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Constraining
the Spending Behavior of Subnational Governments Through Borrowing
Limitation: The Case of Malaysia --
Ahmad
Zafarullah Abdul Jalil and Noor Al-Huda Abdul Karim
In
literature, subnational governments have been identified as
being prone to fiscal profligacy. In response to this problem,
some countries choose to put a limit on the borrowing capacity
of the state and local governments. This is notably the case
for Malaysia with the enactment of Article 111(2) of the Constitution.
However, it is important to examine whether such regulation
really has an impact on the spending behavior of state governments.
This paper attempts to shed some light on this question by
employing the methodology usually found in the study of intertemporal
behavior.
©
2008 The Icfai University Press. All Rights Reserved.
Asymmetric
Information and Regional Transfers: Federalism versus Devolution
--
Luciano
G Greco
Intergovernmental
transfers under asymmetric information have been analyzed
basically through adverse selection models. This setting fits
well in the stylized facts of consolidated federalism, though
it is unsatisfactory to analyze the recent devolution of fiscal
powers. In the latter case, the fundamental informational
asymmetry between central and local governments is related
to the imperfect verifiability of local policies. The paper
shows that, whatever the institutional setting, asymmetric
information reduces the scope for interregional equalization.
©
2008 The Icfai University Press. All Rights Reserved.
The
Cost of Risk Sharing: The Effects of Savings Subsidization
and Longevity on Gifts, Fertility and Savings --
Chong
Mun Ho, Brian Dollery and Qing Bin Liu
Like
many advanced nations, Malaysia is undergoing profound demographic
changes that are bound to have far-reaching economic and social
repercussions in future. A critical feature of future Malaysian
society will be the need to provide economic security to older
people. Thus, it is important that policy makers consider
the various options available to meet this need. While some
progress has already been made, including the introduction
of the National Policy for Older Persons in 1995, much remains
to be done.
©
2008 The Icfai University Press. All Rights Reserverd.
Government
Expenditure and Economic Growth: Evidence from India --
Ranjan
Kumar Dash and Chandan Sharma
The
literature regarding the impact of government expenditure
on economic growth is at best mixed. Given the conflicting
results, we examine the impact of government developmental
expenditure on India's economic growth. Our study spans the
period from 1950 to 2007. We have employed standard time series
technique (unit root test and cointegration analysis) for
our analysis. By applying Engle and Granger two-step methodology
for cointegration analysis, we found that investment and trade
have positive impact on economic growth, as their coefficients
are significant at 5% level of confidence.
©
2008 The Icfai University Press. All Rights Reserved.
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