energy expenditure of walking.

Keywords: body composition, obesity, resting energy expenditure, walking energy expenditure

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237 Understanding the Influence of Cross-National Distances on Tourist Expenditure

Authors: Wei-Ting Hung

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Inbound tourist expenditure might not only have influenced by individual tourist characteristics but may also be affected by nationality characteristics. The cross national distance effects on tourist consumption behavior should be incorporated in the analytical framework. Additionally, the often used factor analysis, cluster analysis and regression analysis overlook the hierarchical tourist consumption data structure and may lead to misleading results. The objectives of the present study were twofold. First, we propose a multilevel model that takes individual and cross-national differences into account under a hierarchical framework. Second, we further sought to determine the types of cross-national differences affecting tourist expenditure. Thus, this study incorporates the individual tourist effects and cross national distance effects simultaneously, uses the data of 2010 Annual Survey Report on Visitors’ Expenditure and Trends in Taiwan to investigate the determinants of inbound tourist expenditure. Multilevel analysis was used to investigate the influence of individual tourist effects and cross national distance effects on inbound tourist expenditure. The empirical results show that cross national distance plays a crucial role in tourist consumption behavior. Our findings also indicate age and income have positive influence on tourism expenditure., whereas education and gender do not have significant impact. Regarding macro-level factors, geographic and cultural differences exhibited significant positive relationships on tourism expenditure, while economic differences did not. Based on the above empirical results, it is suggested that tour operators should take tourists’ individual attributes, particularly their income and age, into consideration when arranging tours. In addition, nationality holds sway over tourists’ consumption behavior, of which geographic and cultural differences are the two major factors at play. The empirical results of this study serve as practical suggestions for tourism marketing strategies and policy implications for government policies.

Keywords: cross national distance, inbound tourist, multilevel analysis, tourist expenditure

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236 The Effect of per Pupil Expenditure on Student Academic Achievement: A Meta-Analysis of Correlation Research

Authors: Ting Shen

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Whether resource matters to school has been a topic of intense debate since 1960s. Educational researchers and policy makers have been particularly interested in knowing the return or payoff of Per-Pupil Expenditure (PPE) on improving students’ achievement. However, the evidence on the effect of PPE has been mixed and the size of the effect is also unknown. With regard to the methods, it is well-known that meta-analysis study is superior to individual study and it is also preferred to vote counting method in terms of scientifically weighting the evidence by the sample size. This meta-analysis study aims to provide a synthesized evidence on the correlation between PPE and student academic achievement using recent study data from 1990s to 2010s. Meta-analytical approach of fixed- and random-effects models will be utilized in addition to a meta regression with predictors of year, location, region and school type. A preliminary result indicates that by and large there is no statistically significant relationship between per pupil expenditure and student achievement, but location seems to have a mediating effect.

Keywords: per pupil expenditure, student academic achievement, multilevel model, meta-analysis

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235 Cost of Governance in Nigeria: In Whose Interest

Authors: Francis O. Iyoha, Daniel E. Gberevbie, Charles T. Iruonagbe, Matthew E. Egharevba

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Cost of governance in Nigeria has become a challenge to development and concern to practitioners and scholars alike in the field of business and social science research. It has been observed that it takes 70 percent of the nation’s revenue to maintain less than 20 percent of the Nigerian population that are public servants. Furthermore, it has been observed that on a consistent yearly basis, the recurrent expenditure of government from the national budget keeps rising, while capital expenditure meant for development keeps falling. The implication is that development is stagnated in the country. For instance, in the 2010 national budget of NGN4.60tn or USD28.75b, only NGN1.80tn or USD11.15b was set aside for capital expenditure. Also, in the 2013 national budget of NGN4.92tn or USD30.75b, only NGN1.50tn or USD9.38b was set aside for capital expenditure. Therefore, with the analysis of secondary data, this study examined the reasons for the high cost of governance in Nigeria. It observed that the high cost of governance in the country is in the interest of the ruling class, arising from their unethical behaviour – corrupt practices and the poor management of public resources. As a result, the study recommends the need to intensify the war against corruption and mismanagement of public resources by government officials as possible solution to overcome the high cost of governance in Nigeria. This could be achieved by strengthening the constitutional powers of the various anti-corruption agencies in the area of arrest, investigation and prosecution of offenders without the interference of the executive arm of government either at the local, state or federal level.

Keywords: cost of governance, capital expenditure, recurrent expenditure, unethical behavior, Nigeria

Procedia PDF Downloads 252
234 The Effect of Health Subsidies on Poverty Level in Indonesia

Authors: Ikhsan Fahmi, Hasti Amanda Ilmi Putri

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The Covid-19 pandemic caused Large Scale Social Restrictions which have an impact on aspects of the nation’s life, such as the level of poverty. One of the causes of poverty is the lack level of public health. The calculation of poverty is seen as an inability from an economic side of basic food and non-food needs, which is measured from the expenditure side, one of which is health expenditure. The purpose of this study is to analyse the effect of health subsidies to the community on the level of poverty in 2020 in Indonesia. The main source used is the National Socio-Economic Survey of Consumption Expenditure and Cor, March 2020. From the result of the analysis, it was found that the percentage of poor people increased from the previous 9.78 percent to 9,92 percent, or there were 391,000 people who were previously not poor people who became poor when the health subsidies were revoked. There is a pattern of distribution of provinces in Indonesia between the average cost of health subsidies per capita per month if the government does not provide health subsidies and increasing of the percentage of poor people. This indicates that government intervention related to health subsidised is important in terms of poverty alleviation in Indonesia.

Keywords: poverty, health, subsidy, expenditure

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233 Factors Influencing Household Expenditure Patterns on Cereal Grains in Nasarawa State, Nigeria

Authors: E. A. Ojoko, G. B. Umbugadu

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This study aims at describing the expenditure pattern of households on millet, maize and sorghum across income groups in Nasarawa State. A multi-stage sampling technique was used to select a sample size of 316 respondents for the study. The Almost Ideal Demand System (AIDS) model was adopted in this study. Results from the study shows that the average household size was five persons with dependency ratio of 52 %, which plays an important role on the household’s expenditure pattern by increasing the household budget share. On the average 82 % were male headed households with an average age of 49 years and 13 years of formal education. Results on expenditure share show that maize has the highest expenditure share of 38 % across the three income groups and that most of the price effects are significantly different from zero at 5 % significant level. This shows that the low price of maize increased its demand as compared to other cereals. Household size and age of household members are major factors affecting the demand for cereals in the study. This agrees with the fact that increased household population (size) will bring about increase consumption. The results on factors influencing preferences for cereal grains reveals that cooking quality and appearance (65.7 %) were the most important factors affecting the demand for maize in the study area. This study recommends that cereal crop production should be prioritized in government policies and farming activities that help to boost food security and alleviate poverty should be subsidized.

Keywords: expenditure pattern, AIDS model, budget share, price cereal grains and consumption

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232 The Associations between Self-Determined Motivation and Physical Activity in Patients with Coronary Heart Disease

Authors: I. Hua Chu, Hsiang-Chi Yu, Hsuan Su

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Purpose: To examine the associations between self-determined motivation and physical activity in patients with coronary heart disease (CHD) in a longitudinal study. Methods: Patients with CHD were recruited for this study. Their motivations for exercise were measured by the Behavioral Regulation in Exercise Questionnaire-2 (BREQ-2). Physical activity was assessed using the 7-day physical activity recall questionnaire. Duration and energy expenditure of moderate to vigorous physical activity (MVPA) were used in data analysis. All outcome measures were assessed at baseline and 12 months follow up. Data were analyzed using Pearson correlation analysis and regression analysis. Results: The results of the 45 participants (mean age 60.24 yr; 90.2% male) revealed that there were significant negative correlations between amotivation at baseline and duration (r=-.295, p=.049) and energy expenditure (r=-.300, p=.045) of MVPA at 12 months. In contrast, there were significant positive correlations between calculated relative autonomy index (RAI) at baseline and duration (r=.377, p=.011) and energy expenditure (r=.382, p=.010) of MVPA at 12 months. There was no significant correlation between other subscales of the BREQ-2 and duration or energy expenditure of MVPA. Regression analyses revealed that RAI was a significant predictor of duration (p=.011) and energy expenditure (p=.010) of MVPA at 12 months follow-up. Conclusions: These results suggest that the relative degree of self-determined motivation could predict long-term MVPA behaviors in CHD patients. Physical activity interventions are recommended to target enhancing one’s identified and intrinsic motivation to increase the likelihood of physical activity participation in this population.

Keywords: self-determined motivation, physical activity, coronary heart disease, relative autonomy index (RAI)

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231 An Appraisal of Revenue Collection in Local Government: A Case Study of Boripe Local Government Iragbiji Osun State

Authors: Olanike O. Akinwale, Isiaka S. Adedoyin

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Revenue is a fund realized by the government to meet both current and capital expenditures. The study found out the various ways through which local governments in Nigeria generate revenue or obtain funds and determined whether the people of Boripe local government are paying tax as at when due and also evaluated how the revenue generated is being used by the local government. During the course of this study, research questionnaires were drafted and distributed to respondents in the local government secretariat who supplied the information needed to carry out the research work. Data were collected by using simple random sampling technique where members of the population have been given equal chance of being picked as a member of the sample. Data were analysed using chart table; the chart analyzed the figure of the past two years revenue and expenditure of the local government. It was deduced from the result that revenue generated but this was not up to what one expected for this local government to finance the projected expenditure when the size was considered, its location as well as its natural endowment of this local government. This was due to lack of cooperation of the people and staffs within the local government in the local government jurisdiction as well as fraudulent activities the revenue collectors engaged in. Revenue generation is a fuel for development in any organization whether public or private. The ability of revenue drive of Boripe was not strong enough since the targeted revenue from taxation was not enough to meet the projected expenditure for a particular year as in 2016, the difference was carried forward to the next year.

Keywords: appraisal, expenditure, local government, questionnaire, revenue

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230 The Capital Expenditure Reputation from Investor Perspective: A Signal of Better Future Performance

Authors: Juniarti, Agus Arianto Toly

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This study aims to examine the effect of capital expenditure on the investors’ responses. The respondents were companies with the best stock performance in each sector in 2017. The observation period is 2017 to 2019. Top 10 companies in each sector with the best stock performance in companies listed on the Indonesia Stock Exchange were selected. The main variables are a growth signal which is proxied by growth in capital spending and capital expenditure, and risk and investor response, which is proxied by CAR. Financial performance as measured by ROA is a control variable in this study. The results showed that the signal of growth as measured by capital expenditures responded positively by the market, the risk moderates this influence, companies with high risk will be responded negatively by investors and vice versa. This finding corrects previous findings that only looked at the signal aspect of growth, without linking it to risk. In addition, these findings reinforce the argument that investors buy the future of the company, not a momentary financial performance. This can be seen from the absence of ROA influence on investor response. This study found that companies need to manage risk appropriately, because the risk aspect of the company is a crucial factor for investors. High risks will eliminate the benefits of strategic decisions in this case in the form of capital expenditures.

Keywords: capital expenditure, growth signals, investor response, risk

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229 Problems of ICT Adoption in Nigerian Small and Medium Scale Enterprises

Authors: Ajayi Adeola

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The study examined the sources of revenue in Osun State. It determined the impact of revenue consultants on the internally generated revenue of Osun State Government, all with a view to surveying the expenditure pattern of the state. In the course of carrying out the study, data were collected primarily through interview method. Four principal officers in the financial sector were interviewed. However, secondary sources of data were collected from Osun State of Nigeria audited reports and financial statements for the year ended 31st December, 1997 to 2006. The data generated were analyzed using percentages and pie-chart for illustrations. The findings of the study revealed that the sources of revenue for Osun State Government included internally generated revenue (IGR), statutory allocation, value added tax (VAT) and capital projects. It also discovered that Statutory Allocation was the dominant sources of government revenue during the period of study. It accounted for 63.69% while IGR was 19.7%, value added tax (VAT) 8.07% and capital Receipts 8.48%. The study also discovered that the recurrent expenditure overshot the capital expenditure during the period of study on ratio 7:3 respectively while the state recorded surplus budget in seven times and deficit budgets in 2003 and 2004. The study concluded that the Osun State government was over dependent on external sources to finance recurrent and capital expenditure during the period of study.

Keywords: information communication technology, ICT adoption, ICT solution, small and medium scale enterprises

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228 The Inequality Effects of Natural Disasters: Evidence from Thailand

Authors: Annop Jaewisorn

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This study explores the relationship between natural disasters and inequalities -both income and expenditure inequality- at a micro-level of Thailand as the first study of this nature for this country. The analysis uses a unique panel and remote-sensing dataset constructed for the purpose of this research. It contains provincial inequality measures and other economic and social indicators based on the Thailand Household Survey during the period between 1992 and 2019. Meanwhile, the data on natural disasters, which are remote-sensing data, are received from several official geophysical or meteorological databases. Employing a panel fixed effects, the results show that natural disasters significantly reduce household income and expenditure inequality as measured by the Gini index, implying that rich people in Thailand bear a higher cost of natural disasters when compared to poor people. The effect on income inequality is mainly driven by droughts, while the effect on expenditure inequality is mainly driven by flood events. The results are robust across heterogeneity of the samples, lagged effects, outliers, and an alternative inequality measure.

Keywords: inequality, natural disasters, remote-sensing data, Thailand

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227 The Critical Relevance of Credit and Debt Data in Household Food Security Analysis: The Risks of Ineffective Response Actions

Authors: Siddharth Krishnaswamy

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Problem Statement: Currently, when analyzing household food security, the most commonly studied food access indicators are household income and expenditure. Larger studies do take into account other indices such as credit and employment. But these are baselines studies and by definition are conducted infrequently. Food security analysis for access is usually dedicated to analyzing income and expenditure indicators. And both these indicators are notoriously inconsistent. Yet this data can very often end up being the basis on which household food access is calculated; and by extension, be used for decision making. Objectives: This paper argues that along with income and expenditure, credit and debit information should be collected so that an accurate analysis of household food security (and in particular) food access can be determined. The lack of collection and analysis of this information routinely means that there is often a “masking” of the actual situation; a household’s food access and food availability patterns may be adequate mainly as a result of borrowing and may even be due to a long- term dependency (a debt cycle). In other words, such a household is, in reality, worse off than it appears a factor masked by its performance on basic access indicators. Procedures/methodologies/approaches: Existing food security data sets collected in 2005 in Azerbaijan, 2010 across Myanmar and 2014-15 across Uganda were used to support the theory that analyzing income and expenditure of a HHs and analyzing the same in addition to data on credit & borrowing patterns will result in an entirely different scenario of food access of the household. Furthermore, the data analyzed depicts food consumption patterns across groups of households and then relates this to the extent of dependency on credit, i.e. households borrowing money in order to meet food needs. Finally, response options that were based on analyzing only income and expenditure; and response options based on income, expenditure, credit, and borrowing – from the same geographical area of operation are studied and discussed. Results: The purpose of this work was to see if existing methods of household food security analysis could be improved. It is hoped that food security analysts will collect household level information on credit and debit and analyze them against income, expenditure and consumption patterns. This will help determine if a household’s food access and availability are dependent on unsustainable strategies such as borrowing money for food or undertaking sustained debts. Conclusions: The results clearly show the amount of relevant information that is missing in Food Access analysis if debit and borrowing of the household is not analyzed along with the typical Food Access indicators that are usually analyzed. And the serious repercussions this has on Programmatic response and interventions.

Keywords: analysis, food security indicators, response, resilience analysis

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226 The Effectiveness of National Fiscal Rules in the Asia-Pacific Countries

Authors: Chiung-Ju Huang, Yuan-Hong Ho

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This study utilizes the International Monetary Fund (IMF) Fiscal Rules Dataset focusing on four specific fiscal rules such as expenditure rule, revenue rule, budget balance rule, and debt rule and five main characteristics of each fiscal rule those are monitoring, enforcement, coverage, legal basis, and escape clause to construct the Fiscal Rule Index for nine countries in the Asia-Pacific region from 1996 to 2015. After constructing the fiscal rule index for each country, we utilize the Panel Generalized Method of Moments (Panel GMM) by using the constructed fiscal rule index to examine the effectiveness of fiscal rules in reducing procyclicality. Empirical results show that national fiscal rules have a significantly negative impact on procyclicality of government expenditure. Additionally, stricter fiscal rules combined with high government effectiveness are effective in reducing procyclicality of government expenditure. Results of this study indicate that for nine Asia-Pacific countries, policymakers’ use of fiscal rules and government effectiveness to reducing procyclicality of fiscal policy are effective.

Keywords: counter-cyclical policy, fiscal rules, government efficiency, procyclical policy

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225 Government Size and Economic Growth: Testing the Non-Linear Hypothesis for Nigeria

Authors: R. Santos Alimi

Abstract:

Using time-series techniques, this study empirically tested the validity of existing theory which stipulates there is a nonlinear relationship between government size and economic growth; such that government spending is growth-enhancing at low levels but growth-retarding at high levels, with the optimal size occurring somewhere in between. This study employed three estimation equations. First, for the size of government, two measures are considered as follows: (i) share of total expenditures to gross domestic product, (ii) share of recurrent expenditures to gross domestic product. Second, the study adopted real GDP (without government expenditure component), as a variant measure of economic growth other than the real total GDP, in estimating the optimal level of government expenditure. The study is based on annual Nigeria country-level data for the period 1970 to 2012. Estimation results show that the inverted U-shaped curve exists for the two measures of government size and the estimated optimum shares are 19.81% and 10.98%, respectively. Finally, with the adoption of real GDP (without government expenditure component), the optimum government size was found to be 12.58% of GDP. Our analysis shows that the actual share of government spending on average (2000 - 2012) is about 13.4%.This study adds to the literature confirming that the optimal government size exists not only for developed economies but also for developing economy like Nigeria. Thus, a public intervention threshold level that fosters economic growth is a reality; beyond this point economic growth should be left in the hands of the private sector. This finding has a significant implication for the appraisal of government spending and budgetary policy design.

Keywords: public expenditure, economic growth, optimum level, fully modified OLS

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224 Optimization of Machine Learning Regression Results: An Application on Health Expenditures

Authors: Songul Cinaroglu

Abstract:

Machine learning regression methods are recommended as an alternative to classical regression methods in the existence of variables which are difficult to model. Data for health expenditure is typically non-normal and have a heavily skewed distribution. This study aims to compare machine learning regression methods by hyperparameter tuning to predict health expenditure per capita. A multiple regression model was conducted and performance results of Lasso Regression, Random Forest Regression and Support Vector Machine Regression recorded when different hyperparameters are assigned. Lambda (λ) value for Lasso Regression, number of trees for Random Forest Regression, epsilon (ε) value for Support Vector Regression was determined as hyperparameters. Study results performed by using 'k' fold cross validation changed from 5 to 50, indicate the difference between machine learning regression results in terms of R², RMSE and MAE values that are statistically significant (p < 0.001). Study results reveal that Random Forest Regression (R² ˃ 0.7500, RMSE ≤ 0.6000 ve MAE ≤ 0.4000) outperforms other machine learning regression methods. It is highly advisable to use machine learning regression methods for modelling health expenditures.

Keywords: machine learning, lasso regression, random forest regression, support vector regression, hyperparameter tuning, health expenditure

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223 Affordability and Expenditure Patterns towards Sustainable Consumption in Malaysia

Authors: Affordability, Expenditure Patterns towards Sustainable Consumption in Malaysia

Abstract:

Safe drinking water is needed for survival. Households have to pay the water bill monthly. However, lower income households are sometimes unable to afford the cost. This study examines water access and affordability among households in Malaysia and the determinants of water affordability using cross-sectional data and multiple regression. The paper expects that the bill for basic water consumption is inversely related to average income. This means that policy makers need to redesign the water tariff to improve the quality of life of lower income households.

Keywords: affordability, sustainable consumption, income, water tariff

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222 An Approach of High Scalable Production Capacity by Adaption of the Concept 'Everything as a Service'

Authors: Johannes Atug, Stefan Braunreuther, Gunther Reinhart

Abstract:

Volatile markets, as well as increasing global competition in manufacturing, lead to a high demand of flexible and agile production systems. These advanced production systems in turn conduct to high capital expenditure along with high investment risks. Developments in production regarding digitalization and cyber-physical systems result to a merger of informational- and operational technology. The approach of this paper is to benefit from this merger and present a framework of a production network with scalable production capacity and low capital expenditure by adaptation of the IT concept 'everything as a service' into the production environment.

Keywords: digital manufacturing system, everything as a service, reconfigurable production, value network

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221 Managing Risks of Civil War: Accounting Practices in Egyptian Households

Authors: Sumohon Matilal, Neveen Abdelrehim

Abstract:

The purpose of this study is to examine the way households manage the risks of civil war, using the calculative practices of accounting as a lens. As is the case with other social phenomena, accounting serves as a conduit for attributing values and rationales to crisis and in the process makes it visible and calculable. Our focus, in particular, is on the dialogue facilitated by the numerical logic of accounting between the householder and a crisis scenario, such as civil war. In other words, we seek to study how the risk of war is rationalized through household budgets, income and expenditure statements etc. and how such accounting constructs in turn shape attitudes toward earnings and spending in a wartime economy. The existing literature on war and accounting demonstrates how an accounting logic can have potentially destabilising consequences and how it is used to legitimise war. However, very few scholars have looked at the way accounting constructs are used to internalise the effects of war in an average household and the behavioural consequences that arise from such accounting. Relatedly, scholars studying household accounting have mostly focussed on the links between gender and hierarchy in relation to managing the financial affairs. Few have focused on the role of household accounts in a crisis scenario. This study intends to fill this gap. We draw upon Egypt, a country in the middle of civil war since 2011 for our purpose. We intend to carry out 15-20 semi-structured interviews with middle income households in Cairo that maintain some form of accounts to study the following issues: 1. How do people internalise the risks of civil war? What kind of accounting constructs do they use (this may take the form of simple budgets, income-expenditure notes/statements on a periodic basis, spreadsheets etc.) 2. How has civil war affected household expenditure? Are people spending more/less than before? 3. How has civil war affected household income? Are people finding it difficult/easy to survive on the pre-war income? 4. How is such accounting affecting household behaviour towards earnings and expenditure? Are families prioritising expenditure on necessities alone? Are they refraining from indulging in luxuries? Are family members doing two or three jobs to cope with difficult times? Are families increasingly turning toward borrowing? Is credit available? From whom?

Keywords: risk, accounting, war, crisis

Procedia PDF Downloads 134