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In this paper, we study the impact of fiscal rules, in the form of explicit deficit or debt constraints, on fiscal policy volatility. The main motivation behind this research is, on the one hand, a negative and robust correlation of fiscal policy volatility and long run growth documented in several papers and, on the other, the relatively small number of works that discuss possible determinants of the former. We argue that fiscal rules have a significant impact on fiscal policy volatility, but depending on the target of the rule -public debt or fiscal balance-rules will increase or decrease policy volatility. This result is novel, and, to the best of our knowledge, has not been discussed in the literature.
The previous and latest crises confirmed that stability of external financing of the economy is determined not only by the volume of capital inflow but also by its structure. It is established that a bias in gross external liabilities towards debt, especially short-term, may rise vulnerability to financial crises. Greater share of equity capital, mainly direct investment is not found to bear such financial risk. The results of Bayesian Model Averaging (BMA) show that influence of variables inherent in macroeconomic and portfolio approaches varies depending on the type of capital inflow and the group of countries. We also find some arguments that equity investment is a more desirable form of foreign capital because debt inflows are more responsive to global factors and therefore more volatile. As a word of caution, we highlight the need for diversification and careful monitoring of external financing sources and forms.
Based on the original and unique data collected from 1000 users of PANEK CarSharing in Poland (the biggest car sharing company in Warsaw), we explored the roles of social trust and social capital in stipulating the process of value co-creation, understood as the ability to share information (engage in dialogue) with other users and the system operator. Our results indicate that particular trust has a more positive influence on the dialogue between users and the operator than general trust. This means that the higher social capital that can be established among a relatively coherent group of people with similar interests and common goals is more important than the general trust arising from our assumption that all people can be trusted, even if we do not know them. Moreover, those customers who see a shared car as a substitute for private ownership as well as those who are more environmentally aware, reveal greater propensity to share information. An important incentive for information sharing is its positive influence on improving the quality of a car sharing system.
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