Bank capital and the macroeconomy: Policy considerations

We develop a macroeconomic model in which the balance sheet condition of financial institutions plays an important role in the determination of asset prices and economic activity. The financial intermediaries in our model are required to make investment commitments before a complete resolution of idiosyncratic funding risk that can be addressed only by costly refinancing, forcing them to behave in a risk-averse manner. The model shows that the balance sheet condition of intermediaries can drive asset values away from their fundamentals, causing aggregate investment and output to respond to shocks to intermediaries. We use this model to evaluate several public policies designed to address balance sheet problems at financial institutions. With regard to short-run policies, we find that capital injections conditioned upon voluntary recapitalization can be a more effective tool than asset purchases. With regard to long-run policies, we demonstrate that higher capital requirements can have sizable short-run effects on economic activity, and that a long transition period helps avoid undesirable side effects. Finally, we show that the marginal effects of policies can be larger during “crises” because of the nonlinear interactions between some financial frictions and policy actions.     

The Ethical Frameworks of Social Media Policies Among U.S. Nonprofit Organizations: Legal Expectations,Dialogic Prescriptions,and a Dialectical Model

Nonprofit organizations are experiencing a new world of fundraising, marketing, and stakeholder engagement on a scale previously unseen and due largely to social media. This study investigated the extent to which nonprofits craft social media policies using ethical frameworks to guide online activity mindful of this new reality. Assessing the top 100 U.S. nonprofits and their social media policies, this study examined the 80,000 words of text extant within the available 55 nonprofit social media policies and found emergent themes that articulate the current ethical state of nonprofit social media policies. Hand-coding processes yielded themes of engagement, responsibility, privacy, protection, transparency, and respect. Computer-coding additionally aggregated these themes into larger themes of privacy, sharing, communication, accuracy, inaccuracy, engagement, and dialogue. Further analysis explored the ways in which nonprofit social media policies imply a dialectical model of ethical frameworks between legal and dialogic dimensions.     

Does personal background influence a finance minister to cook the books? An investigation of creative accounting in Swiss cantons

This article aims to identify the factors influencing the use of creative accounting in the public sector. Its distinctive feature is that it sheds light on creative accounting when used, not to hide public deficits, but to conceal surpluses. It especially explores the impact of the finance minister’s (FM)’s background on the phenomenon. We take advantage of the quasi-experimental settings of the Swiss cantons in which the financial management act sets out the possibility of implementing certain accounting gimmicks, including mainly additional ‘depreciation’ charges. These charges, which are depreciations in name only, enable the FM to artificially inflate expenses, thus increasing the deficit or reducing the surplus. Our panel data set of the 26 cantons over the period 1980–2012 includes a new data set of creative accounting and of 116 cantonal FMs. Our results indicate that the FMs cook the books irrespective of their personal or ideological background with the exception that trained economists tend to apply creative accounting more. Additionally, stringent fiscal rules urge FMs towards more surplus-hiding accounting.     

支持辽宁文化事业大发展的财政政策研究

文化建设是中国特色社会主义总体布局的重要组成部分,文化发展离不开财政的大力支持。财政政策的目标应与辽宁省国民经济以及文化发展的目标相一致。财政政策主要是拉动文化增长的政策,着力点应放在扩大内需上。为了促进辽宁文化事业的大发展、大繁荣,必须制定相应的财政支持政策,而且应做到多项并举。     

地方财政压力与投资多样性——基于所得税分享改革的研究

利用企业所得税分享改革构建强度倍差模型，使用1997—2012年全国地级市数据，检验了地方财政压力对于投资多样性的影响及相关传导机制。结果表明，地方财政压力不利于投资多样性的提高；在财政压力下，地方容易形成偏向房地产行业的投资倾向。然而，不同地区地方财政压力对投资结构的影响存在异质性。经济发展水平较低的地区在财政压力下更容易降低投资多样性；而经济发展水平高的地区应对财政压力时，更倾向于通过多元化投资的方式做大税基、减轻财政压力。优化分税制结构、建立地方性税种能缓解地方财政压力，对于改变地方“房地产集中型”投资结构有一定的积极作用。     

Government spending multipliers in contraction and expansion

This paper investigates the impact of government spending on output and the size of the spending multiplier during periods of output contraction and expansion. It also investigates the impact of spending when the economy hits the nominal zero lower bound. It uses a panel of 21 advanced countries over the period of 1979–2011, applying a TSLS estimation technique. We find a spending multiplier of close to 1 during expansion and values of up to 3 during contractions. However, our results do not indicate a difference in the impact of spending during nominal zero lower bound periods.     

Decomposing local fiscal multipliers: Evidence from Japan

Recent studies on fiscal policy use cross-sectional data and estimate local fiscal multipliers along with spillovers. This paper estimates local fiscal multipliers with spillovers using Japanese prefectural data comparable with the national accounts. We estimate the local fiscal multiplier on output to be 1.7 at the regional level. We decompose the regional fiscal multiplier into the prefectural fiscal multiplier and the region-wide effect. Converting the latter component into the spillover, we find that the spillover is positive and small in size. We also decompose the regional fiscal multiplier on output into multipliers on the expenditure components. Our estimates suggest that there are crowding-in effects of government spending on consumption and investment. Moreover, we find that the regional fiscal multiplier on absorption exceeds 2.0 and that the spillover to absorption is considerable in contrast to the spillover to output.     

Land use and land cover scenarios: An interdisciplinary approach integrating local conditions and the global shared socioeconomic pathways

Land Use and Land Cover (LULC) changes have profound impacts on the functioning of (agro)ecosystems and have potential to mitigate global climate change. However, we still lack interdisciplinary methods to project future LULC scenarios at spatial scales that are relevant for local decision making and future environmental assessments. Here we apply an interdisciplinary approach to develop spatially explicit projections of LULC at a resolution of 30 × 30 m informed by historic relationships between LULC and their key drivers, within the context of the four qualitative scenarios of global shared socioeconomic pathways. We apply this methodology to a case study in the Zona da Mata, Brazil, which has a history of major LULC changes. The analysis of LULC changes from 1986 to 2015 indicates that pasture area decreased from 76 to 58 % of total area, while forest areas increased from 18 to 24 %, and coffee from 3 to 11 %. Environmental protection legislation, rural credit for smallholder farmers, and demand for agricultural and raw products were identified as main drivers of LULC changes. Projected LULC for 2045 strongly depends on the global socioeconomic pathway scenarios, and forest and coffee areas may increase substantially under strong government measures in the environmentally conscious Green Road scenario or decrease in the high consumption Rocky Road scenario. Our study shows that under the set of drivers during the past three decades reforestation can go hand in hand with increase of agricultural production, but that major and contrasting changes in LULC can be expected depending on the socioeconomic pathway that will be followed in the future. To guide this process, LULC scenarios at the local scale can inform the planning of local and regional development and forest conservation.     

Green infrastructure and public policies: An international review of green roofs and green walls incentives

Worldwide, green infrastructure is increasingly used to mitigate the impacts of dense urban areas, contributing towards the naturalization of the built environment. However, for investors, these systems often emerge as requiring substantial upfront cost (high installation costs) and, depending on the solution, might also have significant maintenance costs. On the other hand, policymakers are placing green infrastructure on the agenda, as a solution to consider in urban planning and design. There is a mismatch between the economic/social/environmental value of green infrastructure and their financial analysis. As the quantified benefits of these solutions may not compensate the high implementation costs, discouraging building owners to invest in them. The alignment of both expectations, public and private agents, regarding the development of green infrastructure, is done through the use of incentives, with distinct configurations and nature, that promote and facilitate the adoption of green infrastructure by private investors. This research aims to identify and analyse the incentive policies used by several municipalities to promote the installation of green roofs and/or green walls. The data set includes 113 cities in 19 countries. The incentive policies were classified into six different categories: tax reductions, financing, construction permit, sustainability certification, obligations by law and agile administrative process. The results show that incentive policies are mainly concentrated in Europe and North America, and most incentive policies focus on the promotion of green roofs, as no exclusive incentive policies for the promotion of green walls were found. From all incentive policies studied, financial subsidies and obligations by law are the most used ways to promote green infrastructure worldwide.