The document provides an overview of fiscal policy from both conventional and Islamic perspectives. In the conventional view, fiscal policy uses tools like taxes and government spending to achieve economic goals like growth and stability. It discusses Keynesian, classical, and supply-side economics approaches. In the Islamic view, fiscal policy aims for both material and spiritual prosperity. It examines early Islamic practices like zakat and baitulmal that were used for economic recovery and welfare. The role of government is also to ensure people are protected from weaknesses and greed according to Islamic teachings.
The document summarizes Pakistan's fiscal policy and economic performance in recent years. It notes that Pakistan experienced serious macroeconomic imbalances in FY2007-08. To address this, the government passed a Fiscal Responsibility and Debt Limitation Act in 2005 requiring adherence to fiscal targets. The document reviews Pakistan's fiscal performance in FY2007-08 and projections for FY2008-09, including projections that the fiscal deficit will decline to 4.2% of GDP in 2008-09 from 7.4% in 2007-08. It also discusses trends in revenues, expenditures, debt levels, and the government's efforts to reform taxation policies to generate more sustainable revenues.
Fiscal policy uses government spending and taxation to influence the economy. It aims to achieve economic stability without inflation or deflation. The government collects revenues through taxes, fees, fines, and loans, then spends money on productive investments like infrastructure and non-productive services like education and health. The budget shows estimated receipts and expenditures. Fiscal policy can be neutral, expansionary, or contractionary depending on whether spending equals, exceeds, or is less than tax revenue. While fiscal policy aims to evenly distribute wealth and resources, limitations include inadequate data and delayed decision-making.
Pakistan faces many challenges at the beginning of the second decade of the 21stcentury:
• Decades-long struggle with macroeconomic stabilisation arising from unsustainable fiscal policies
• Pressure of demography
• Legacy of economic distortions
• Battering from external events, including earthquakes, floods and a continuing
longstanding low intensity conflict
• A large and loss-making public sector that impedes market development
• Low and declining productivity
• Heightened expectations of the population for a better life from a democratic
government.
Our growth experience of the last four decades has been volatile annual growth and
declining trend in long run growth patterns. In addition, productivity growth (a
measure of efficiency) has been low in comparison to our comparators. For the last
four years per-capita incomes have not increased in real terms while double-digit
inflation has prevailed.
- A liquidity trap is a situation where the short-term nominal interest rate is zero, meaning that increasing the money supply has no effect on output or prices according to traditional Keynesian theory.
- Modern theory argues that monetary policy can still be effective even at zero interest rates by managing expectations about future money supply levels when interest rates rise above zero again.
- For monetary policy to be effective in a liquidity trap, central banks must commit to maintaining lower future interest rates once deflationary shocks subside in order to stimulate expectations about future money supply levels and interest rates.
The document discusses fiscal deficit, which is defined as the excess of total government expenditure over total receipts, excluding borrowings. It lists some key causes of fiscal deficit such as excessive government borrowing, tax avoidance, inequality, and subsidies. It also discusses how deficits are met through borrowing and deficit financing, and provides India's current fiscal position with a deficit of Rs. 4.11 trillion until October 2016. The consequences of high deficits are listed as debt traps, inflation, foreign dependence, and reduced social spending. Measures to reduce deficits mentioned include disinvestment, tax reforms, expenditure cuts, and curbing black money.
The document discusses fiscal policy and taxation policy in Bangladesh. It provides details on:
1) Bangladesh's fiscal policy is expansionary, causing large budget deficits that the government funds through borrowing. The main reasons for deficits are tax avoidance and corruption.
2) The taxation system in Bangladesh relies heavily on indirect taxes like import duties. Direct taxes only make up 19% of total taxes.
3) The government spends most on subsidies, education, interest payments, social services, and defense. Infrastructure like transportation and energy are also priorities.
Monetary policy aims to regulate money supply and interest rates to control inflation and stabilize currency. Fiscal policy uses government spending and taxation to influence the economy. Both policies aim for low inflation, employment, exchange rate stability, and growth. Monetary policy maintains money supply balance while fiscal policy stimulates or regulates economic activity. These policies are most effective when coordinated but political pressures can undermine economic objectives. The best policy combination ensures sustained growth and employment without inflation, but external shocks pose challenges, especially for developing economies like Pakistan.
The document analyzes the risk and return of Pakistan's bond market from 2005 to 2015. It aims to analyze the factors affecting returns in the bond market. The researchers conducted interviews and literature reviews on bond markets. They identified key factors like risk, interest rates, fiscal deficit, exchange rates and GDP that could impact bond yields. Regression analysis was performed on Pakistan Investment Bond data from 3, 5 and 10 year bonds against the independent variables. The results found positive relationships between bond yields and risk, interest rates, and fiscal deficit. Exchange rates and GDP had negative relationships with bond yields.
The document summarizes Pakistan's fiscal policy and economic performance in recent years. It notes that Pakistan experienced serious macroeconomic imbalances in FY2007-08. To address this, the government passed a Fiscal Responsibility and Debt Limitation Act in 2005 requiring adherence to fiscal targets. The document reviews Pakistan's fiscal performance in FY2007-08 and projections for FY2008-09, including projections that the fiscal deficit will decline to 4.2% of GDP in 2008-09 from 7.4% in 2007-08. It also discusses trends in revenues, expenditures, debt levels, and the government's efforts to reform taxation policies to generate more sustainable revenues.
Fiscal policy uses government spending and taxation to influence the economy. It aims to achieve economic stability without inflation or deflation. The government collects revenues through taxes, fees, fines, and loans, then spends money on productive investments like infrastructure and non-productive services like education and health. The budget shows estimated receipts and expenditures. Fiscal policy can be neutral, expansionary, or contractionary depending on whether spending equals, exceeds, or is less than tax revenue. While fiscal policy aims to evenly distribute wealth and resources, limitations include inadequate data and delayed decision-making.
Pakistan faces many challenges at the beginning of the second decade of the 21stcentury:
• Decades-long struggle with macroeconomic stabilisation arising from unsustainable fiscal policies
• Pressure of demography
• Legacy of economic distortions
• Battering from external events, including earthquakes, floods and a continuing
longstanding low intensity conflict
• A large and loss-making public sector that impedes market development
• Low and declining productivity
• Heightened expectations of the population for a better life from a democratic
government.
Our growth experience of the last four decades has been volatile annual growth and
declining trend in long run growth patterns. In addition, productivity growth (a
measure of efficiency) has been low in comparison to our comparators. For the last
four years per-capita incomes have not increased in real terms while double-digit
inflation has prevailed.
- A liquidity trap is a situation where the short-term nominal interest rate is zero, meaning that increasing the money supply has no effect on output or prices according to traditional Keynesian theory.
- Modern theory argues that monetary policy can still be effective even at zero interest rates by managing expectations about future money supply levels when interest rates rise above zero again.
- For monetary policy to be effective in a liquidity trap, central banks must commit to maintaining lower future interest rates once deflationary shocks subside in order to stimulate expectations about future money supply levels and interest rates.
The document discusses fiscal deficit, which is defined as the excess of total government expenditure over total receipts, excluding borrowings. It lists some key causes of fiscal deficit such as excessive government borrowing, tax avoidance, inequality, and subsidies. It also discusses how deficits are met through borrowing and deficit financing, and provides India's current fiscal position with a deficit of Rs. 4.11 trillion until October 2016. The consequences of high deficits are listed as debt traps, inflation, foreign dependence, and reduced social spending. Measures to reduce deficits mentioned include disinvestment, tax reforms, expenditure cuts, and curbing black money.
The document discusses fiscal policy and taxation policy in Bangladesh. It provides details on:
1) Bangladesh's fiscal policy is expansionary, causing large budget deficits that the government funds through borrowing. The main reasons for deficits are tax avoidance and corruption.
2) The taxation system in Bangladesh relies heavily on indirect taxes like import duties. Direct taxes only make up 19% of total taxes.
3) The government spends most on subsidies, education, interest payments, social services, and defense. Infrastructure like transportation and energy are also priorities.
Monetary policy aims to regulate money supply and interest rates to control inflation and stabilize currency. Fiscal policy uses government spending and taxation to influence the economy. Both policies aim for low inflation, employment, exchange rate stability, and growth. Monetary policy maintains money supply balance while fiscal policy stimulates or regulates economic activity. These policies are most effective when coordinated but political pressures can undermine economic objectives. The best policy combination ensures sustained growth and employment without inflation, but external shocks pose challenges, especially for developing economies like Pakistan.
The document analyzes the risk and return of Pakistan's bond market from 2005 to 2015. It aims to analyze the factors affecting returns in the bond market. The researchers conducted interviews and literature reviews on bond markets. They identified key factors like risk, interest rates, fiscal deficit, exchange rates and GDP that could impact bond yields. Regression analysis was performed on Pakistan Investment Bond data from 3, 5 and 10 year bonds against the independent variables. The results found positive relationships between bond yields and risk, interest rates, and fiscal deficit. Exchange rates and GDP had negative relationships with bond yields.
Fiscal policy refers to a government's taxing and spending policies and is used to influence macroeconomic conditions. The key instruments of fiscal policy are public expenditure, taxation, and public borrowing. The main objectives of fiscal policy are to mobilize resources, efficiently allocate financial resources, reduce income inequality, expand employment, maintain price stability and control inflation, and correct imbalances in the balance of payments.
The National Finance Commission award determines the annual distribution of financial resources from the federal government to Pakistan's provinces. It pools certain taxes collected in each province and redistributes them to the provinces according to a formula that considers factors like population, poverty levels, revenue generation, and population density. There has been ongoing debate around which taxes should be included in the pool and the specific distribution formula. The 18th amendment to Pakistan's constitution aimed to increase provincial autonomy and shift power away from the federal presidency by deleting the concurrent legislative list and securing greater provincial shares of federal resources and services.
Monetary policy involves controlling the supply of money in an economy to achieve objectives like growth and stability. It can be expansionary, increasing the money supply to reduce unemployment during recessions, or contractionary, decreasing the money supply to reduce inflation. Central banks use tools like interest rates, cash reserve ratios, and statutory liquidity ratios to implement monetary policy. In India, the Reserve Bank of India uses tools like the bank rate, cash reserve ratio, statutory liquidity ratio, repo rate, and reverse repo rate to conduct monetary policy. At its most recent meeting, the RBI kept some rates unchanged but increased the repo and reverse repo rates to curb inflation risks while supporting moderate growth.
The document compares the monetary and Keynesian approaches to economic stability. The monetary (or monetarist) approach is based on the role of money in stabilizing aggregate demand, and believes that limiting government intervention and controlling the money supply are key. The Keynesian approach focuses on the role of government spending in stabilizing aggregate demand, and does not restrict government intervention. It believes fiscal policy tools like tax rates and government spending are most important for achieving economic stability, especially during downturns when suggested solutions include increasing various types of spending.
This document provides an overview of fiscal policy, including:
1) Fiscal policy involves a government adjusting its spending levels and tax rates to influence the economy. It is controlled by the government and includes tools like taxes, government spending, and deficit financing.
2) There are two main types of fiscal policy - expansionary and contractionary. Expansionary policy involves government spending exceeding tax revenue through methods like lowering taxes or raising spending. Contractionary policy occurs when spending is lower than tax revenue.
3) Fiscal policy aims to impact unemployment, inflation, and interest rates. However, it faces criticisms like time lags in taking effect, potential crowding out of private sector activity, and inefficient government
Theories of income output and employmentakanksha91
This document presents theories of income, output, and employment from a Keynesian perspective. It introduces John Maynard Keynes and his work, including his general theory. It discusses Keynesian beliefs that markets will not automatically lead to full employment and that the level of output and national income can adjust. The main Keynesian theories are outlined, including the labor market, money market, multiplier effect, and inflation theory. The document then explains Keynes' theory of income, output, and employment determination through the intersection of aggregate demand and supply curves. It concludes that in the short run, aggregate demand determines employment, output, and income levels according to Keynes.
This document compares and contrasts different economic systems including capitalism, socialism, communism, and the Islamic economic system. It outlines key principles of each system such as private ownership, profit motive, and egalitarianism. It also discusses flaws like lack of moral limitations in capitalism and loss of individual incentive in socialism. The Islamic system focuses on distribution of wealth, guaranteeing basic needs, and prohibiting interest while encouraging investment. The document recommends positive economics to analyze actual behavior and normative economics to prescribe how behavior should be.
I, Mahboob Alam a student of Man Urdu university I studies hereby declare that the Presentation entitled “Economic Planning”. Presentation at Man Urdu university was carried out by me in the partial fulfilment of MBA program.
The document summarizes Pakistan's budget cycle process. It begins with an introduction to the importance of the national budget. It then outlines the key steps in Pakistan's budget cycle, which include setting budget priorities and policies, preparation of budget estimates, authorization by the national assembly, execution by spending ministries, and periodic review. The document also describes Pakistan's Medium Term Budgetary Framework process, which involves line ministries preparing three-year expenditure estimates within ceilings set by the Ministry of Finance.
This document summarizes and compares classical and Keynesian economics. Classical economics is centered around self-regulating markets that operate at full employment, while Keynesian economics recognizes markets do not always self-adjust and the economy can operate below full employment. Key differences include classical economics believing free markets are always stable versus Keynesian thinking they are unstable. The document also outlines Keynesian principles like markets clearing slowly and government intervention being desirable to stabilize the business cycle through fiscal and monetary policies.
Fiscal policy uses government spending and taxation to influence the economy. It aims to promote growth and reduce poverty. There are two types of fiscal policy - automatic stabilizers and discretionary policy. Automatic stabilizers like taxes and unemployment insurance automatically adjust to economic conditions. Discretionary policy deliberately manipulates spending and taxes but it faces implementation lags. Fiscal policy objectives include lifting economies out of depression, controlling inflation and business cycles, maintaining balance of payments equilibrium, and promoting economic growth.
The document discusses six debates around macroeconomic policy:
1) Whether policymakers should try to stabilize the economy through monetary and fiscal policy interventions.
2) Whether the government should fight recessions through spending hikes rather than tax cuts.
3) Whether monetary policy should be rules-based rather than discretionary.
4) Whether central banks should aim for zero inflation.
5) Whether governments should balance their budgets.
6) Whether tax laws should be reformed to encourage more saving.
Methodology of Econometrics / Hypothesis Testing Sakthivel R
This document discusses key concepts in hypothesis testing in econometrics, including:
1) Hypotheses can be simple, specifying all parameters, or composite, specifying some parameters.
2) The null hypothesis is the initial hypothesis being tested, often of no difference. The alternative hypothesis is complementary to the null.
3) Data can be collected through sampling, experiments, or other sources and is either primary or secondary.
4) Hypothesis testing involves statistical procedures to decide whether to accept or reject the null hypothesis. If accepted, the theory can be used for forecasting, prediction, or policy recommendations.
Agricultural Pricing Policy of PakistanUltraspectra
About Us:
UltraSpectra is a full-service online company dedicated to providing the services of internet marketing and
IT solutions to professionals and businesses looking to fully leverage the internet.
http://www.ultraspectra.com
http://www.ultraspectra.net
Join Our Network:
facebook.com/ultraspectra
twitter.com/ultraspectra
youtube.com/user/ultraspecra
Fiscal policy involves the government raising revenue through taxation and determining spending levels to address economic issues like excess or deficient demand. The key instruments of fiscal policy are taxes, government spending, and deficit financing. In times of deficient demand, fiscal steps include decreasing taxes, increasing spending, and increasing the deficit. The opposite measures are taken during periods of excess demand. Fiscal policy aims to promote capital formation, economic development, stability, and address issues like inflation and inequality. Government budgets project revenue, expenditure, deficits, and surpluses on an annual basis.
Chapter 7 - inflation ,unemployment and underemployment for BBAginish9841502661
This document defines various types of inflation including low inflation, galloping inflation, and hyperinflation. It also discusses different measures used to calculate inflation rates such as the Consumer Price Index (CPI) and Wholesale Price Index (WPI). Finally, it outlines several causes of inflation including demand-pull factors related to increases in the money supply according to the Quantity Theory of Money, and cost-push factors like increases in wages or costs of raw materials.
This document presents Pakistan's new Framework for Economic Growth as approved by the National Economic Council. It aims to accelerate economic growth to over 7% annually through reforms that encourage competitive markets, address long-term structural issues, and define the government's role in regulation and provision of infrastructure and security. It argues that the traditional growth model of public investment and government involvement in the economy has not yielded high enough growth to address poverty and job creation needs, given Pakistan's growing population. The new framework seeks growth through private sector development, reduced economic distortions, and improved productivity and innovation to sustain higher living standards over the long run.
Lecture slides for an undergraduate course on Basic Macroeconomics that I taught in the Fall of 2007.
This lecture goes over the difference between real and nominal GDP.
This document appears to be a project report submitted by students to their faculty member on the topic of Indian fiscal policy and changing tax structures. It includes an acknowledgment thanking the faculty member for the project assignment. The index lists various sections of the report, including introductions to fiscal policy, instruments of fiscal policy like the budget and taxation, discretionary versus non-discretionary fiscal policy, effectiveness of fiscal policy, and fiscal deficits over the past 12 years. The introduction provides an overview of the role and objectives of fiscal policy in developing economies.
Fiscal policy is the means by which governments adjust taxes and spending to influence economic growth and stability. This document discusses several aspects of fiscal policy, including its objectives like mobilizing resources, accelerating growth, and providing economic infrastructure. It also discusses discretionary fiscal policy where governments deliberately manipulate taxes and spending to achieve goals like employment and price stability. The document provides definitions of fiscal policy, examples of expansionary and contractionary fiscal policy, and questions related to the topic.
Fiscal policy refers to a government's taxing and spending policies and is used to influence macroeconomic conditions. The key instruments of fiscal policy are public expenditure, taxation, and public borrowing. The main objectives of fiscal policy are to mobilize resources, efficiently allocate financial resources, reduce income inequality, expand employment, maintain price stability and control inflation, and correct imbalances in the balance of payments.
The National Finance Commission award determines the annual distribution of financial resources from the federal government to Pakistan's provinces. It pools certain taxes collected in each province and redistributes them to the provinces according to a formula that considers factors like population, poverty levels, revenue generation, and population density. There has been ongoing debate around which taxes should be included in the pool and the specific distribution formula. The 18th amendment to Pakistan's constitution aimed to increase provincial autonomy and shift power away from the federal presidency by deleting the concurrent legislative list and securing greater provincial shares of federal resources and services.
Monetary policy involves controlling the supply of money in an economy to achieve objectives like growth and stability. It can be expansionary, increasing the money supply to reduce unemployment during recessions, or contractionary, decreasing the money supply to reduce inflation. Central banks use tools like interest rates, cash reserve ratios, and statutory liquidity ratios to implement monetary policy. In India, the Reserve Bank of India uses tools like the bank rate, cash reserve ratio, statutory liquidity ratio, repo rate, and reverse repo rate to conduct monetary policy. At its most recent meeting, the RBI kept some rates unchanged but increased the repo and reverse repo rates to curb inflation risks while supporting moderate growth.
The document compares the monetary and Keynesian approaches to economic stability. The monetary (or monetarist) approach is based on the role of money in stabilizing aggregate demand, and believes that limiting government intervention and controlling the money supply are key. The Keynesian approach focuses on the role of government spending in stabilizing aggregate demand, and does not restrict government intervention. It believes fiscal policy tools like tax rates and government spending are most important for achieving economic stability, especially during downturns when suggested solutions include increasing various types of spending.
This document provides an overview of fiscal policy, including:
1) Fiscal policy involves a government adjusting its spending levels and tax rates to influence the economy. It is controlled by the government and includes tools like taxes, government spending, and deficit financing.
2) There are two main types of fiscal policy - expansionary and contractionary. Expansionary policy involves government spending exceeding tax revenue through methods like lowering taxes or raising spending. Contractionary policy occurs when spending is lower than tax revenue.
3) Fiscal policy aims to impact unemployment, inflation, and interest rates. However, it faces criticisms like time lags in taking effect, potential crowding out of private sector activity, and inefficient government
Theories of income output and employmentakanksha91
This document presents theories of income, output, and employment from a Keynesian perspective. It introduces John Maynard Keynes and his work, including his general theory. It discusses Keynesian beliefs that markets will not automatically lead to full employment and that the level of output and national income can adjust. The main Keynesian theories are outlined, including the labor market, money market, multiplier effect, and inflation theory. The document then explains Keynes' theory of income, output, and employment determination through the intersection of aggregate demand and supply curves. It concludes that in the short run, aggregate demand determines employment, output, and income levels according to Keynes.
This document compares and contrasts different economic systems including capitalism, socialism, communism, and the Islamic economic system. It outlines key principles of each system such as private ownership, profit motive, and egalitarianism. It also discusses flaws like lack of moral limitations in capitalism and loss of individual incentive in socialism. The Islamic system focuses on distribution of wealth, guaranteeing basic needs, and prohibiting interest while encouraging investment. The document recommends positive economics to analyze actual behavior and normative economics to prescribe how behavior should be.
I, Mahboob Alam a student of Man Urdu university I studies hereby declare that the Presentation entitled “Economic Planning”. Presentation at Man Urdu university was carried out by me in the partial fulfilment of MBA program.
The document summarizes Pakistan's budget cycle process. It begins with an introduction to the importance of the national budget. It then outlines the key steps in Pakistan's budget cycle, which include setting budget priorities and policies, preparation of budget estimates, authorization by the national assembly, execution by spending ministries, and periodic review. The document also describes Pakistan's Medium Term Budgetary Framework process, which involves line ministries preparing three-year expenditure estimates within ceilings set by the Ministry of Finance.
This document summarizes and compares classical and Keynesian economics. Classical economics is centered around self-regulating markets that operate at full employment, while Keynesian economics recognizes markets do not always self-adjust and the economy can operate below full employment. Key differences include classical economics believing free markets are always stable versus Keynesian thinking they are unstable. The document also outlines Keynesian principles like markets clearing slowly and government intervention being desirable to stabilize the business cycle through fiscal and monetary policies.
Fiscal policy uses government spending and taxation to influence the economy. It aims to promote growth and reduce poverty. There are two types of fiscal policy - automatic stabilizers and discretionary policy. Automatic stabilizers like taxes and unemployment insurance automatically adjust to economic conditions. Discretionary policy deliberately manipulates spending and taxes but it faces implementation lags. Fiscal policy objectives include lifting economies out of depression, controlling inflation and business cycles, maintaining balance of payments equilibrium, and promoting economic growth.
The document discusses six debates around macroeconomic policy:
1) Whether policymakers should try to stabilize the economy through monetary and fiscal policy interventions.
2) Whether the government should fight recessions through spending hikes rather than tax cuts.
3) Whether monetary policy should be rules-based rather than discretionary.
4) Whether central banks should aim for zero inflation.
5) Whether governments should balance their budgets.
6) Whether tax laws should be reformed to encourage more saving.
Methodology of Econometrics / Hypothesis Testing Sakthivel R
This document discusses key concepts in hypothesis testing in econometrics, including:
1) Hypotheses can be simple, specifying all parameters, or composite, specifying some parameters.
2) The null hypothesis is the initial hypothesis being tested, often of no difference. The alternative hypothesis is complementary to the null.
3) Data can be collected through sampling, experiments, or other sources and is either primary or secondary.
4) Hypothesis testing involves statistical procedures to decide whether to accept or reject the null hypothesis. If accepted, the theory can be used for forecasting, prediction, or policy recommendations.
Agricultural Pricing Policy of PakistanUltraspectra
About Us:
UltraSpectra is a full-service online company dedicated to providing the services of internet marketing and
IT solutions to professionals and businesses looking to fully leverage the internet.
http://www.ultraspectra.com
http://www.ultraspectra.net
Join Our Network:
facebook.com/ultraspectra
twitter.com/ultraspectra
youtube.com/user/ultraspecra
Fiscal policy involves the government raising revenue through taxation and determining spending levels to address economic issues like excess or deficient demand. The key instruments of fiscal policy are taxes, government spending, and deficit financing. In times of deficient demand, fiscal steps include decreasing taxes, increasing spending, and increasing the deficit. The opposite measures are taken during periods of excess demand. Fiscal policy aims to promote capital formation, economic development, stability, and address issues like inflation and inequality. Government budgets project revenue, expenditure, deficits, and surpluses on an annual basis.
Chapter 7 - inflation ,unemployment and underemployment for BBAginish9841502661
This document defines various types of inflation including low inflation, galloping inflation, and hyperinflation. It also discusses different measures used to calculate inflation rates such as the Consumer Price Index (CPI) and Wholesale Price Index (WPI). Finally, it outlines several causes of inflation including demand-pull factors related to increases in the money supply according to the Quantity Theory of Money, and cost-push factors like increases in wages or costs of raw materials.
This document presents Pakistan's new Framework for Economic Growth as approved by the National Economic Council. It aims to accelerate economic growth to over 7% annually through reforms that encourage competitive markets, address long-term structural issues, and define the government's role in regulation and provision of infrastructure and security. It argues that the traditional growth model of public investment and government involvement in the economy has not yielded high enough growth to address poverty and job creation needs, given Pakistan's growing population. The new framework seeks growth through private sector development, reduced economic distortions, and improved productivity and innovation to sustain higher living standards over the long run.
Lecture slides for an undergraduate course on Basic Macroeconomics that I taught in the Fall of 2007.
This lecture goes over the difference between real and nominal GDP.
This document appears to be a project report submitted by students to their faculty member on the topic of Indian fiscal policy and changing tax structures. It includes an acknowledgment thanking the faculty member for the project assignment. The index lists various sections of the report, including introductions to fiscal policy, instruments of fiscal policy like the budget and taxation, discretionary versus non-discretionary fiscal policy, effectiveness of fiscal policy, and fiscal deficits over the past 12 years. The introduction provides an overview of the role and objectives of fiscal policy in developing economies.
Fiscal policy is the means by which governments adjust taxes and spending to influence economic growth and stability. This document discusses several aspects of fiscal policy, including its objectives like mobilizing resources, accelerating growth, and providing economic infrastructure. It also discusses discretionary fiscal policy where governments deliberately manipulate taxes and spending to achieve goals like employment and price stability. The document provides definitions of fiscal policy, examples of expansionary and contractionary fiscal policy, and questions related to the topic.
Fiscal policy is the means by which governments adjust taxes and spending to influence economic growth and stability. This document discusses several aspects of fiscal policy, including its objectives like mobilizing resources, accelerating growth, and providing economic infrastructure. It also discusses discretionary fiscal policy where governments deliberately manipulate taxes and spending to achieve goals like employment and price stability. The document provides definitions of fiscal policy, examples of expansionary and contractionary fiscal policies, and questions related to the topic.
Fiscal policy involves manipulating government spending and taxation to influence macroeconomic variables like GDP and unemployment. It can be expansionary by cutting taxes and increasing spending, or contractionary by raising taxes and reducing spending. While fiscal policy aims to stabilize the economy, it faces limitations like time lags between policy changes and economic impacts, difficulty in fine-tuning the economy, and issues financing large budget deficits from expansionary policies.
Fiscal policy uses government spending and taxation to influence economic activity. It aims to achieve full employment and price stability. The government establishes fiscal policy through the annual federal budget. Expansionary fiscal policy stimulates the economy through tax cuts and spending increases, while contractionary policy slows growth via tax hikes and spending cuts. However, fiscal policy faces limitations as its effects are difficult to predict and coordinate. Large, sustained deficits lead to rising national debt levels, which can crowd out private investment and increase interest payments over time.
Fiscal policy aims to maintain full employment, economic stability, and steady growth through tax rates and government spending. In developing economies specifically, fiscal policy seeks to accelerate capital formation and investment, encourage employment, control inflation, promote equitable income distribution, and achieve balanced economic development. It directs resources toward socially desirable investment and expands both public and private sector investment.
1) The document discusses the history and evolution of monetary and fiscal policy. It explains how views on these policies have changed over time, from a belief that economies could function without government interference, to greater emphasis on these policies following the Great Depression.
2) It describes how monetary policy involves managing money supply and credit, while fiscal policy involves manipulating taxes, government spending, and borrowing. Both aim to stabilize prices and maintain employment levels.
3) The challenges of implementing effective monetary and fiscal policies are also examined, such as disagreements around appropriate policy tightness and lags in policy impacts. Historical examples from various countries are provided.
This document discusses fiscal policy, which refers to the government's use of spending and taxation to influence the economy. Fiscal policy works by increasing or decreasing government spending and tax levels, based on theories of British economist John Maynard Keynes. It is used alongside monetary policy to direct a country's economic goals. The document provides examples of how fiscal policy can be used in times of recession by lowering taxes to fuel growth or increasing government spending to create jobs. It also notes that fiscal policy affects different groups disproportionately and must be carefully monitored.
This document discusses fiscal policy, which refers to the government's use of spending and taxation to influence the economy. Fiscal policy works by increasing or decreasing government spending and tax levels, based on theories of British economist John Maynard Keynes. It is used alongside monetary policy to direct a country's economic goals. The document provides examples of how fiscal policy can be used in times of recession by lowering taxes to fuel growth or increasing government spending to create jobs. It also notes that fiscal policy affects different groups disproportionately and must be carefully monitored.
Fiscal policy involves a government's revenue collection and spending behaviors and techniques to influence economic growth and development. Key techniques of fiscal policy include taxation, government expenditure, deficit financing, and public debt. Fiscal policy stances can be neutral, expansionary, or contractionary depending on whether government spending exceeds, equals, or is less than tax revenue. While expansionary fiscal policy can fight economic recession by increasing aggregate demand, contractionary policy can curb inflation. However, the effectiveness of fiscal policy in reality faces limitations such as rising inflation, failure to reduce black money, and increasing unemployment despite government spending.
Fiscal policy involves a government adjusting its spending and tax rates to influence economic goals like unemployment and inflation. It works alongside monetary policy to steer a country's economy. Fiscal policy is based on John Maynard Keynes' theory that government spending and tax changes impact productivity, inflation, employment, and currency value. While useful for stimulating a stagnant economy, excessive fiscal changes can also cause issues like high inflation or unemployment. Governments must balance these risks to stabilize economic cycles.
The document discusses inflation in India and fiscal tools to control it. It provides definitions of inflation and discusses various causes of inflation including demand-pull inflation and cost-push inflation. It also outlines different types of inflation and discusses the inflation rate in India. The document then examines the role of fiscal policy tools like reducing public expenditure, increasing tax revenues, and increasing the supply of goods and services as ways for the government to control inflation. However, it notes that the scope to significantly reduce public expenditure or withdraw purchasing power through taxation is limited for developing countries. The most effective fiscal policy is focused on increasing incentives for private investment and production to ultimately increase the supply of goods.
The document discusses expansionary fiscal policy, which involves reducing taxes and increasing government spending to boost demand in the economy. This raises disposable income through tax cuts and increases consumption. Tax reductions can help stimulate the economy during a recession by increasing GDP. Expansionary fiscal policy works to increase aggregate demand through government spending or tax reductions, boosting output and employment.
Fiscal policy refers to the government's taxing and spending policies and their impact on the economy. Fiscal policy aims to achieve full employment, reduce inequality, maintain price stability, and support economic development and infrastructure growth. It involves manipulating factors like taxes, subsidies, and government borrowing to influence aggregate demand. When the economy is in recession, the government will typically increase spending and cut taxes to stimulate growth.
Asignment arifa-fiscal policy and its importanceArifa Dars
This document is a student assignment submitted by Arifa Dars to her professor Vishnu Mal Parmar on the topic of fiscal policy and its importance for the Pakistani economy. It contains the following key points:
1. It defines fiscal policy as the use of government spending and taxation to influence the economy, focusing on its effects on overall output and aggregate demand.
2. It discusses the microeconomic and macroeconomic objectives of fiscal policy in Pakistan, including income distribution, social services, investment in public goods, and maintaining stable prices, output, and the balance of payments.
3. It examines the functions of fiscal policy including allocation of funds, distribution of funds, stabilization of economic growth, and development through
objectives of fiscal policy
,
to accelerate the rate of economic growth:
,
optimum allocation of resources
,
generally following are the objectives of a fiscal
,
equitable distribution of income and wealth:
,
full employment
,
to encourage investment
,
economic stability:
This document summarizes the trajectory of India's fiscal policy over several decades. It discusses how fiscal policy evolved from a conservative approach focused on controlling deficits during early post-independence planning, to economic liberalization in 1991 that reformed the tax system. While deficits were brought under control, public debt increased in the 1980s. After the 2008 global financial crisis, India responded with countercyclical fiscal measures, and its economy is now witnessing a return to fiscal consolidation and prudence. Looking ahead, further tax reforms and better targeted social spending will be priorities.
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1. FISCAL POLICY: ISLAMIC VERSUS CONVENTIONAL
PREPARED BY:
ROSWAHIDA BINTI AHMAD SHUBELI 07BB03001
PREPARED FOR:
MISS HAFIZAH BINTI ABDUL RAHIM
BMES 7003
COMPARATIVE STUDY OF ISLAMIC ECONOMICS
13th August 2010
1
2. CONTENT
1. ACKNOWLEDGEMENT 1
2. INTRODUCTION 2
2.1 HOW FISCAL POLICY BEGAN. 3
2.2 THE ROLE OF THE GOVERNMENT 4
IN ISLAM
3. FISCAL POLICY
3.1 IN CONVENTIONAL PERSPECTIVE 5
3.1.1 TYPE OF FISCAL POLICY 5
3.1.2 EFFECT OF FISCAL POLICY 7
WITH KEYNESIAN TEORY
3.1.3 EFFECT OF FISCAL POLICY WITH AD-AS 8
2
3. 3.2 IN ISLAM PERSPECTIVE 9
3.2.1 PROPHET YUSUF FISCAL PLANNING 9
3.2.2 SOURCES OF REVENUES IN 11
EARLY ISLAMIC PERIOD
3.2.3 ZAKAT EXPENDITURE 12
3.2.4 MOBILIZING BAITULMAL‟S ASSETS 12
FOR ECONOMY RECOVERY
4. CONCLUSION 15
5. BIBLIOGRAFY 16
3
4. 1. ACKNOWLEDGEMENTS
All praise to Allah (swt) the most Gracious and most Merciful, by whose grace and blessing to
Miss Hafizah binti Abdul Rahim, our lecture of subject Comparative Study of Islamic Economic,
due to the opportunities to us in discussing about fiscal policy in Islamic and conventional.
I also thankfully to our college (Selangor International Islamic University College) for allowed
us to learn and have the knowledge in this subject matter. And to all the Librarians of our
university college in their co-operations helping us regarding some journal and books about
fiscal policy.
I also take this opportunity, while relying on the instruction of the Prophet to the effect that:
“whoever does not thank people does not thank Allah”
I indebted to this discussion from online journal, articles and books as supporting to the idea and
get all the information from it while writing the assignment.
I have given all our effort to this paper work and we hope that this paper work will provide
lessons and information which will complete the need of this assignment and also answering all
the question of fiscal policy between Islamic and conventional.
May Allah (Almighty) reward them all for their contribution and consider our efforts for his sake
only.
4
5. 2. Introduction
Fiscal policy is a policy to change tax and government spending to protect economy
stabilization.
Main purpose of fiscal policy are to:
a) To achieve economic growth continuously without inflation and unemployment.
b) To achieve equality in income distribution with to draw nearer the gap between rich
and poor people.
Type of fiscal policy are:
a) Automatic stabilizers
b) Discretionary fiscal policy
There are two approaches to analyze fiscal policy.
First, about the economics law governing the economy in which these macroeconomics policies
are pursued were made. It can be in two way:
a) An economy governed by Syariah principles
b) An economy governed by civil or western law while some aspects of Shariah principles
are observed in selected economic activities.
The first approaches has been a natural choice.
Second, much more on research and investigation as it means extracting information and
knowledge from real economic life . In Malaysia for example, government have power to control
zakat collection and disbursement, which also control waqaf and faraid management.
5
6. 2.1 HOW FISCAL POLICY BEGAN.
Classical economy
Classical economic theory has always claimed that the economy is always at full-employment.
Guarantee that, all output produced by firms will be taken up by consumers. So, supply creates
its own demand. In the short-run these will be temporary disequilibrium the capital, labor and
product market, but in long run the economy is always in equilibrium or full employment. The
market is therefore perfect and there isn‟t need for government to interference in the economy.
However classical economy was proven wrong as the US economy got into the Great Depression
in the 1930‟s. Which is huge amount of unemployment due to business shut downs and bank
failures took place. It is clearly shows that is something wrong with the market.
Keynesian economics
In criticizing the classical economist, John Maynard Keynes says that there is not enough
demand in the market. In his explanation, in short run, it is the demand for goods and services
that will determined the level of GDP, rather than the supply of factor inputs. The Great
Depression was a result of low spending. Consumer and business spending not strong enough to
bring back the economy to full employment. The only way to rose up demand and GDP is by
increasing government spending.
Supply-side economics
In 1980‟s American economy was hit by stagflation. Most blame on over-regulation, lowering
productivity and motivation to increase output among producers. Neoclassical economic thinking
surfaced in the disguised of supply-side economics calling for changes in taxes to produce more
output then increasing economic activity.
6
7. 2.2 THE ROLE OF THE GOVERNMENT IN ISLAM
In the traditional economic, government is only a tool. Only when market is found inefficient or
fails to generate efficiency, only then, government will intervene to set things straight again.
However government in Islam is divinely inspired and thus, inherent in nature. This is because,
man as economic agents, consumers and supplier alike, are by nature weak and unstable. This
has been mentioned in al-Quran(70: 19-21). Another verse is (4:128) man is greedy and
selfishness.
Therefore, unlike conventional. Islamic economic not just calculate material in fiscal policy but
also spiritual to increase the country performance.
7
8. 3. FISCAL POLICY
3.1 IN CONVENTIONAL PERSPECTIVE
In conventional, they only focus on how to increase and protect they material from goes down.
3.1.1 TYPE OF FISCAL POLICY
the way are by automatic stabilizers and discretionary fiscal policy.
a) Automatic stabilizers
This is one of government tool to reduce the situation of economic if it in boom or recession by
automatically. When economy in boom, automatic stabilizers will make it reduce the boom. And
opposite, when economic in recession, automatic stabilizers will reduce the recession.
Type of automatic stabilizers:
i) Progressive Tax And Proportional Tax
This will help government in changes in society income and aggregate demand(AD).
When economic in boom, society income would increase and aggregate demand also increase
and price also increase. When government put progressive tax and proportional tax this will
reduce society income, AD and price.
When economic in recession, society income are become smaller then AD also decrease. In this
case, firms will reduce supply of the product and employment. This will lead to rose in
unemployment. When government put progressive tax and proportional tax, these tax will reduce
due to decrease of society income. This mean decrease in income would not so massive. Then,
AD will reduce and this will help to reduce unemployment.
8
9. ii) Maximum Price And Minimum Price
This method would guarantee of price stabilization in economy.
During economic boom, maximum price policy will prevent price increase above maximum
price or ceiling price.
During economic recession, minimum price policy will prevent price to goes down below floor
price.
b) Discretionary Fiscal Policy
This method are action by government to changes government spending and tax to overcome
problem of inflation or unemployment and encourage economic development.
Type of discretionary fiscal policy:
i) Contractionary fiscal policy
This is use to prevent inflation. During economy are facing inflation, government may reduce
government spending and increase tax to make AD goes down. When AD goes down, price
would decrease and this will control inflation.
ii) Expansionary fiscal policy
This method are for prevent deflation and encourage for economic growth. During economy in
deflation with unemployment rate become increasingly, government may increase government
spending and reduce tax for rise up AD. This will rise up job opportunity. Lastly, deflation can
be control and economic will growth.
9
10. iii) Stable fiscal policy
This method are same with expansionary fiscal policy. To prevent deflation and encourage
economic growth. During deflation, increase government spending and tax. As a result AD will
increase, this will reduce unemployment and will increase income of the country. This lead to
economic growth.
3.1.2 EFFECT OF FISCAL POLICY WITH KEYNESIAN TEORY
i) Decrease Government Spending
When government decrease government spending, this will also decrease AE and country
income. This lead to no more inflation.
ii) Increase tax
When tax be increase →society consumption decrease →AE decrease → income country
decrease → no inflation
iii)Increase government spending
AE increase → income country increase → no more deflation
iv) Decrease tax
society income increase → society consumption increase → AE increase → country
income increase → no more deflation.
10
11. v) increase government spending and tax in same time.
Two possibility may happen:-
a) changes in government > changes in tax or changes in government equal to changes in tax
AE will increase → income country increase. Income country in massive if changes in
government more than changes in tax.
b) changes in government < changes in tax
This will lead to decrease in AE → income country will decrease.
3.1.3 EFFECT OF FISCAL POLICY WITH AD-AS
a) Contractionary fiscal policy
Price increase → real country output increase → increase in both are depend to economy
capacity and slope of AS.
b) Expansionary fiscal policy
This lead to price and real country output decrease. The decrease of both also depends on
capacity of economy and slope of AS.
11
12. 3.2 IN ISLAM PERSPECTIVE
3.2.1 Prophet Yusuf Fiscal planning
In Quran has provide a best basic what a goos fiscal policy should be like. In surah Yusuf
(12:43-49) tell the story of a Pharaoh in Egypt who had a strange dream.
The king (of Egypt) said: "I do see (in a vision) seven fat kine whom seven lean ones devour and
seven green ears of corn, and seven (others) withered. O ye chiefs! Expound to me my vision if it
be that ye can interpret visions." (43) They said: "A confused medley of dreams: and we are not
skilled in the interpretation of dreams." (44) But the man who had been released, one of the two
(who had been in prison) and who now bethought him after (so long) a space of time, said: "I
will tell you the truth of its interpretation: send ye me (therefor)." (45) "O Joseph!" (he said) "O
man of truth! Expound to us (the dream) of seven fat kine whom seven lean ones devour, and of
seven green ears of corn and (seven) others withered: that I may return to the people, and that
they may understand." (46) (Joseph) said: "For seven years shall ye diligently sow as is your
wont: and the harvests that ye reap ye shall leave them in the ear― except a little, of which ye
shall eat. (47) "Then will come after that (period) seven dreadful (years), which will devour what
ye shall have laid by in advance for them, (all) except a little which ye shall have (specially)
guarded. (48) "Then will come after that (period) a year in which the people will have abundant
water, and in which they will press (wine and oil)." (49)
12
13. In the dream, the King saw seven green ears of wheat and seven withered or dying ears of wheat.
Then prophet Yusuf interpret the dreams. Prophet Yusuf said that Egypt would enjoy seven years
of prosperity with abundant harvests. In modern times, this mean high economic growth. He
advised the people of Egypt to hardworking in plant their crop, use a little for food and
sustenance and store the rest. This is because after the period of prosperity, Egypt would suffer
from drought for seven years when no crops would grow. In modern term this mean a bad long
recession. But with the reserve in store, the people of Egypt could survive the seven bad years.
Prophet Yusuf add more advice to the King, have to lease the best portions for seeds to plant
later when rains filled the Nile. In other words, people must set aside money for savings and
investment. To postpone current consumption to make way for production of future goods was
one of the main messages that Prophet Yusuf wanted the Pharaoh to think about.
What was tell in Quran was a simple budget policy. During economic booms, when earning is
high and business secured more profit, the budget should call for higher savings rather than
higher spending. For example, during good years, government normally earns higher tax
revenues. According to Prophet Yusuf‟s fiscal planning, the government should not forget that
the economy might eventually slow down one day. So it is good policy not to overspend such
that more revenues can be set aside as reserve.
During a recession however, Keynesian theory suggests higher government spending to help
stimulate aggregate demand. But how can we increase public spending if fewer reserves are
available for government spending. Bad fiscal policy allows government to overspend during
economic booms, leaving them with lower reserves to work with when the country recedes into a
major slow down.
13
14. Fiscal policy in terms by the government to manipulate taxes and spending such that
consumption and investment behavior this would help to achieve full-employment level of
output and price stability. For example, if the economy hit by a recession with declining sales,
output and employment, economic theory suggest more spending. More spending will increase
production, employment and income. One way to increase spending is to reduce taxes. Lower
personal income tax will increase disposable income and therefore raising consumption. Lower
corporate tax will increase net profit, which can increase more business spending. But does Islam
allow manipulating taxes and zakat? Taxes can be manipulate but zakat will fixed every year
2.5%.
3.2.2 SOURCES OF REVENUES IN EARLY ISLAMIC PERIOD
Zakat Special levy or tax on wealth and agriculture
products.
Kharaj Land tax
Jizya Poll tax on non-Muslims
Ghanimah Spoils of war
Fay‟ Properties received from enemies without
actual fighting
„Ushur Custom duties
14
15. 3.2.3 ZAKAT EXPENDITURE
Recipients (asnaf) Objective
Fuqara (very poor) Elimination of poverty and provisions of basic
needs
Masakin (poor) Elimination of poverty and provisions of basic
needs
Amilun (tax collector) Ministry of finance
Muallaf (newly converts and those near to Welfare and diplomatic expenditure
Islam
Al-Riqab (slaves) Welfare
Al-Gharimin Welfare
Ibnu Sabil Highways and roads, motels diplomatic
expenditure
Fisabilillah Military expenditure, education,
communication
3.2.4 MOBILIZING BAITULMAL’S ASSETS FOR ECONOMY RECOVERY
According to Keynes, the level of output of GDP is determined by demand. More demand for
goods and services by consumers, business and government means higher spending, which will
stimulate production, thus increasing output and employment.
To increase aggregate demand, based on monetary policy BNM intervention in the money
market in lowering the Kuala Lumpur Inter-bank Offer Rate (KLIBOR). At lower base lending
rate, banks are expected to make more loans as the demand for financing is also expected to
increase. Lower interest rate, investment and the GDP are expected to go up. But what if the
contrary is true, that is investment is interest inelastic or not sensitive to interest rate.
15
16. Likewise, even at lower interest rates it does not mean that banks are willing to make more loans.
The supply of loans too may be insensitive to interest rates due to fear of more bad debts if new
loans are made.
How Islamic economic institutions in this country could do their part, especially those who are
currently holding abundant supply of assets and cash. Here the BaituMal (Islamic treasury) can
do its noble part, especially in providing capital and land resources.
Islamic public assets such as zakat funds and waqf properties on a large scale. If this public asset
difficult to mobilize on a grand scale, which finally all Muslims will stand to lose. If those
assets are properly utilized so that more benefits can be generated from them, or else, like in a
hadith its effect on donors when the charity or waqf properties were not properly mobilized by its
trustees to benefit society.
In Malaysia, there are a lot of waqf land that have been misused. Misused is including leaving
them idle, failing to collect rent from tenants and even gazetting these lands for non-religious
purpose. Education and learning is a scarce commodity today, so those waqf properties may help
to solve the problem.
However, without capital, waqaf properties would not can mobilized. Here now are the use of
zakat. Zakat means “growth”. It is actually a tax on assets that are growing or increasing in size.
Zakat is obligation not a personal thing. The state has a legal claim on this tax, which include
zakat tax on wealth, income and agriculture produce.
16
17. Among the eight asnafs, zakat spending for fisabilillah purpose is so wide that itihad can be
made on how zakat funds can put on full force to improve the live of Muslims and mankind.
Spending for the way of Allah can be mean many things such as education, national defense,
communication and infrastructure development.
Surplus of zakat and idle of waqf lands are revived to the maximum advantage of Muslims.
Doing so will stimulate the demand for raw material and labor, which brings more jobs and
value-added activities to the local economy and thus help economics recovery. And there will be
sufficient projects for contractors as well as other interested parties.
17
18. 4. CONCLUSION
Macroeconomic policies in Islam can indeed cover a wide array of topics, which this paper has
only address a few. The Islamic economic system must in the first place ensure economic justice
in economic transactions. This will make macroeconomic management to be pursued to the
minimum while the state will always be in constant surveillance to see that economic growth and
stability is guarantees and secured. For example, if governments failed to exercise restraint on
excessive expenditures during good times, they will have no choice but to intensify fiscal policy
to stimulate spending when recession hits the country.
So now we can see that the different fiscal policy from Islamic and conventional. The theory
from conventional are much more on analyze the consumer behavior to protect economy from
having economic problem which is inflation, deflation and stagflation. They more to material. As
their focusing to maximize profit and minimize losses. However in Islam, it not just stress on
material but also spiritual. Here we can see the justice in Islam. Stimulate of zakat and waqf to
improve the economic society.
Saving and investment are really importance during economic boom as been told in Quran in
surah Yusuff. The return from the saving and investment will be use full during economic
recession. This mean that, during in stable position we have to remember the economy is not
always in booms. When the period for economic goes down we must be prepared for what aver
are up coming.
18
19. 5. Bibliography
BOOK
FOONG, L. M. (2005). DASAR FISCAL. In TEKS PRA-U MAKROEKONOMI (pp. 202-212).
SELANGOR : PEARSON MALAYSIA SDN BHD.
(1999). In A. M. IBRAHIM, ISLAMIC FINANCIAL SERVICES AND PRODUCTS (pp. 43-80).
KUALA LUMPUR: IKIM PUBLISHING UNIT.
ONLINE JOURNAL
1.http://islamiccenter.kau.edu.sa/english/Publications/Ziauddin%20Ahmed/Fiscal%20Policy/FIS
CAL%20POLICY%20-%20ZIAUDDIN%20-%20%5BCOMPLETE%20BOOK%5D.pdf
2. http://islamiccenter.kau.edu.sa/arabic/Magallah/Pdf/Old-1-1/Faridi_09.pdf
3. http://iei.uv.es/~rdomenec/EUbudget/EUbudget.pdf
4. http://courses.cit.cornell.edu/tp253/docs/malaysia_pbcs.pdf
5. http://www.ief.es/Publicaciones/PapelesDeTrabajo/pt2003_11.pdf
6.http://www.emeraldinsight.com/journals.htm?issn=03068293&volume=33&issue=2&articleid
=1537573&show=pdf
7. http://www.princeton.edu/~erp/ERParchives/archivepdfs/M144.pdf
8. http://kisi.deu.edu.tr//yesim.kustepeli/w4499.pdf
9. http://abacus.bates.edu/~daschaue/aschauer85.pdf
19