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We examine how the cost of issuing equity affects bank lending. Using the SEC deregulation that allowed exchange listed firms with public float less than $75 million to raise equity via shelf registrations as a quasi-natural experiment, we show that the affected banks increase mortgage lending relative to control banks. Furthermore, we find that MSAs with more lending from affected banks experience higher house price growth rates than other MSAs.

This paper investigates the importance of accessing public capital markets through an initial public offering (IPO), and the consequent relaxation of firms’ financial constraints, for firm-level long term employment decisions. We find that firms significantly increase post-IPO investment in human capital compared to the pre-IPO stage. To address endogeneity concerns, we use a novel dataset of private firms and compare employment growth of IPO firms with two different control groups: First, private firms that file for an IPO but eventually withdraw their offering due to exogenous market conditions, and second, a propensity score matched sample of private firms that never file for an IPO. Firms that complete the IPO process experience higher employment growth in the post-IPO period relative to each control group. Importantly, our results show that the most likely channel for the realization of higher employment growth is the relaxation of financial constraints, allowing the newly public firms to access both equity and debt markets for funding investment in human capital, and not only capital expansion. Overall, our results highlight the importance of public capital markets for job creation over long term horizons. JEL Classification: G32, G34.

India’s eastern states comprising Bihar, Jharkhand, West Bengal and Odisha are way behind the agriculturally developed states in increasing public and private capital formation in agriculture. A significant upturn in the budgetary outlays in agriculture and irrigation (on both investments and input subsidies) has taken place from mid-2000 in each state. However, the value of Agriculture Orientation Index remains less than one from 1981–82 to 2013–14, albeit the lowest in West Bengal, indicating that the share of agriculture and irrigation in public expenditure does not commensurate with the weight of this sector in economic value-added. The eastern states must prioritise expenditure towards agriculture and irrigation and also raise the capital intensity in these sectors to stimulate private investment and improve crop productivity. The results obtained from a two-stage least squares regression analysis verify that public capital formation in agriculture in eastern states, determined by the availability of funds, per capita income and revenue deficit, ‘crowds in’ private investment in agriculture. Favourable terms of trade, support to agriculture through input subsidy and institutional credit are other important factors that have positive bearing on private capital formation. The per hectare public expenditure on input subsidy is double than that on capital formation in agriculture and irrigation. The respective states must balance expenditure between investment and input subsidy to facilitate agricultural growth and also synchronise such expenditure with farmers’ changing asset preference towards machinery, tractors and livestock.

The study uses a comparative case study approach to analyze contrasts and similarities of capital infrastructure management at the national level in Hungary, Germany, and the USA. Public investment...

Private equity (PE) funds operate at the interface of private and public capital markets. This paper investigates whether PE fund managers have private information about the valuations of publicly traded securities. Using a dataset of cash flows from 941 buyout and venture funds, I show that PE funds’ distribution patterns predict returns of public securities in the industries of the funds’ specialization, but fund managers tend to sell at the market peaks only when they have performance fees to harvest. I find that the cost of this agency tension increases in the manager’s survival risk and that the managers’ knowledge pertains to the public firms’ future earnings rather than the discount rates. My tests distinguish market timing from reactions to the variation in risk premia and spillover effects of PE activity on public firms. The results help better understand PE performance and have strong implications for PE manager selection. It follows that PE activity embeds private information into the prices of public securities.

This paper sets up a one-sector endogenous growth model to evaluate the impact of maintenance policy on a decentralized economy. It analyzes how the maintenance policy and the nonlinear and endogenous depreciation of private capital facilitate the household’s optimistic expectation to realize. It is shown that the role of the accelerated depreciation of private capital is the key to generate local indeterminacy regardless of the tax financing regime. These theoretical findings with respect to the linkage between local indeterminacy and public maintenance are not common in the existing literature. In addition, our findings also have some important policy implications. The public sector should prudently assess the situations of private capital depreciation to reduce the occurrence of local indeterminacy while adopting the maintenance policy.

When natural disasters destroy public capital, these direct losses are exacerbated by indirect losses arising from reduced private output during reconstruction. These may be large in developing countries that lack access to external finance. We develop a general equilibrium model of a small open economy that highlights the relation between public infrastructure and private capital, to examine the effects of natural disasters and alternative reconstruction paths. Calibrating the model to data from the Caribbean Catastrophic Risk Insurance Facility (CCRIF), we examine alternative post-disaster financing mechanisms including reserve depletion, budget reallocation, sovereign disaster insurance, debt and taxation. Disaster insurance is shown to play a limited role in financing reconstruction, while budget re-allocations are potentially damaging especially if they cannibalize operations and maintenance expenditures. Absent donor grants or concessional borrowing, tax financing – where feasible – remains the least damaging financing instrument, particularly if the country risk premium on external debt is high.

Expenditure reductions played a key role in many small open economies during fiscal consolidation, with large declines in public investment. This led to a reduction in public capital stock and affected the competitiveness of these economies. After the sovereign debt crisis, the governments that consider increasing investment to replenish the public capital stock have limited fiscal space and have to avoid external imbalances. We show that using budget-neutral investment spending can generate long-term benefits of higher public capital stock while at the same time limiting negative consequences for the public finances and the trade balance. The best way of financing government investment, which preserves fiscal and trade balances, and increases welfare, is by reducing other government spending. The second-best is financing investment with value-added tax. Financing with debt worsens fiscal and trade balances, while using distortionary labour taxes reduces labour supply, increases wage costs and worsens the trade deficit in the short run.

Globalization is a process. It is difficult to pinpoint a particular event or year as a starting point. Various aspects of it affect countries and communities at different speeds and at different times. Earlier chapters have noted the increasing integration of developing countries in the world trading system and the large private and public capital flows that permitted financing of the huge deficits resulting from the first oil crisis in the 1970s. By 1990 globalization in various forms was happening and spreading all over the world. Its impact on various countries and, within countries, on various income groups was diverse. This chapter will review the experience with growth and poverty alleviation of the main regional groupings of developing coutnries in the 1990s. This is followed by a discussion of the results of a number of studies which have attempted to link globalization with particular outcomes in terms of growth and poverty alleviation. The final two sections examine the impact of two key globalizing policies on developing countries poverty alleviation: the policies on international trade and capital flows, including both official assistance and private capital. The latter is important to review as it has played a far more greater role in development than in the 1990s and in the years since.

The paper examines the relationship existing between commercial property investment returns and public capital investment (budgetary expenditures) on road infrastructure in Fadikpe area, Minna (Nigeria) with the aim of determining the degree of impact of public capital investment on commercial property investment returns. The paper addresses a pertinent policy and practice question on the impact of government’s budgetary expenditures on real estate sector of the economy. Government increasingly faces funding challenges in providing new infrastructure or improvement of existing ones, thus, keen to know the areas of greater impact of its expenditures and the extent to which the benefits from the impact may go in augmenting or providing funds (through tax) for new road infrastructure provision or repair of existing ones. The research uses the before-and-after case method to identify an increase in property values (rental and sales) as measured by the trend of property investment returns before-and-after budgetary expenditures. The results show that commercial property investment returns in the area increased after budgetary expenditure (road construction) took place. The results form the basis upon which the government should consider more budgetary allocations and expenditures related to road transportation infrastructure in its budgetary allocation decisions. The results also quantify the proposed alternative source of funding (property tax) that can be harnessed via capturing the increase in property investment returns.

A tőkealapok magán- vagy közpénzekből valósítanak meg megtérülő befektetéseket, így alkalmazásuk olyan gazdaságfejlesztést eredményez, amely a támogatásnál nagyobb hatékonyságot és hosszabb távú fenntarthatóságot biztosít a közpénzek felhasználásában. Jelen tanulmány elemzi a tőkebefektetésekkel, így különösen a közpénzek felhasználásával működő alapok alkalmazásával kapcsolatos magyar gyakorlatot, mind az empirikus bizonyítékok vizsgálatával, mind pedig azon kérdés megválaszolásával, hogy milyen előnyei és hátrányai vannak ezen eszközöknek, ezek hatékonyak és hasznosak-e vagy sem. A tanulmány két fő célja: egyrészről a jogszabályok és a magyar tőkealapok felhasználásával kapcsolatos eltérő megközelítésének elemzése, másrészről ezek felállításához és működtetéséhez kapcsolódó gyakorlati tapasztalatok, problémák és azok megoldásainak vizsgálata.

The process of institutionalization of civil society in Ukraine as one of the main actors in the public field of politics has its own specific features that affect the quality of public capital and the state of the political system. The crises in the political system of Ukraine, which led to a change of government, a surge in civic activity and the emergence of new forms of interaction between public actors, raised the issue of analysis and monitoring of the civil sector in the country and determining its role in public policy. The process of institutionalization of civil society in the Ukrainian public sphere takes place in close cooperation with state institutions, which are also structurally and functionally changing, losing traditional functions and succumbing to innovations. Institutional transformations trigger mechanisms of change in the system of actor relations and form new practices of cooperation. Complex and fragmented interactions of state and non-state institutions (new and reforming) of public policy create a multitude of network practices of cooperation and form the public capital of the modern political system of Ukraine. The formation of a new model of public policy in Ukraine on the trajectory of "bottom – up" (civil society institutions) is in line with global trends of change of institutions and practices of interaction of actors in political processes, but has significant features and difficulties. The uniqueness of the Ukrainian version is that civil society is faster and more effectively institutionalized as a public actor than a state that does not "have time" to institutionally adapt to change and due to the limited tradition of the previous governance model inhibits public sector participation in political life.

The impact of the stock of public capital on electricity consumption per capita is analysed for eighteen Latin American and Caribbean countries over the period ranging from 1971 to 2014. We rely on the ARDL approach to capture the complexity of short- and long-run relationships between the variables. The results support that the stock of public capital influences electricity consumption only on the short run, revealing that its impact is exerted mainly by an income effect that stimulates electricity consumption momently. The stock of public capital has no long-run impact on per capita electricity consumption, rising doubts on the quality of that public stock of capital to promote development. The modelling of the drivers of electricity consumption also revealed valuable insights into how the Latin American and Caribbean region has evolved. The availability of electricity generation only stimulates moderately per capita electricity consumption, supporting that the integration of Latin American and Caribbean grids that was able to disrupt the link between local generation and consumption. This conclusion is enforced by the no statistical significance of short-run impacts of the availability of electricity generation on per capita electricity consumption.

Inadequate infrastructure impedes the productivity of manufacturing firms, with negative consequences for the wider economy. This study examines how water infrastructure copes with severe weather fluctuations and analyzes the effect of unreliable water supplies on the productivity of manufacturing firms, focusing predominately on firms in developing economies. This is achieved using firm-level data from World Bank Enterprise Surveys covering more than 16,000 manufacturing firms in a cross-section of 103 countries between 2009 and 2015. The study finds that periods of significantly low rainfall lead to higher water outages, and that the overall impact is driven by the effects of drought on low-income and lower-middle-income economies, with upper-middle-income and high-income economies benefitting from more resilient water infrastructure. Furthermore, the study finds that incidents of water outages lead to lower firm productivity for firms in less developed economies. For the average firm located in a low-income or lower-middle-income economy, one additional water outage incident per day in a typical month can lead to losses of approximately 8.2 percent of annual sales. This finding calls for increased policy focus on water infrastructure services, particularly in poorer countries where water infrastructure and firms seem to be particularly vulnerable to the vagaries of rainfall.

According to Iranian government’s politics to support agriculture sector and by considering this that it is required to have capital of private sector along with the capital of public capital in this sector, the government has initiated to establish funds to support agriculture sector development on national, product, province, town and rural and tribal women levels. This survey-descriptive research aims to investigate the effectiveness of the Agriculture Sector Development Fund of Yazd Province on shareholder associations in perspective of shareholders. Methodology: Statistical population of this study includes shareholders of Agriculture Sector Development Fund of Yazd Province that were 226 persons. 110 samples were selected by the simple random method using Cochran’s formula. To analyze data, descriptive and analytical statistics were utilized. Results: After analyzing by SPSS software, findings indicated that there is a positive and meaningful relationship between variables of effectiveness scope of covered companies including improvement of position, employment, income, development of activities of shareholders, development of agriculture activities with the effectiveness of this fund. Conclusion: Making payment facilities purposeful in advantageous fields of the province such as greenhouse and also models of serving patterns and formation of production chains are some approaches.

The purpose of this research is to the identification and potential mapping as community economic empowerment capital. The method used is descriptive quantitative in order to get a deeper result. The object of this research is Pesantren in Cibadak Subdistrict, Lebak, Banten. Data collection technique used is primary data and secondary data. Data analysis techniques used is SWOT to analyze strengths, opportunities, weaknesses, and threats of economic potential in Pesantren. Based on the findings, Pesantren had sufficient capital in the economic development of the community, including public capital, educational competency capital, and capital of management pesantren. However assets, technology, and information capital owned by pesantren still low, there needs to be penetration from the government in the form of incentives to support the involvement of pesantren in economic empowerment.

We study the relationship between public infrastructure and economic growth of Brazilian municipalities between 1970 and 2010. We generalize the regional economic growth model developed Glaeser et al. (1995)by incorporating public capital in the production function of firms. As municipalities are assumed to be subjected to various forms of spatial interaction, we use an econometric method capable of accommodating heterogeneity and spatial dependence between municipalities. The results suggest that access to electricity contributes positively to regional economic growth, access to sewage collection has positive effects on population growth and access to water supplies has positive impacts on per capita wage growth. Este artigo estuda a relação empírica entre infraestrutura pública e crescimento econômico dosmunicípios brasileiros entre 1970 e 2010. Para isto, generaliza-se o modelo de crescimento econômico regional desenvolvido por Glaeser et al. (1995) incorporando o capital público na função de produção das firmas. Para estimação, opta-se por um método econométrico capaz de acomodar heterogeneidade e dependência espacial entre os municípios. Os resultados sugerem que o acesso à energia elétrica e ao abastecimento de água afetam positivamente o crescimento do salário per capita. Considerando crescimento populacional, encontra-se efeitos positivos do acesso à energia elétrica e à coleta de esgoto.

The present paper considers a closed economy model with infrastructure service which is an excludable, impure public good, e.g. metro railway service, electricity service, and telephone service etc. The physical capital required by infrastructure sector is provided by public-private partnership. Public and private investment may be complementary or substitute to each other in infrastructure production. We assume government runs a balanced budget. We find there exists unique, saddle path stable growth rate in both the cases. We find that PPP model is optimal in the provision of infrastructure no matter public capital and private capital are a substitute or complementary to each other. But, PPP solution is not growth maximizing in case of substitute relationship between the public capital and private capital. It also makes a comparative study of decentralized economy and command economy. We find that in case of substitute relationship between private capital and public capital, command economy growth rate is higher than the competitive economy growth rate but in the case of complementary relationship between two, command economy growth rate may not be higher than the competitive economy growth rate.

This paper examines external financing of small and growth firms using a regulatory experiment in the US microcap market. The paper focuses on a new financing method for entrepreneurial firms – small public offerings under Regulation A, which was significantly expanded by 2015 amendments. Regulation A offerings serve as a financing alternative for issuers that seek public capital but are unable to conduct a traditional registered public offering. Compared to small registered public offerings, Regulation A involves fewer requirements and draws smaller, younger companies, often raising capital without intermediaries or on a best efforts basis. Regulation A companies raise less capital on average after accounting for their historical financials. The use of Regulation A increased significantly following the 2015 shock, particularly in market segments that had more private placements and traditional public offerings. Different types of issuers are pursuing Regulation A and registered offerings, and Regulation A does not appear to draw issuers away from traditional public offerings.

The banking system of Ukraine entered the crisis caused by the COVID-19 pandemic highly profitable, capitalized and with a high liquidity reserve. Macro-prudential policy of the National Bank of Ukraine has prepared the banking sector well for crisis phenomena. Macro-prudential policy of the National Bank of Ukraine has prepared the banking sector well for crisis phenomena. In 2020, only two banks (as in the previous year) were declared insolvent for failing to meet capital regulations. The regulator relaxed bank requirements during the pandemic to reduce its influence on the banking system. In the article the dynamics of the main monetary policy instrument of the National Bank of Ukraine - the interest rate is investigated. The main trends in the development of the banking system over the last few years have been studied. In times of crisis, banks' assets, capital and liabilities, in particular fixed-term funds of both natural and legal persons, are growing. The fastest growth rate of funds of economic entities and funds of natural persons was exactly 2020, in which legal entities increased the amount of their fixed funds in banks by 43.3 per cent and natural persons significantly increased the volume of their funds in current accounts. However, lending (in 2019-2020) and bank profitability (during 2020) have been negative. The reasons for this are the financial difficulties of clients during the crisis and uncertainty about the future, the deterioration of the quality of credit and the additional formation of reserves by banks. Credit risk is and will continue to be the defining factor for banks. During the study period, banks with public capital have poor quality credit portfolios, and private banks have the best. Ten banks have been identified as having the largest amount of non-performing loans as of 01.01.2021, seven of which are systemically important banks. They need to make greater use of the tools available to deal with non-performing loans. A high share of NPL negatively affects the profitability and investment attractiveness of financial institutions. And the fact that 77% of non-performing bank-sector credit belongs to seven systemically important banks is a threat to the growth of systemic risk. Although the COVID-19 pandemic has had an impact on Ukraine’s banking sector, as on all other areas of society, there are as yet no significant threats to the banking system, it remains financially sustainable and profitable.

Studies have estimated that infrastructure investment in the US will fall short by USD 13–20 trillion over the next decade due to growing urbanization. Public entities should seek to maxim...

This chapter examines the productivity of governmental aid loans, the main portion of foreign aid in Thailand, using the economic growth model both in whole-country time-series data from 1971 to 2013 and in regional panel data from 1986 to 2013. The effect of foreign aid remains a point of discussion, and we hope to clarify this issue. Thailand is considered a good example of a country using governmental aid loans to develop social capital, which then fosters manufacturing industries. Three main outcomes exist. First, we determine the impact of governmental loans on economic growth in Thailand using whole-country data. Second, the marginal production effect of governmental loans has recently been reduced, although not to zero. Third, the impact of foreign aid is lower than that of public capital in Thailand in the same period. Fourth, the quantitative impact of yen loans from the Japanese government can be determined using subregional data. Overall, foreign aid has an impact on economic growth, although the magnitude is smaller than that of public capital. Moreover, the impact is large at the beginning of the development, whereas it is smaller in the process of economic growth.

This paper provides a critical review of the literature on the macroeconomic effects of public infrastructure investment associated with the main underlying transmission channels. Typically, this type of stimulus fosters economic activity in the medium-to-long run because the public capital stock needs time to build up and to exert its effects. However, under the current circumstances – such as considerable economic slack, policy rates constrained at zero and heightened uncertainty – the stimulus can be expansionary even at shorter horizons, i.e. from one to three years. Given the large infrastructure gaps in most emerging and advanced economies, infrastructure investment could have high returns in terms of individuals’ welfare and productivity growth. Strengthening health infrastructures, supporting maintenance investment, and coordinating infrastructure stimuli across countries emerge as particularly appropriate policies today.

This study conducted an assessment of public capital expenditure financing in Zanzibar for the period from 1990/91 to 2019/20. Descriptive analysis was used to investigate the type of public capital expenditure undertakings by the RoGZ and major sources of capital expenditure financing while a chi-square test was used to assess performance of public capital expenditure financing in Zanzibar. Findings demonstrated that, development strategies (ZPRP and ZSGRP I-III) put into focus public capital expenditure financing in Zanzibar. It also revealed that, foreign fund and domestic revenue are the major sources of public capital expenditure financing in Zanzibar. The study concludes that Domestic Source, mostly represented by tax revenue in Zanzibar has significantly improved. However, donor funding still heavily dominated public capital expenditure financing in term of estimates. It is further, concluded that, performance of public capital expenditure financing in term of expected values and observed values was not good. Based on the study results, it is recommended that, there is a need for the RGoZ to strengthen its effort in the tax collection and ensure larger share of the tax collected is allocated for public capital expenditure financing in order to reduce over dependency on foreign source for financing capital expenditure in Zanzibar. Keywords: Public Capital Expenditure, Domestic revenue, Foreign revenue, Chi-square DOI: 10.7176/JESD/12-2-06 Publication date: January 31 st 2021

A special purpose acquisition company (SPAC) allows sponsors to directly access public capital markets to raise funds to conduct acquisitions. Traditionally, such sponsors would raise capital by first tapping private markets to initiate a venture capital (VC) or private equity (PE) fund. We present a model that lends itself to an evaluation of the traditional PE-to-IPO approach and SPAC financing. PE-to-IPO financing more efficiently separates high-quality from low-quality sponsors. SPAC financing more efficiently separates good acquisitions from bad acquisitions and therefore is the preferred mode of funding for firms subject to severe adverse selection. According to our model, the recent rise of intangible assets and technology companies can explain the increased use of SPAC financing.

As the Covid-19 pandemic evolves, healthcare system sustainability and resilience worldwide has been in the spotlight. Observations indicate the significant human and financial capital requirements to address the immense pressure. While the pandemic constitutes an unprecedented shock, the coordinated mobilization of public capital and intervention in the healthcare systems worldwide provide a prime opportunity for sustainable change and transformation. This can materialize if efforts and funding focus on socio-economic and healthcare system innovation, infrastructure and green investment support. This chapter discusses the public financing responses worldwide towards the support of healthcare systems in view of the Covid-19 pandemic. It also discusses the organizational challenges and changes that should be put in place to make the healthcare system resilient to unforeseen shocks. These regard innovation support, healthcare personnel planning, establishing new models of care delivery, and other interventions that have the potential of securing uninterrupted, sustainable and efficient healthcare systems both at the personal and at the population level.

There is a share of the investment capital available in any society that is generated by the public. In contemporary societies with well-developed payments systems and effective public governance, this share tends to grow large in comparison to that originated by non-public sources. For the latter is intermediated and thus must be pre-accumulated, while the former is generated and is the source of what is accumulated. In spite of these truths, the US outsources management of its public capital stock to private sector financial institutions. This is a practice which a host of under-appreciated collective action predicaments endemic to decentralized market exchange, most of them recursive and hence iteratively self-worsening without limit, ensures will result in misallocation and, therefore, poor modulation of credit aggregates as well. What is needed to draw public capital out of bubble-inflation and back into productive investment is to bring it back under public management, a project for which the present exposition provides a full architecture. This architecture is modeled as a stylized public balance sheet, taking the US Treasury and Federal Reserve System as consolidated case study. Public liabilities take the form of Democratic Digital Dollars issued through interest-bearing digital Business and Citizen Wallets. Public assets take the form of public credit extended by Treasury’s Federal Financing Bank (‘FFB’) and a newly ‘Spread Fed’ only for productive, not speculative, projects. A National Reconstruction & Development Council (‘NRDC’) and Price Stabilization Fund (‘The People’s Portfolio’) complete the picture, respectively affording democratic guidance as to what counts socially as ‘productive’ and collaring volatility among Systemically Important Prices and Indices (‘SIPIs’). Our public capital stock is a public resource in need of public management, which must be managed productively by and for the community.

We examine the evolutionary path of companies' corporate social responsibility (CSR) since their debuts as public companies. We find that firms' average CSR score is rising over the time they are listed in the public capital market. Neither the CSR score change over the age of the firm nor the general trend of CSR over time can explain this pattern. The phenomenon is more likely driven by the number of years the firms have been in the public market. We further find supporting evidence that this pattern of rising CSR since the public listing is more pronounced when the firm is more profitable, holds more cash, has a higher payout ratio, or has more free cash flows. Overall, our findings support the hypothesis that improving CSR performance may not be the priority of most firms new to the public market, but the "public camera effect" is an effective mechanism to assure the growth of CSR assuming the firms remain in the public market.

This paper studies the growing presence of private equity (PE) acquirers in the hospital industry. We examine employment, operational efficiency and patient outcomes at hospitals acquired by PE firms. While the total employment at target hospitals significantly declines, the proportion of physicians and nurses in the total workforce (skilled worker ratio) increases for hospitals acquired by a publicly traded PE backed hospital. Employment cuts also occur in hospitals acquired by non-PE acquirers, but skilled worker ratio does not increase in those hospitals. PE-backed acquirers, especially publicly traded ones, are also uniquely associated with reductions in overhead costs. Consistent with PE acquirers increasing skilled worker ratio, patient satisfaction scores do not decline at PE-acquired hospitals and even improve along some dimensions. In contrast, patient satisfaction significantly worsens at hospitals acquired by non-PE acquirers. Examining real patient outcomes, we find that PE acquirers are not associated with higher mortality and readmission rates at target hospitals than non-PE acquirers. Overall, our paper provides a comprehensive look at the role of PE acquirers in the hospital industry, and documents nuanced differences between PE and non-PE acquirers, as well as between PE backed acquirers with and without access to public capital markets.

This chapter introduces the readers to a public capital management and budgeting process and its role in generating public infrastructure networks. The main purpose of the chapter is to describe the normative public capital management and budgeting practices that are recommended by the public finance literature. These normative practices are segregated into four main components: (1) long-term capital planning, (2) capital budgeting and financial management, (3) capital project execution and project management, and (4) infrastructure maintenance. Given that the literature recommends specific practices to maximize efficiency in public capital spending, the four main components, combined, are referred to as the systematic capital management and budgeting process. The systematic process discussed in detail in this chapter is used as a common framework for each of the 12 country case studies in describing their respective public capital management and budgeting practices.

This study examines whether the increased availability of bank loans affects borrowers’ voluntary disclosures. Exploiting the staggered deregulation of interstate bank branching across states in the U.S., I find that bank-dependent firms decrease their voluntary disclosures following bank branching deregulation. This overall effect is muted for firms with higher information asymmetry in the public capital markets and higher litigation risk. Furthermore, the decline in voluntary disclosures is more pronounced among borrowers with higher proprietary information costs and stronger lending relationships with their lenders. Further analysis reveals that bank-dependent firms that stop issuing earnings guidance after branching deregulation experience decreased liquidity in the equity market. Overall, this paper sheds light on how regulatory changes in the banking sector have externalities on borrowers’ disclosure decisions.

Purpose- This empirical study facet at Pakistan for the period between 1960 and 2017 in the connection between public investment, public capital stock, private investment, private capital stock, and real GDP. Design/Methodology- Using theoretical and empirical literature assessment, to measure the impact of private investment, private capital stock, government investment, and government capital stock on Pakistan's real gross domestic product, we involved the ARDL Bound tests. Findings- A positive and significant connection was revealed between government investment, a private capital stock with real GDP. Private investment showed a substantial but negative impact in the short run, despite capital stocks indicating a positive and insignificant relationship with Pakistan's RGDP. The long-term consequences showed that the government's capital stocks, public investment, private capital stocks, and RGDP from Pakistan are linked positively and significantly. Private investment, however, has shown harmful and detrimental or insignificant relations with Pakistan's RGDP. Practical Implications- Our study may benefit the Pakistani economy, particularly while useful for academics and researchers to understand the basic concept of 'capital-growth' philosophy.

The aim of this study is to analyze the efficiency and productivity of commercial banks operating in Turkey. For this purpose, the efficiency and productivity of 23 commercial banks operating in Turkey, whose continuous data of the years 2005-2018 were reached, have been analyzed through DEA and Malmquist Total Factor Productivity Analysis. In the analysis, the number of branches, number of personnel, non-interest and interest expenses were used as input, while non-interest and interest income were used as output.Looking at the efficiency results in general, banks with foreign capital are more effective than other bank groups. The banks with the highest level of efficiency from foreign banks are banks with low asset size, but they are the ones that use the specified inputs more efficiently and obtain more efficient output compared to other banks. As a result of the 2008 crisis, there has been a decrease in efficiency rates as a sector. Considering the results of 2019 compared to 2018, approximately 61% of the banks included in the analysis (14 out of 23 banks) increased their activities..Moreover, there was no decline in technological efficiency in any bank group. In technological efficiency, public capital banks are in the background compared to foreign capital and private capital banks. According to the Change in Total Factor productivity, no decline is observed from the banks analyzed in the analysis. The highest progress per bank group belongs to Foreign Capital Deposit Banks, Bu çalışmanın amacı, Türkiye’de faaliyette bulunan ticari bankaların etkinlik ve verimliliklerini analiz etmektir. Bu amaç doğrultusunda Türkiye’de faaliyette bulunan 2005-2019 yıllarına ait kesintisiz verilerine ulaşılan 23 ticari bankanın etkinlik ve verimlilikleri Veri Zarflama ve Malmquist Toplam Faktör Verimliliği Analizi ile incelenmektedir. Analizde şube sayısı, personel sayısı, faiz dışı ve faiz giderleri girdi olarak kullanılırken faiz dışı ve faiz gelirleri çıktı olarak kullanılmıştır. Etkinlik sonuçlarına genel olarak bakıldığında yabancı sermayeli bankalar diğer banka gruplarına göre daha etkin durumdadır. Yabancı sermayeli bankalardan etkinlikleri en yüksek düzeyde olan bankalar genellikle aktif büyüklüğü düşük bankalar olmakla birlikte belirlenen girdileri daha etkin kullanıp diğer bankalara kıyasla daha verimli çıktılar elde eden bankalardır. 2008 krizinin etkisiyle sektör olarak etkinlik oranlarında düşüş meydana gelmiştir. 2018 yılına göre 2019 yılı sonuçlarına bakıldığında ise analize dahil edilen bankaların yaklaşık %61’inin (23 bankadan 14’ü) etkinliklerinde artış meydana gelmiştir.Ayrıca teknolojik etkinlikte hiçbir banka grubunda gerileme görülmemiştir. Teknolojik etkinlikte kamu sermayeli bankalar yabancı sermayeli ve özel sermayeli bankalara göre geri planda kalmaktadır. Toplam Faktör Verimliliğindeki Değişime göre analizde incelenen bankalardan gerileme gözlemlenmemektedir. Banka grubu bazında en yüksek ilerleme Yabancı Sermayeli Mevduat Bankalarına aittir.

The “resource curse” is often understood to imply poor growth in the non-resource sectors of the economy, but research into the diversification performance of resource-rich countries is limited. This paper surveys recent evidence and identifies empirical patterns in the economic diversification of resource-rich countries. Diversification is measured using the growth of per capita non-resource (manufacturing and services) sectors in domestic and export markets, which has a cleaner interpretation than competing measures. This measure is used to evaluate the long-term diversification of countries that started off as resource-dependent, and to rank countries according to their performance. We then identify policy-relevant correlates of diversification at the national level, including the acquisition of human capital, public and intellectual capital, and firm dynamism. More resource-dependent countries appear to perform worse on measures of human capital and intellectual capital, but more resource-abundant countries perform better on public capital and human capital accumulation. We examine the mechanisms behind diversification performance through in-depth case studies of Oman, Laos, and Indonesia, and conclude by identifying policy lessons and future research directions.

This study considers the consequences of external loan on capital investment in Nigeria. Data for the study have been collected from the World Bank and Central Bank of Nigeria Statistical Bulletin, 2018 edition. The variables on which data are sourced include government capital expenditure, external debt accumulation, debt servicing cost, inflation rate, and exchange rate. Government capital expenditure is the dependent variable, while external debt accumulation and debt servicing cost are the key independent variables. Inflation and exchange rates are used as the moderating variables. The scope of the study covers the period from 1996 to 2018 and the data are analysed using the ordinary least squares multiple regression method. The regression results indicate that external debt has a significant negative impact on capital investment while debt servicing cost has a strong and significant positive effect on capital investment. Under this circumstance, the controlling variables are not significant in influencing capital investment. Hence, the study suggests more focus on profitable capital investments if external borrowing must be embarked upon. The need for the development of untapped natural resources, establishment of industries and revival of abandoned industries to boost debt repayment has been emphasized. The study also strongly recommends that the existing governments (state and federal) should endeavour to complete capital projects of past administrations in order to drive the economy and to avoid wastage of financial resources including the borrowed funds.

This study proposes a novel supply-side mechanism driving economic structural transformation: grid electrification. Increasing electricity availability affects the reallocation of inputs to more productive activities through generating higher returns and lowering entry costs in sectors with greater infrastructure intensity. The results of modeling and econometric analysis based on Brazil's historical data over the period 1970-2006 confirm that the manufacturing sector benefits the most in these two dimensions, followed by services and agriculture. The expansion of electricity infrastructure explains about 17 percent of this process and 32 percent of the observed increase in GDP per capita. Simulations of a multisector neoclassical growth model with heterogeneous firms help assessing the effectiveness of different electrification policies.

Using a large dataset of Korean public and private firms, we show that public listing does not influence the supply of trade credit among firms affiliated with a large business group (chaebol). Meanwhile, non-affiliated public firms provide more trade credit to customers than their private counterparts. Public listing allows non-affiliated firms to have greater access to cheaper sources of external capital, thereby increasing the supply of trade credit. However, the results for chaebol-affiliated firms may be attributed to well-functioning internal capital markets. Our results shed light on the substitution between internal and external capital markets.

This paper examines the impact of the Regulation for Commercial Bank Capital Management in China on banks’ risk taking and disclosure behavior. We construct a risk disclosure index for Chinese commercial banks around this Regulation and find that compliance with the Regulation through a higher risk disclosure index improves bank soundness. We also find that the component of the risk disclosure index associated with risk compensation is the main driving factor of our findings. Moreover, our results show the effect of the Regulation is much smaller for publicly listed banks, suggesting a substituting regulation effect of the public capital market.

The individual was and remains the subject of interest of many scientists and economic researchers of ancient and contemporaries, where the overwhelming majority of them considered the heart of the strategy of any state or institution and any process of productivity is difficult to copy. The human capital translates into an idea of an intangible stock available to the individual that can be synthesized or used. It consists of the sum of the productive energies generally obtained through different knowledge, whether public or performance, and all that is left out. This type of capital represents a seed, , The fruit and the end of development and the variable component of development and effective in it. The economic schools of human capital have been given varying attention, and their differences in dealing with social and economic relations have been prominent. The working individual has been the focus of many economists, headed by Karl Marx and his famous theories in his book "Capital", in the theories of value and added value, The division of capitalist society into capitalist and labor classes, ie, the proletariat, shows how to buy and sell labor and wages, its relation to surplus capital and accumulation, and Taylor, which he considered "hands" capable of carrying out various actions, (1776), where the importance of the division of labor (the surplus of the 'market' of productivity gains (as a factor of development, the Thomas Maltas and the theory of population) (1796) was considered to be limited by rapid demography and by E. Mayo who made it And the study of Schumpeter (1911) Schumpeter, which was based not only on technical progress and the development of large knowledge or inventions, but also on the study of the social sciences, But added the role of the contractor and (1956) Solow and, Cass (1965) Koopmans (1965), who have become a framework of natural goods to reach human capital in all its components: the level of composition, experience, health, development, according to them, does not come this way, but by accumulating four main factors: technology, capital, human capital, public capital, Milton Friedman, Theodor Schultz and (Prix Nobel en 1995), along with Gary Becker, the author of the theory of human capital developed with the help of economist Jacob Mincer. His research dealt with subjects such as the effect of good and bad habits, discipline, drinking and drug use on human capital, And his role in the labor market. He took care of the role of the family in the formation of this capital, not forgetting economist R. Barre, who recognized that the problems of development in developing countries were not only economic but also related to individuals. This type of capital was given special attention because it dealt with many of its economic and social concepts. Examples include the issue of motivation, behavior, morality, wealth and distribution, justice Social and economic rights in the sense of equality in freedom and employment, etc ... The social world Ibn Khaldun was one of the first Muslim thinkers of religion were adopted in their studies on the Koran to address several topics related to the human resource, most of which was included in his book " G Georges Marcais "Ibn Khaldun's author is one of the most important works of human thought." This research was based on observation, "logic with the use of" enlightenin thinking "dealt with various topics affecting the individual such as learning, composition, work and division, etc., and the most important criticism was the face of the Algerian social scientist Abdelkader Jaghloul who said that Vkraben Khaldun is located in the extension of Arab thought With the creation of a clear difference between the religious sciences based on the Koran and Sunnah and the human sciences that the individual gets by thinking. The environment has undergone rapid and varied changes in all areas of work and life, which have had a major impact on management and hence transition from the optimal model stage to the flexible model. Most of the systems have now turned to the concept of flexibility and freedom from static templates. Renewed by the ability of enterprises to maximize the benefit of the various resources and possibilities in general, and of their human resources in particular. In light of the rapid change and the many challenges facing the institution, especially the system of globalization, the traditional management of human resources is no longer acceptable or sufficient to achieve competitive advantage, but it is imperative for the economic institution to move its human resources in a strategic perspective to ensure its positive adaptation to the environment, Appropriate adjustments should be made to human resources strategies and policies, such as those related to wages, employment and mobility.

Deployment of clean energy technologies in order to mitigate climate change requires large-scale mobilization of capital markets. Investors’ perceptions that renewable energy investments do not deliver attractive returns compared with conventional alternatives can impede the flow of sufficient capital to finance these requirements. This paper examines whether publicly-traded financial products offer investors competitive risk-adjusted returns, or whether renewable energy investors face a penalty for choosing sustainable assets. We use a traditional portfolio approach to test whether adding renewable energy exchange-traded funds (ETFs) to a standard portfolio provides diversification benefits over a period of study of two, six, and nine years. We also examine the benefits of investing in yieldcos, which hold operational renewable energy assets. We find that the renewable energy ETFs provide only minimal diversification benefits, and that a yieldco index fund provides none. However, given the superior performance demonstrated by yieldcos based outside the US, we repeat the optimization using a constructed index featuring non-US yieldcos, and find that it improves Sharpe ratio. The analysis suggests that public investment in renewable energy can be profitable, but existing vehicles may not be managed properly to deliver their true benefit. In particular, the non-US yieldco model demonstrates better performance and offers portfolio benefits that are not matched by US yieldcos.

We reconsider the macroeconomic implications of public investment efficiency, defined as the ratio between the actual increment to public capital and the amount spent. We show that, in a simple and standard model, increases in public investment spending in inefficient countries do not have a lower impact on growth than in efficient countries, a result confirmed in a simple cross-country regression. This apparently counter-intuitive result, which contrasts with Pritchett (2000) and recent policy analyses, follows directly from the standard assumption that the marginal product of public capital declines with the capital/output ratio. The implication is that efficiency and scarcity of public capital are likely to be inversely related across countries. It follows that both efficiency and the rate of return need to be considered together in assessing the impact of increases in investment, and blanket recommendations against increased public investment spending in inefficient countries need to be reconsidered. Changes in efficiency, in contrast, have direct and potentially powerful impacts on growth: “investing in investing” through structural reforms that increase efficiency, for example, can have very high rates of return.

Europe is facing an investment gap and the so-called financial instruments seem to be one of the solutions. They invest public sources on a repayable basis with a revolving character, which allows for a much greater efficiency in the allocation of public capital and the long-term sustainability of public investment. Policymakers see considerable value in supporting the further development of FIs and their use in both existing and new policy-related areas of activity3. The combined-credit is a unique financial development tool where credit and non-repayable assistance can be requested within a single financial product. [10,13] The paper analyses the Hungarian practice using this special financial instrument with the application of information technology, both looking at the empirical evidences and seeking for an answer to the question, whether the combined utilization of financial instruments and grants is effective, useful or not, and how the different IT solutions could affect the efficiency of this financial product. It is argued in this paper that the utilization of information technology can significantly improve the effectiveness of using financial instruments. This paper has three main aims: first, to review the legislation and the approach of Member States on the utilization of financial instruments; second, to analyse current and previous forms of IT support and their impact on the efficient utilization of the above instruments; third, to make proposals for further research on the e-government-based utilization of financial instruments.

Improving social service in local communities is a complex undertaking. Over the past few decades, the performance and sustainability of community initiatives have been questioned, while such factors as a lack of funding, insufficient community involvement, unsatisfactory community service, and lack of awareness of the impact of community initiatives have restricted community development. From a case study of community operations in Scotland, this article provides insights into how social service delivery is organized in the absence of public capital. This study utilized data from semi-structured in-depth interviews with a sample of 76 participants from a deprived area in Scotland, including community management team members (n = 6), local residents (n = 52) and community partners (n = 18). The findings illustrated how participants of all ages, local organizations, policy makers, funders and media came together to create a cohesive and responsive community environment. Residents' needs and funders...

Based on a large sample of publicly listed and non-listed US commercial banks from 1996 to 2011, we find robust evidence consistent with banks using realized available for sale (AFS) securities gains and losses to smooth earnings and increase low regulatory capital. We also find that (i) banks with positive earnings smooth earnings, and banks with negative earnings generally take big baths; (ii) regulatory capital constrains big baths; (iii) banks with more negative earnings and more unrealized beginning-of-quarter losses (gains) take big baths (smooth earnings); and (iv) banks with low regulatory capital and more unrealized gains realize more gains. Also, banks with negative earnings take big baths (avoid or reduce the earnings loss) if their unrealized gains are insufficient (sufficient) to offset the negative earnings. Our inferences apply to listed and non-listed banks, which indicates that the earnings management incentives do not derive solely from public capital markets. Our findings reveal that the accounting for AFS securities gains and losses enables banks to manage regulatory capital and earnings in a variety of ways.

This study calculates the public transportation capital stock for Turkey for the 1980-2003 period. Then those series are used to estimate the effect of public transportation investments on gross domestic product. A similar attempt is made to formulate public capital stock series for various transportation subsystems and I use them to estimate the effect of subsystem investments on the value-added (so, economic growth) of the transportation sector. Estimations indicate a positive relationship between public transportation investments and gross domestic product. At the subsystem levels, it is estimated that railway, highway, maritime, airline and pipeline investments have various effects on the value-added of the transportation sector.