Flexible public policy: The case of the United States wheat sector

This paper tests the proposition that flexible policy rules that tie program instrument settings to changes in market conditions can improve economic welfare compared to the prevailing practice in the United States of setting agricultural policy instruments at fixed levels once every 4 years. Flexible policy rules are obtained for the U.S. wheat sector using stochastic control methods. A constraint structure representing producer and consumer behavior and a policy criterion function representing society's weighting of various groups are estimated. It is shown that the flexible policy rules developed in this paper outperform historic policy instrument settings across a wide spectrum of economic conditions.     

Channels of monetary policy transmission in Vietnam

Since the economic reforms launched in 1986, the Vietnamese economy has registered impressive economic growth. While foreign investment is providing much needed capital, through the conduct of monetary policy, the State Bank of Vietnam (SBV), which is an integral part of the government of Vietnam, is also playing an important role in nurturing the economic growth. The aim of this paper is to evaluate the success of the SBV policies. Monetary policy actions affect all sectors of real economies with a significant lag. Without a good understanding of the transmission mechanism, monetary policy actions may not achieve the desired outcomes. Using quarterly data from 1995 to 2010, this paper focuses on monetary policy transmission mechanisms in Vietnam. Specifically, we consider the dynamic response of the Vietnamese economy to interest rate, exchange rate and foreign shocks. The estimated results based on structural vector autoregressive (SVAR) methodology suggest that monetary shocks tend to have a strong influence on Vietnam’s output. We find that Vietnam’s monetary policy is relatively more susceptible to foreign shocks.     

Are there monetary clusters in the Eurozone? The impact of ECB policy

This paper analyses what effects the monetary policy of the European Central Bank have on the economic activity of Eurozone countries. We identify groups of countries which exhibit different economic responses to monetary policy and the factors driving such spatial differences. We distinguish three periods, spanning from 2001 to 2017 and examine conventional as well as unconventional monetary policies in different economic backgrounds of expansion and crisis. We find problems of spatially asymmetric transmission of monetary policy in the period 2008M10–2014M12 and note that different spatial responses might operate in favour of monetary policy or be indifferent to this policy.     

Globalisation and the Politics of Persuasion and Coercion

This paper argues that an economic liberal discourse of globalisation has been pivotal to the policy‐making process in Australia over the past 15 or so years. Both Labor and Coalition Governments have aimed to restrict the electoral fall‐out from the process of restructuring by persuading Australians that the world economy has forced particular policy changes and made alternative economic policy choices unviable. Policy‐makers act to influence conceptions of the appropriate role and responsibilities of the state through persuasion – the rhetoric they speak – and coercion – the policies they make. The pervasiveness of globalisation rhetoric in the public sphere has been essential to the governing process as a complement to and buffer for the coercive impact of economic liberal policy changes. As Australia has shifted from a protectionist to an economically liberal policy structure, the effects of globalisation have become clearer. Liberalisation has intensified pressures from the world political economy and coerced changes in all areas of policy and the economy, as well as in public perceptions about the ‘limits of government’. Globalisation and economic liberalism as persuasion and coercion are the component parts of a restructured system of political and economic governance: a paradigmatic shift away from the economic protectionism of the first 80 years of Australian federalism.     

Achievements,experiences and challenges: The 30-year development of social policy in China

ABSTRACT

This paper provides a brief summary of China’s social policy in the last three decades by dividing it into two significant stages. It analyses the different policy orientations and concrete measurements in the two stages. According to the author, the changes and development of China’s social policy in the last three decades were, to a large extent, responses to the economic transition and the current socio-economic conditions. In the first stage, China’s social policy had to keep a low social welfare level to support the labour-intensive and foreign-trade oriented economic model in the 1990s. In the second stage, it had turned more to solve serious social problems and responded to the new economic and social challenges. After the fast development of almost two decades, China’s social policy is still facing big challenges. Several important issues for further social policy development are discussed in this paper.     

The effect of the rescue plans and the need for policies to increase economic growth

This paper evaluates the economic impact of discretionary fiscal and monetary actions taken in the United States during 2020 and 2021. The fiscal actions are The Coronavirus Aid, Relief, and Economic Security Act, or the “CARES” Act, passed in March 2020; The Consolidated Appropriations Act, passed in December 2020; and The American Rescue Plan Act, passed in March 2021. The paper focuses on the impact of the “economic impact payments” that underlie these fiscal actions. The paper also examines discretionary monetary policy actions taken during the same period. The overall implication is that there is a need to return to policies that increase economic growth and stability, including rules-based fiscal and monetary policy, rather than to continue with these one-time discretionary actions.     

Behavioural insights,nudge and the choice environment in obesity policy

As obesity constitutes a growing health concern over the world, it has also become an important part of public policy agendas. This paper critically analyses the development of the policy debate and measures around obesity in the UK. The paper contributes to the debate by challenging the current individualized nature of nudge policies as the most popular application of behavioural economics to policy. We argue that it may be possible to change the choice architecture of individuals through nudge, but the overall effectiveness of such policies would be limited because the broader social, economic and political architecture shaping individual choices is ignored. The case of the UK provides a good illustration where concrete policy measures are predominantly focused on choice despite growing recognition of the structural determinants of obesity, and the governments are thus able to avoid threatening free markets and existing economic interests. Whilst the recently introduced sugar tax constitutes a certain shift in policy, it clearly remains an exception within the whole policy package.     

Social impacts of the Global Financial Crisis on China and its policy initiatives

The Global Financial Crisis has brought eminent, negative economic and social impacts on China since late 2008, including a considerable decline in GDP growth and a rapid rise in unemployment. Drawing on the published literature and official statistical data, this paper examines the social consequences of the Global Financial Crisis in China, explores various policy initiatives taken by the Chinese government and assesses the effectiveness of these policy initiatives. It argues that the Global Financial Crisis has led to high levels of enterprise bankruptcy and job losses in China. Rural migrant workers and new university graduates are the two social groups most adversely affected. The economic stimulus package and expanded social programmes tend to be short term and economic oriented. Whether the policy initiatives have been effective in mitigating the social impacts of this crisis and correcting the structural imbalance of China's economy is unclear. The paper concludes by suggesting that a new policy approach should be taken to timely and effectively address the negative social impacts of the Global Financial Crisis on China, in particular by providing a more inclusive and comprehensive social safety net, prioritizing employment generation, and addressing housing deficits.     

Internalizing the public cost of obesity in Spain: Distributional effects on nutrient intake

Studies dealing with obesity have confronted it either from the fiscal policy or from economic cost perspective. There is the need to target fiscal policy goals at the economic cost that obesity imposes on society instead of simulating arbitrary taxes schemes. This paper analyzes the effectiveness of imposing a revenue-neutral fat tax in Spain addressed to internalize the public health expenditure associated to obesity. Results suggest that this tax policy led to an improvement in the diet quality, and decreased the consumption of saturated fatty acid, sodium, and cholesterol. From the welfare perspective, the tax is regressive across all household segments.     

Stimulating effects of intelligent policy on the performance of listed manufacturing companies in China

Based on the pilot projects of intelligent manufacturing of the Ministry of Industry and Information Technology of the People’s Republic of China and the annual data reported by listed companies, this paper studies the effect of China's intelligent policy on the performance of listed manufacturing companies by using the panel data of relevant enterprises from 2011 to 2017, as well as the mechanism of impact. Our empirical tests, using the difference-in-difference method, shows that intelligent policy can significantly improve the economic performance of manufacturing enterprises by guiding enterprises to optimize their intelligent management, strengthening investment in intelligent equipment and promoting collaborative manufacturing. Further empirical tests show that the impact of intelligent policy on economic performance is different in time. In the later selected pilot enterprises, the impact of intelligent policy on their economic performance is more significant; there is regional heterogeneity in the effects of intelligent policy: in regions with low intelligence, the positive impact of intelligent policy on the economic performance of manufacturing industry is more significant. Based on these conclusions, relevant intelligent policy suggestions are put forward.     

Economic crisis and social policy reform in Korea

The economic crisis that broke out in Korea in December 1997 has had a chilling impact on social development in the country. Today unemployment is the highest that Korea has experienced in the past thirty years. This paper aims to examine the impact of the economic crisis on social development and the role of public policy to mitigate the problems caused by the crisis. The economic crisis has hit vulnerable groups harder, increased the proportion of part-time and daily workers, and reversed the trend of steady improvement of income distribution. The economic crisis along with the trend of aging population, globalization, and competition calls for an expanded role of social policy, which the Korean government has neglected for a long time. The main targets of social policy reform in Korea include the expansion of government programs and safety nets for the unemployed and redesigning the national pension and health insurance scheme to provide adequate income security as well as to improve the system sustainability.     

Demise of the Developmental State? Implications for Social Policy Development in Hong Kong

This paper argues that Hong Kong is now at the crossroads of its journey towards social policy development. While economic development still seems to be the unwavering objective of the Hong Kong government, the demand for democracy and social development can no longer be ignored because of a strong civil society fostered by economic success. The current state of affairs provides a window of opportunity for the Hong Kong government to strengthen its legitimacy through the development of social policy and to promote social harmony through inclusivity in social welfare. The findings from the present empirical survey conducted by the Hong Kong Institute of Asia‐Pacific Studies (HKIAPS) in 2010 demonstrate that Hong Kong people identified social harmony as the main direction for social development, closely followed by economic development, and democracy and freedom. Respondents who chose social harmony as the main goal of social development were more likely to take a step back and find common ground when fighting for their own rights or the rights of society. This paper concludes that these findings reflect the crucial importance of taking social harmony into consideration in the social policy development process.     

Deprivation using satisfaction measures in Spain: An evaluation of unemployment benefits

The evaluation of social programs constitutes an important aspect in the modeling of economic policies. On the basis that the measurement of well being through subjective measures provides a broader perspective than through objective economic variables, this paper first identifies the determinants of deprivation in Spain, in monetary terms, and in non-monetary terms using satisfaction variables. In addition to establishing that the more unequal the income distribution within a group, the less income-satisfied is the individual, we find that unemployment is one of the main determinants of deprivation and satisfaction. Accordingly, we propose a reform of unemployment benefit policy that maintains individuals at the same utility level as when employed, rather than applying the current benefit system. Our policy conclusions reveal that the public budget dedicated to paying benefits to restore satisfaction levels, during the period 1994-1999, would have increased by €2,536,165.13 thousand on an average annually. It could be a desirable policy in good times but, since it increases public spending and thus public deficit, economic policy makers should decide whether it is adequate in rainy days.     

经济适用住房政策的经济学分析——以北京为例的探讨

经济适用住房制度在特定的历史阶段起到了不可替代的作用,但其“保障性质”在房地产日益市场化的进程中被弱化:(1)有效供给不足;(2)管理存在制度缺陷。从经济学角度分析了以北京为例的实证,本文提出:发展用于出租的经济适用住房;成立非营利的专门机构来负责经济适用住房的开发建设的政策建议。     

Policy transfer and role of policy entrepreneur in international aid: exploring international development cases of Korea and Vietnam

This paper looks at how an innovative policy comes to be transferred to another country and be successfully implemented. We explore three key dimensions (time, location, and people) in policy transfer studies using two cases of international aid (Saemaul Undong and e-Government projects). Utilizing a case study method, this paper upholds the predominant role of the policy entrepreneur over the environment (different time frame and different social, political, economic systems). The stakeholder analysis shows that policy entrepreneur’s role is critical in making policy transfer successful. In part, this argument is in line with previous “Advocacy Networks” studies, such as that of Keck and Sikkink (1998), highlighted the importance of policy entrepreneurs being able to navigate in the networks of international development. This paper aims to contribute to the literature by applying Dolowitz and Marsh’s policy transfer framework in the international aid context and calls for further empirical research employing the network analysis method.     

Unemployment and the Future of Social Policy

In the context of a seminar seeking to canvass public administration responses to the topic ‘A Generation Unemployed’ the paper canvasses the extent of hidden unemployment and where the burdens of unemployment are falling. Some of the future implications for social policy, including potential effects on social cohesion and the possible policy responses to that, and potential effects on economic dependency and likely policy implications are examined.     

The Ageing of Australia: Fiscal Sustainability,Intergenerational Equity and Inter‐temporal Fiscal Balance

Australian public policy makers are presently confronted with significant demographic changes that will profoundly affect the formulation of rational economic and social policy over the long term. This paper seeks to outline the potential impact of this demographic change and place it in historical perspective. The challenges posed by an ageing population for fiscal policy are explored and it is stressed that policy inertia will invite severe costs in future. It is argued that an appropriate policy stance should be developed in the context of a framework for inter‐temporal fiscal balance not only to focus on long‐run fiscal sustainability, but also to include considerations of intergenerational equity.     

THE RUSH TO REGULATE: THE SHIFT IN AUSTRALIA FROM THE RULE OF MARKETS TO THE RULE OF CAPITAL

There has been a significant shift in the momentum of national economic policy in Australia, from the market as an end in itself, towards a regulated policy agenda that asserts the social, cultural and economic rule of capital. This ‘new’ policy is what neo‐liberalism really involves. Arguments about ‘free markets’ and ‘economic rationalism’ fail to recognise the shift and are thus not germane to current policy analysis.     

China's social assistance policy: experiences and future directions

The Minimum Living Standard Guarantee System (MLSGS) forms the core of China's current social assistance policy, and special assistance programmes are used to supplement this policy. This paper scrutinizes the evolution and achievements of the social assistance policy, and analyses the challenges and problems that the policy faces. In this paper, we argue that the international trend of social assistance reforms, institutional background changes and the problems of social assistance in China require a developmental model to guide the future development of the social assistance policy. Therefore, social assistance policy should not only fulfil the basic living requirements of the underprivileged and enable underprivileged people to share the outcomes of economic and social development, but also should enable the underprivileged to develop human capital and participate in the labour market. To move towards developmental social assistance, this article proposes several relevant policy suggestions.