Growth with Optimal Taxation and Public Spending Composition

BarroChamley, , , , : Incorporating endogenous public spending, the basic characteristic of the Barro model, into the Chamley model, this paper discusses the optimal taxation and public spending composition in economic growth. The two-stage backward induction method is adopted to explore the general optimality (including the first and second best) conditions for taxation and public spending, and the explicit solutions to optimal taxation and public spending composition are showed in a specific example. Finally, we estimate China’s optimal level of macro tax burden with the help of numerical calculation.View full textDownload full text

On the nexus of environmental quality and public spending on health care in China:a panel cointegration analysis

Does pollution drive up public spending on health care?This paper aims to answer such a crucial question empirically using a panel data set of 31 Chinese provinces during the period 1997–2014.In particular,this paper explores the non-stationarity and cointegration properties between health care expenditure and environmental indicators in a panel cointegration framework;in doing so,it examines both the long-run and the short-run impacts of the per capita provincial GDP,waste gas emissions,dust and smog emissions,and waste water emissions on the per capita public health expenditure.We apply panel unit root tests,heterogeneous panel cointegration tests,FMOLS techniques,and a panel-based error-correction model.The conclusion is that,both in the long run and in the short run,public health care expenditure is positively affected not only by the provincial economy but also by the environmental quality.

Reassessing the Empirical Relationship between Health Expenditure,Governance and Economic Growth in Africa:Analysis of Nigerian

As an aspect of human capital,a positive association exists amongst health,productivity,and growth in output per capita.On the other hand,social infrastructure defined by the institution of governance has a direct effect on the environment upon which productive activities take place to determine outcomes.Nigeria like most African countries is bedevilled by the high prevalence of inadequate health financing and poor governance.Health financing for Nigeria consistently has fallen short of the AU health funding commitment of 15%of annual budgetary allocation to the health sector.Secondly,poor governance conditions available resources and shape the state of infrastructure,particularly health infrastructure and socioeconomic conditions.In turn,this determines individuals’level of exposure to health risks and their capacity to actively contribute to productive activity for growth stimulation and sustainability.Against this backdrop,this study added to the existing literature in the context of Nigeria,by theoretically applying the Solow augmented Mankiw-Romer-Weil structural model in the examination of the impact of government size and governance quality in the health sector,on economic growth.Autoregressive Distributed Lag(ARDL)model was adopted in the estimation.Findings show that governance quality adversely affects growth and this reduces the capacity of health spending to stimulate growth by an almost equal margin.As a result,this study recommends legislative backing to the AU health funding commitment in Nigeria.

The Reasons of Income Gap between Urban and Rural Areas in China and its Policy Suggestions

This paper points out that one of the main reasons for income gap between urban and rural areas in china is difference of human capital reserve on education which are decided by Chinese government＇s urban area privileged policy and the current education system. This paper also compares the different human capital reserve in two area, and analyzes the under-qualified human capital reserve in rural areas is resulted by these following reasons： The shortage of public spending in compulsory education for several decades has contributed to low school attendance and the great illiteracy beyond urban areas; the inefficient educational system has caused peasants to lose interest in education; No support for adult education has closed the doors for adults to earn money in non-agricultural industries. Vocational schools cannot attract the huge number of potential customers since their curricula and skills are out of date. As policy suggestions, governments should invest enough money in compulsory rural education, and creating a pragmatic rural education system is also vital.

An Empirical Study of Substitution and Complementary Effects of Chinese Government＇s Public Expenditure on It＇s GDP＇s Growth

This paper presents the analytical results of substitution and complementary effect of fiscal changes, by applies the variance decomposition technique to totally isolate the growth effect of components in government＇s public expenditures on GDP. We concluded from the empirical analysis, that the government＇s purchase expenditure （Gc） has a significant explanatory power on the long-term economic growth. However, extra budget expenditure （YWZ） and the government＇s fundamental investment （TR） only have substitution effects with limited impact on the long-term economical growth.