{"title":"“Controlled Competition”: How Governments can induce Long-Term Competition","authors":"Yutaka Suzuki","doi":"10.1016/j.jge.2024.100111","DOIUrl":"10.1016/j.jge.2024.100111","url":null,"abstract":"<div><p>This paper builds a model of dynamic tournaments under incomplete contract situations to analyze how the government, as a national development strategy, induces incentives or forms of competition between multiple companies (between state-owned enterprises (SOEs), between private-owned enterprises (POEs), or between SOEs and POEs) in the long-run. This paper can be considered as a model analysis of “controlled competition” under “State Capitalism”, in which the government participates in the market as an active player, such as in China, Singapore, and in a broad sense, in Japanese Industrial Policy in the past. In addition to clarifying the incentive mechanism embedded in this model, we also examine the problems and areas for improvement from the perspective of incentive design. In particular, in the long-term competition between two heterogeneous companies, it would be a beneficial policy for the government if the feedback effect could be mitigated by handicapping the winner and favoring the loser, thereby restoring the competitive pressure that had decreased. At the same time, as excessive competition-inhibiting discriminatory prizes (“Cronyism”) greatly impede investment incentives for both companies, these can be viewed as a \"government failure\", and thus the institution should be redesigned to correct such obstacles, thereby maintaining appropriate competitive pressures.</p></div>","PeriodicalId":100785,"journal":{"name":"Journal of Government and Economics","volume":"14 ","pages":"Article 100111"},"PeriodicalIF":0.0,"publicationDate":"2024-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2667319324000156/pdfft?md5=d824e9c534f4278d7a6b30a6be5fe599&pid=1-s2.0-S2667319324000156-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141978069","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The rise of the administrative state, competition in state capitalism, political manipulation of data, and the Bank of England's role in funding the Seven Years' War","authors":"Zhangkai Huang, David Daokui Li","doi":"10.1016/j.jge.2024.100113","DOIUrl":"10.1016/j.jge.2024.100113","url":null,"abstract":"","PeriodicalId":100785,"journal":{"name":"Journal of Government and Economics","volume":"14 ","pages":"Article 100113"},"PeriodicalIF":0.0,"publicationDate":"2024-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S266731932400017X/pdfft?md5=689b26faa7666e1a5e04e3c9c092e256&pid=1-s2.0-S266731932400017X-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141951791","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Political business cycle and macro-fiscal forecast errors in sub-saharan Africa","authors":"A.S. Alade , A․A Kilishi","doi":"10.1016/j.jge.2024.100112","DOIUrl":"10.1016/j.jge.2024.100112","url":null,"abstract":"","PeriodicalId":100785,"journal":{"name":"Journal of Government and Economics","volume":"14 ","pages":"Article 100112"},"PeriodicalIF":0.0,"publicationDate":"2024-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2667319324000168/pdfft?md5=b31cffcbd45f025ff92bc046b7495e10&pid=1-s2.0-S2667319324000168-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141848029","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pedro Jorge Holanda Figueiredo Alves , Jevuks Matheus Araujo
{"title":"The effects of intergovernmental transfers on the local fiscal incentives of Brazilian municipalities","authors":"Pedro Jorge Holanda Figueiredo Alves , Jevuks Matheus Araujo","doi":"10.1016/j.jge.2024.100104","DOIUrl":"10.1016/j.jge.2024.100104","url":null,"abstract":"<div><p>The objective of this work is to analyze the impact of fiscal decentralization on the behavior of Brazilian municipal policymakers. This work uses the first three cutoffs of the transfer rules of the Municipal Participation Fund (FPM) and applies a regression discontinuity designs (RDD) to capture the effects that have impacted municipal budget rates from 2013 to 2016. The comportment hypothesis is that transfer gains can generate (a) perverse incentives, if the gains are earmarked for personnel and administrative expenses or if they decrease revenue, or (b) beneficial incentives, if the main gains are spent on education or health. The results found for the estimates of the data panel model suggest that an increase in exogenous revenue generates a significant increase only in spending on administrative and sports and leisure functions and that the possible channel for this increase in expenses should be aimed at increasing the number of employees with commissioned position. These results indicate that the transfers generate only perverse incentives. This article explores how local managers allocate their resources according to their additional budget. Unlike the other works, we look for the mayor's behavior in relation to spending on the employment of commissioned civil servants, which can lead to perverse incentives.</p></div>","PeriodicalId":100785,"journal":{"name":"Journal of Government and Economics","volume":"13 ","pages":"Article 100104"},"PeriodicalIF":0.0,"publicationDate":"2024-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2667319324000089/pdfft?md5=4bb2a616a455418e869a0cc16d51bd01&pid=1-s2.0-S2667319324000089-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140274986","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Safety effects of property rights contract changes: Evidence from field experience in fisheries","authors":"Akbar Marvasti","doi":"10.1016/j.jge.2024.100105","DOIUrl":"10.1016/j.jge.2024.100105","url":null,"abstract":"<div><p>I measure the effect of contract changes on selected fishery resources in the Gulf of Mexico (GoM). I apply the difference-in-difference approach to commercial fishery panel data. My cross-sectional units use the red snapper and grouper-tilefish fisheries in the GoM as treatment groups and the fisheries from same group of species in the U.S. South Atlantic (SA) as the control group. The results show that the grouper-tilefish individual fishing quota has improved commercial fishing safety in the GoM. The modest effect from the red snapper individual fishing quota program seems to be due to interrelatedness and economies of scope stemming from the multispecies nature of the reef fish fishery in the GoM.</p></div>","PeriodicalId":100785,"journal":{"name":"Journal of Government and Economics","volume":"13 ","pages":"Article 100105"},"PeriodicalIF":0.0,"publicationDate":"2024-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2667319324000090/pdfft?md5=75d644e49ae99a21d468249828f15975&pid=1-s2.0-S2667319324000090-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140796228","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A light model of international governance, colonization and the quality of financial markets, mayor's behavior facing a windfall of revenue, economic freedom and fiscal multiplier, and the privatization of commons","authors":"Zhangkai Huang, David Daokui Li","doi":"10.1016/j.jge.2024.100106","DOIUrl":"10.1016/j.jge.2024.100106","url":null,"abstract":"","PeriodicalId":100785,"journal":{"name":"Journal of Government and Economics","volume":"13 ","pages":"Article 100106"},"PeriodicalIF":0.0,"publicationDate":"2024-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2667319324000107/pdfft?md5=f59209e147994d26a494dbe84e39dfb1&pid=1-s2.0-S2667319324000107-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140766931","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How to smooth US-China economic relations for the benefit of the global economy: A light model of global economic governance","authors":"Dani Rodrik","doi":"10.1016/j.jge.2024.100097","DOIUrl":"10.1016/j.jge.2024.100097","url":null,"abstract":"<div><p>The U.S.-China conflict is threatening continued global economic prosperity and this has inspired a variety of predictions and prescriptions on the future global order. This paper proposes a light model of global governance not only to form international agreements across countries but also to smooth U.S.-China relations. There are two elements of the light model: 1) A transparency-enhancing process for domestic policy making and 2) A meta-regime for global order that only requires a minimal set of initial agreement among states for managing economic conflict while encouraging cooperation. There are two main reasons behind my proposal. First, in the economic domain there fewer global public goods than is widely believed. Second, international cooperation should be restricted to true beggar-thy-neighbor policies, rather than other kinds of cross-border spillovers.</p></div>","PeriodicalId":100785,"journal":{"name":"Journal of Government and Economics","volume":"13 ","pages":"Article 100097"},"PeriodicalIF":0.0,"publicationDate":"2024-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2667319324000016/pdfft?md5=96f9b7284eda0bd16d99034c1a3d3f3c&pid=1-s2.0-S2667319324000016-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139539675","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Rafael Acevedo , Maria Lorca-Susino , Jose U. Mora
{"title":"The unfree, the freer, and the government: Economic freedom and the fiscal multiplier","authors":"Rafael Acevedo , Maria Lorca-Susino , Jose U. Mora","doi":"10.1016/j.jge.2024.100098","DOIUrl":"10.1016/j.jge.2024.100098","url":null,"abstract":"<div><p>We investigate the causal effect of government spending on real output conditional on economic freedom. Using data for 161 countries from 2000 to 2019 results show, first, that the size of the fiscal multiplier is inversely related to the level of freedom and, second, countries with the mean level of economic freedom of the sample (6.9) had a multiplier of around 1. Developed countries are characterized by high levels of freedom and a fiscal multiplier lower than 1 while developing countries exhibit a fiscal multiplier higher than 1 and low levels of freedom. The differences between countries with low and high economic freedom in their fiscal multipliers are asymmetric, in fiscal contractions are higher. We conclude that countries should strengthen institutions to promote economic freedom and development.</p></div>","PeriodicalId":100785,"journal":{"name":"Journal of Government and Economics","volume":"13 ","pages":"Article 100098"},"PeriodicalIF":0.0,"publicationDate":"2024-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2667319324000028/pdfft?md5=00189c8100086590d29a25da97152604&pid=1-s2.0-S2667319324000028-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139395200","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Désiré Avom , Bruno Emmanuel Ongo Nkoa , Charles Christian Atangana Zambo , Ulrich Kevin Kamdoum Kamwa , Donald Ferdinand Okere Atanga
{"title":"Colonial origins and growth of financial markets in Africa: A comparative analysis based on institutions","authors":"Désiré Avom , Bruno Emmanuel Ongo Nkoa , Charles Christian Atangana Zambo , Ulrich Kevin Kamdoum Kamwa , Donald Ferdinand Okere Atanga","doi":"10.1016/j.jge.2024.100099","DOIUrl":"10.1016/j.jge.2024.100099","url":null,"abstract":"<div><p>This paper studies the effect of settlement and mortality on the growth of African financial markets using the mediation of institutions over the period 1996–2017. A comparative result is based on two types of data bases. Firstly, the Acemoglu et al.’s (2001) database and the Albouy's (2006) database. Two samples including 29 for the settler mortality rate and 33 for the settler rate have been chosen. Applying ordinary least squares (OLS) regression, we find that institutions exert a negative and significant influence on financial market growth in African countries where settler mortality rates were high while in countries where settlers settled, the interaction effect of settler sedentarization rate and institutions is positive and significant. These results remain robust to several tests conducted. As a key recommendation, we suggest that African governments put in place new institutional governance policies that take into account the current economic context to further improve the growth of their financial markets.</p></div>","PeriodicalId":100785,"journal":{"name":"Journal of Government and Economics","volume":"13 ","pages":"Article 100099"},"PeriodicalIF":0.0,"publicationDate":"2024-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S266731932400003X/pdfft?md5=7fb351350fc5595b7420ce3cef2851bf&pid=1-s2.0-S266731932400003X-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139395578","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Central bank digital currency, monetary policy and gender discrimination, the employment effect of minimum wage, politically good inefficiencies, and corruption and development","authors":"Zhangkai Huang, David D. Li","doi":"10.1016/j.jge.2024.100100","DOIUrl":"10.1016/j.jge.2024.100100","url":null,"abstract":"","PeriodicalId":100785,"journal":{"name":"Journal of Government and Economics","volume":"12 ","pages":"Article 100100"},"PeriodicalIF":0.0,"publicationDate":"2023-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2667319324000041/pdfft?md5=13c8d204eae1ab7a58b072c773952a4a&pid=1-s2.0-S2667319324000041-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139538655","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}