Fiscal Rules for Natural Disaster- and Climate Change-Prone Small States

Nakatani, Ryota

doi:10.3390/su13063135

Cited by 19 publications

(8 citation statements)

References 84 publications

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“…This is analogous to the inverted U-shaped relationship between public debt and economic growth (or fiscal balance)(Nakatani 2021b). The idea is that net benefits to debt financing arise for firms/countries with low debt levels but decrease as leverage reaches high levels.…”

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confidence: 87%

Productivity drivers of infrastructure companies: Network industries utilizing economies of scale in the digital era

Nakatani

2023

Ann Public Coop Econ

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What drives the productivity dynamics of infrastructure companies? Using a panel of firms in 14 countries, we study total factor productivity (TFP) enhancers of utility and network services companies. We find that moving TFP closer to the technological frontier drives productivity growth at higher speeds in Asian countries than in European countries. We also find that financial leverage exerts a positive effect on TFP growth for larger infrastructure firms and that more financially developed countries utilize economies of scale through better use of financial resources. Large utility and transportation companies display a higher rate of TFP growth, indicating that a competition policy to encourage M&As would be prudent for the utility/transportation sectors to maximize economies of scale. In contrast, we find diseconomies of scale for energy companies in some countries. Moreover, young network firms improve TFP growth faster than their peers in countries with fewer product market regulations. Therefore, policies should remove entry barriers while facilitating the departure of old and low‐productivity firms from network markets. Finally, policymakers should offer well‐targeted fiscal incentives for intangible investments to boost TFP because the accumulation of intangible assets such as digital technology promotes more scale economies through network effects.

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confidence: 87%

Productivity drivers of infrastructure companies: Network industries utilizing economies of scale in the digital era

Nakatani

2023

Ann Public Coop Econ

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“…Therefore, our analysis indicates that policymakers in low-income countries should be very careful about this adverse effect on a nation's fiscal sustainability when decentralizing revenue administration to local governments. 1982-20191982-20191982-20191982-2019…”

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confidence: 99%

Revenue Decentralization and the Probability of a Fiscal Crisis: Is There a Tipping Point for Adverse Effects?

Nakatani

2023

Public Finance Review

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Does government revenue decentralization affect the probability of a fiscal crisis? Is there a tipping point where revenue decentralization worsens the probability of a fiscal crisis? To answer these questions, we use cross-country panel data on 66 countries from 1982 to 2019. The binary choice models show that revenue decentralization is positively associated with crisis probability when countries exceed a certain threshold of decentralization. When more than approximately 16 percent of general government revenue is decentralized to local governments, this adverse effect of revenue decentralization occurs. This is consistent with the recent theoretical prediction that tax revenue collection efforts weaken as the government decentralizes revenue more. The adverse effects of revenue decentralization are large in low-income countries. Our finding implies the benefits of revenue centralization, such as economies of scale for revenue agencies, eliminating externalities due to tax competition, and the intergovernmental insurance role of federal transfers against local shocks.

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“…Accounting for other adaptive margins may also differentially drive the propagation of shocks in countries that are more sheltered from weather shocks. Similarly, the analysis does not account for fiscal policy responses that can be implemented to address climate-induced economic losses (Nakatani, 2021;Noy & Nualsri, 2011). First, these policies play usually a role in the aftermath of natural disasters.…”

Section: Discussionmentioning

confidence: 99%

Sectoral Impact and Propagation of Weather Shocks

Zappalà¹

2023

IMF Working Papers

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Thube and participants at the IMF Fiscal Affairs Seminar, the PSE-CREST Informal Workshop in Empirical Environmental Economics and the GSIE Seminar (PSE) for useful comments. I thank Phyo Ba Kyu for clarifications on the UNSD data. Part of the research was conducted as part of the Fund Internship Program at the International Monetary Fund. I also gratefully acknowledge financial support by a French government subsidy managed by the Agence Nationale de la Recherche under the framework of the Investissements d'avenir programme (ANR-17-EURE-001). All remaining errors are mine.

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Fiscal Rules for Natural Disaster- and Climate Change-Prone Small States

Cited by 19 publications

References 84 publications

Productivity drivers of infrastructure companies: Network industries utilizing economies of scale in the digital era

Productivity drivers of infrastructure companies: Network industries utilizing economies of scale in the digital era

Revenue Decentralization and the Probability of a Fiscal Crisis: Is There a Tipping Point for Adverse Effects?

Sectoral Impact and Propagation of Weather Shocks

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