Abstract: This study utilizes the International Monetary Fund (IMF) Fiscal Rules Dataset focusing on four specific fiscal rules such as expenditure rule, revenue rule, budget balance rule, and debt rule and five main characteristics of each fiscal rule those are monitoring, enforcement, coverage, legal basis, and escape clause to construct the Fiscal Rule Index for nine countries in the Asia-Pacific region from 1996 to 2015. After constructing the fiscal rule index for each country, we utilize the Panel Generalized Method of Moments (Panel GMM) by using the constructed fiscal rule index to examine the effectiveness of fiscal rules in reducing procyclicality. Empirical results show that national fiscal rules have a significantly negative impact on procyclicality of government expenditure. Additionally, stricter fiscal rules combined with high government effectiveness are effective in reducing procyclicality of government expenditure. Results of this study indicate that for nine Asia-Pacific countries, policymakers’ use of fiscal rules and government effectiveness to reducing procyclicality of fiscal policy are effective.
Abstract: In the paper it is questioned whether effective state
social policy provides happiness and social progress. For this purpose
selected correlations between Human Development Index (HDI),
share of public social expenditures in GDP, the Happy Planet Index
(HPI), GDP per capita, and Government Effectiveness are examined
and the results are graphically presented. It is shown how a
government can affect well-being and happiness in different countries
of modern world. Also, it is tested the hypothesis about existence of a
certain optimum of well-being and public social expenditures, which
affect direction of social progress. It is concluded that efficient social
policy and wealth are not the only factors determining human
happiness.