Blockchain Papers

weston lucas

No abstract is available for this record.

Boban Dašić, Blagoje Pušonja, Radmila Trklja

Local self-governments, as a form of exercising and realizing citizens' authority, have access to certain material resources that serve the purpose of performing their original and constitutionally guaranteed functions. As decentralized levels of state power, local self-governments regulate and execute legally assigned tasks in the interest of their citizens, for which they require appropriate financial resources. The methods of financing local self-governments in the Republic of Serbia are regulated by legislation and guaranteed by the Constitution. There are several methods for financing local self-governments, i.e., for securing funds for municipalities, cities, and the City of Belgrade. This paper focuses on various methods of financing local self-governments, with particular attention to non-earmarked transfers from the national budget of the Republic of Serbia. The aim of the paper is to highlight the importance of national budget financing of local self-governments, as well as the need for its reform.

Dilgasa Bedada

No abstract is available for this record.

Emmanuel Osei-Dwomoh, Gabriel Osei Forkuo

No abstract is available for this record.

Kshitiz Shrestha, Rose Camille Vincent, Jorge Martínez-Vázquez

No abstract is available for this record.

Olufunmilayo Temitope Alakija, Hammed Agboola Yusuf, Ganiy Adewale Elegbede, Abiola Shittu · 5 authors

The financial independence of state governments hinges on their ability to prioritize Internally Generated Revenue (IGR), which could help them to better achieve the social welfare and infrastructure needs of their citizens. The purpose of this study is to investigate the impact of internally generated revenue on infrastructural development in Kwara state. By decomposing IGR into tax and non-tax revenue, we hypothesize that there is no significant long-term and short-term relationship between tax/non-tax revenue and Kwara state infrastructural development. Due to its ability to avoid stationary data problems, Auto-Regressive Distributed Lag (ARDL) was employed to analyze the annual data which were extracted from the Kwara state financial statement report from 1999–2023. This study finds that IGR and loan have a significant positive influence on infrastructural development, both in the short and long run. However, tax revenue influence can only be felt in the short-run and the previous year’s loan exhibits a negative effect on infrastructural development in the current year. Practically, these results imply that IGR is an essential source of revenue for the Kwara state government to finance capital projects, especially non-tax revenue, the effects of which tend to also be felt in the long-run. It can also be linked to the fiscal decentralization concept that supports the state government’s fiscal autonomy. The study suggests that the Kwara state government should increase its tax base and rate in a form that would not yield negative consequences on the state economy, and diversify its non-tax revenue sources to cushion unexpected economic shocks.

Qingfu Liu, Pingyi Lou, Hong Song, Chuanjie Wang

No abstract is available for this record.

Ramil Abbasov

Government budgeting and expenditure policies play a central role in shaping national economic trajectories, influencing fiscal sustainability, and determining the quality of public services. This article provides a comprehensive review of the multifaceted effects of public budgeting, addressing key issues such as the impact of government spending on economic growth, the dynamics of budget deficits and public debt sustainability, and the roles of fiscal rules, gender budgeting, and political cycles. Additional attention is given to the effectiveness of performance-based budgeting, the challenges of balancing budgets in welfare states, and the implications of military spending, budget transparency, and participatory budgeting on governance and public trust. Further discussions analyze how fiscal decentralization, off-budget expenditures, and differing budgeting frameworks between federal and unitary states affect long-term economic stability and public finance. By synthesizing empirical and theoretical insights, this article offers policy recommendations to enhance fiscal discipline, encourage citizen engagement, and promote sustainable economic growth.

P. Mudalige, N. S. Cooray, Saliya De Silva, K. Fernando

No abstract is available for this record.

Sazzad Islam

This systematic review explores the role of participatory budgeting (PB) in enhancing public finance systems and improving policy effectiveness within local governance contexts. Drawing upon the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 framework, this study synthesizes findings from 92 peer-reviewed articles and high-quality institutional reports published between 2000 and 2024. The review investigates how PB contributes to fiscal decentralization, budget transparency, equitable public expenditure, service delivery, social inclusion, and civic engagement. Through a rigorous analysis of empirical and theoretical contributions, the review highlights the multidimensional value of PB in realigning public spending with local needs and promoting democratic accountability. Key findings indicate that PB strengthens the alignment between public resource allocation and community-defined priorities, reduces corruption through participatory oversight mechanisms, and fosters institutional trust by enhancing transparency and inclusiveness. The evidence shows that PB not only empowers marginalized populations—such as women, youth, and ethnic minorities—but also encourages sustained civic learning, social cohesion, and citizen-state collaboration. However, successful implementation of PB is contingent upon several enabling conditions, including strong political commitment, sufficient administrative capacity, legal frameworks that institutionalize participatory practices, and the presence of an active and organized civil society. Comparative analysis across Latin America, Europe, Africa, Asia, and North America reveals that while PB principles are globally adaptable, their effectiveness varies depending on local political culture, institutional maturity, and infrastructural readiness. The review also underscores the potential of digital PB platforms in expanding access and participation, though challenges remain regarding inclusivity and the digital divide. Despite promising impacts, the review identifies notable research gaps, such as the absence of longitudinal impact assessments, limited integration of intersectional frameworks, and the underrepresentation of PB practices in fragile, post-conflict, or authoritarian contexts. Furthermore, most evaluations focus on output measures (e.g., number of projects funded) rather than long-term governance or developmental outcomes. By consolidating diverse strands of literature, this review underscores PB’s transformative potential as both a governance mechanism and a fiscal tool. It calls for more context-sensitive, interdisciplinary research to fully understand PB’s long-term contributions to inclusive development, democratic renewal, and sustainable public finance reform.

Rubhesh Jha

The global climate crisis demands urgent and transformative financial mechanisms to support mitigation and adaptation efforts. Traditional climate finance models face significant challenges, including inefficiency, limited transparency, and inequitable access, particularly for marginalized communities. Decentralized Finance (DeFi), based on blockchain technology, offers a promising solution by enhancing transparency, utilizing smart contracts, and enabling decentralized governance. This study explores the role of DeFi in revolutionizing climate finance through a mixed-methods approach. It combines quantitative analysis of blockchain-based climate finance transactions with qualitative insights from industry experts, policymakers, and developers. The findings reveal that DeFi can reduce transaction costs, improve transparency, and democratize access to climate funds, with case studies such as KlimaDAO and the Toucan Protocol illustrating its potential in carbon credit systems and renewable energy projects. However, challenges such as regulatory uncertainty, technical vulnerabilities, and scalability issues persist. This research contributes to the growing discourse on integrating DeFi into climate finance by proposing a conceptual framework for its application and outlining future research directions. The results have significant implications for academics, practitioners, and policymakers striving to create effective, scalable solutions for financing climate action.

John Paolo R. Rivera, Ramona Maria Miral, Mark Gerald Ruiz

This paper explores the fiscal impacts of climate-related phenomena in the Philippines and policy recommendations for creating a climate-resilient economy. A three-pronged empirical approach (i.e., time series, panel data, and cross-section analyses) was employed to examine the nuanced interplay of climate shocks, fiscal health, and economic sustainability. Time series analysis highlighted how structural vulnerabilities, reliance on climate-sensitive sectors, and socio-economic inequalities exacerbate long-term scarring effects on growth. Panel data analysis emphasized the acute impact of temperature on government consumption expenditure, contrasting with the mixed fiscal effects of rainfall and storms, which are influenced by mitigation measures and fiscal structures. Cross-section analysis further elucidated how the fiscal resilience of local government units depends on external revenues, pre-allocated funds, and disaster severity. Findings revealed the need for region-specific fiscal responses, diverging from established scholarly literature due to the Philippines’ decentralized disaster management and reliance on local institutions. Policy recommendations include establishing a climate resilience fund, integrating climate-responsive budgeting, reinforcing risk transfer mechanisms, incentivizing green investments, and empowering local governments to manage adaptation funds. Additionally, investing in climate research, data-driven decision-making, and public awareness campaigns is critical. Aligning climate finance with long-term development plans and the 2030 Agenda for Sustainable Development ensures that resilience is embedded within the broader development strategy. These steps aim to prepare the Philippines for climate-induced risks while fostering sustainable growth, mitigating fiscal shocks, and ensuring economic stability.

Nabil Harir, Zakariae Bel Mkaddem

Purpose This study aims to investigate the potential impact of total value locked (TVL) fluctuation in decentralized finance (DeFi) on banks deposits for a sample of 21 countries, including the Eurozone members and the USA, over the period from July 2018 to October 2023. Design/methodology/approach Panel vector autoregression model has been used to analyze the existence of a relationship between TVL and banks deposits. In the second stage, the impulse response function has been exercised to find out the response of banks deposits among each nation. Findings Empirical findings exhibit that while increases in TVL have a significant negative long-run association with banks deposits in a global perspective, the effect is weak, suggesting modest disruption to traditional banking services to date. However, the impact varies between short and long-run effects at the country level. Six nations exhibit substantial negative long-run effects, whereas eight countries experience only temporary decreases in deposits following TVL upticks that rebound over time, reflecting the lack of trust in DeFi services and the engagement in speculative instead of long-term activities. Research limitations/implications This study provides general insights into DeFi’s impact on banking performance and deposit stability. However, it likely has limitations in scope and time frame. Future research could explore long-term effects, specific DeFi protocols and cross-country comparisons. Practical implications This study’s findings provide key insights for policymakers, central banks and bank managers on the impact of DeFi growth on banking performance and deposit stability. The results highlight the need for adaptive regulatory frameworks and investment strategies to address the emerging DeFi ecosystem. At the country level, the observed variations suggest the importance of tailored policy approaches. These insights are crucial for developing effective regulations and strategies in the evolving financial landscape. Social implications DeFi growth may alter financial access and inclusion, raising concerns about consumer protection and literacy. It could shift power dynamics in finance, potentially reducing traditional intermediaries’ influence while creating new forms of inequality. Balancing innovation with social responsibility is crucial for equitable distribution of benefits. Originality/value Although numerous studies have been conducted on the effects of cryptocurrencies on bank deposits and stock performance across various regions, they have largely overlooked the DeFi and its role in influencing deposits as a new competitor to traditional banks services. This study aims to address this gap by examining the influence of TVL developments on banks deposits, and to what extent it can be served as an alternative to banking services.

Mehdi Raza

This paper critically examines Pakistan’s fiscal federalism and highlights the challenges posed by the 18th Constitutional Amendment 2010. The research is contextualized within the broader theoretical framework of fiscal federalism. Although intended to decentralize power and grant fiscal autonomy to provinces, the amendment has created structural fiscal issues, especially within the National Finance Commission. Locking of the provincial NFC share, lack of consensus building on the NFC Award since 2009, stagnant fiscal space and tax-to-GDP ratio, vertical fiscal imbalance, and absence of a joint fiscal responsibility mechanism have a negative bearing on the macroeconomic stability of Pakistan. Limited fiscal decentralization to local governments further restricts equitable development at the grassroots level. Key recommendations include operationalizing the NFC Secretariat, revising fiscal frameworks, incentivizing provincial tax efforts, and enhancing collaboration through the Council of Common Interest to strengthen fiscal management and cohesion.

C. Rangarajan, Dinesh Kumar Srivastava

Abstract This chapter highlights the basic tenets of fiscal federalism, making a distinction between the traditional focus on the link between decentralization and welfare to its more modern-day extensions. The idea of fiscal federalism is couched in the belief that multi-level governments can augment the pursuit of efficiency and equity in the provision of public and merit goods through cooperation, competition, and coordination among central and sub-national governments. India’s constitution provides for an independent body, namely the Finance Commission, for this purpose. The constitutional arrangements imply an asymmetry in the assignment of resources and responsibilities between the central and the sub-national governments. This has resulted in the centre having a larger share of resources, and the states having larger responsibilities. The system is brought in balance by a suitable scheme of transfers from the centre to the states. The challenge is to design a scheme of fiscal transfers that provides the right incentives and facilitates comparable standards of public and merit services throughout the country. In this chapter, the modern extensions of the idea of fiscal federalism are also extensively discussed. These deal mainly with five aspects, viz. fiscal competition among jurisdictions, political economy aspects of fiscal federalism, market-preserving fiscal federalism, environmental federalism, and fiscal decentralization and growth. These are all aspects of federalism that have a bearing on the evolution of fiscal federalism in India and are often reflected in the changing terms of reference of the Finance Commissions.

Abu Hassan Abu Bakar, Anwar Sanusi, Harsono Harsono

The issue of regional inequality has gained prominence during the era of progress, driven by the goal of promoting equitable development and enhancing the well-being of all segments of society. Papua Province is an integral part of Indonesia, and confronts intricate hurdles in addressing regional inequality. In response to these hurdles, special autonomy status and fiscal decentralization were implemented to boost regional autonomy. This study aims to scrutinize the impact of special autonomy and fiscal decentralization on regional inequality within Papua Province. The dataset used in the study spans from 2011 to 2021 and has been sourced from the Central Bureau of Statistics for Papua Province and the Directorate General of Fiscal Balance under the Ministry of Finance of the Republic of Indonesia. Multiple linear regression analysis was applied and the analytical results underscore that granting special autonomy status has exerted a noteworthy influence in diminishing regional inequality within Papua Province. Nevertheless, an unexpected finding is that fiscal decentralization has not substantially curtailed regional inequality within the region. These revelations provide a comprehensive overview of the roles played by fiscal decentralization and special autonomy in endeavors to alleviate regional inequality in Papua Province. The implications of these findings lay the groundwork for policymaking and developmental planning that foster inclusivity and sustainable progress within the Province of Papua. Keywords: special autonomy, fiscal decentralization, regional inequality

José María Durán‐Cabré, Alejandro Esteller Moré, Luca Salvadori

No abstract is available for this record.

Jinli Wang

This paper aims to comprehensively examine the impact of China's environmental decentralization on corporate environmental, social, and governance (ESG) performance and investigate the underlying mechanisms. We analyze data from Chinese listed firms spanning from 2010 to 2020. The empirical findings demonstrate that: Firstly, environmental decentralization significantly inhibits corporate ESG performance. Secondly, fiscal decentralization acts as a moderating factor whereby an increase in its level strengthens the inhibitory effect of environmental decentralization on corporate ESG performance. Thirdly, heterogeneity analysis reveals that the impact of environmental decentralization varies across different types of firms in terms of their ESG performance. Privately-owned, high-polluting, and high-tech companies are particularly inclined to reduce their ESG performance with increasing levels of environmental decentralization. Finally, our mechanism analysis indicates that environmental decentralization curtails ESG practices by exacerbating financing constraints for firms and deregulating ecological environments. These conclusions remain robust after addressing potential endogeneity issues and conducting various sensitivity tests. These findings offer valuable insights for policymakers to promote sustainable economic development.

Nasim Roshdieh, Golnaz Farzad

The main goal of this paper was to investigate the effect of fiscal decentralization on foreign direct investment (FDI) in developing countries during the years 1990-2022.For this purpose, we have used the Panel Smooth Transition Regression method (PSTR).Decentralization is the financial equivalent of the central government transferring resources to local governments.Policies that increase the proportion of provincial government financing allocated to local infrastructure through fiscal decentralization can attract more foreign direct investment.Based on the results obtained from the model estimation, on percent increase the fiscal decentralization causes to increase in foreign direct investment equal to 0.86.So, we can say that providing the necessary fields for the expansion of fiscal decentralization can help to promote foreign direct investment levels in developing countries.

Wenqian Yang, Changyi Lei

This paper explores the current state and formation mechanisms of local government debt risk in China. With the slowdown in economic growth and the reduction in land finance revenue, the scale of local government debt has expanded, and debt risks have emerged. This paper analyzes the impact of fiscal systems, regional competition, and promotion incentives on debt risk, finding that mismatched fiscal powers and responsibilities, increased fiscal decentralization, tax competition, and promotion pressures have driven debt expansion. To address these issues, the paper proposes three policy recommendations: central fiscal support to promote economic recovery, optimization of the debt structure to enhance transparency, and strict control of new debt with performance assessments. This research provides theoretical support for understanding the formation mechanisms of local government debt risk and offers references for policy formulation.

Alessandro Citanna, Mich Tvede

Should the government run an uncertain fiscal policy to finance its liabilities? We call the resulting uncertainty taxspots, and study conditions that make taxspots optimal and recurrent in standard Ramsey problems. We show that prudence and market incompleteness play a role in sustaining taxspots, and that equal-treatment randomizations can be decentralized via taxspots even in the absence of financial markets.

Ulysses Koudou

Digitalization has fundamentally changed the global economy and will continue to do so. This study investigates how the US Federal Reserve and US Treasury may work together to use decentralized finance (DeFi) systems to promote economic growth in local communities. The study looks into the potential for transformation and the difficulties in incorporating DeFi into conventional financial institutions. Research shows that the use of cash as a means of payment is widely expected to decline in the future. As a result, the public’s ability to make transactions using central bank money may decline rapidly. This study's goals are to solve economic issues, promote innovation, and increase financial efficiency. The use of in-depth interviews, theme analysis, case studies, stakeholder perspectives, comparative analysis, and document analysis is suggested as part of a qualitative research methodology. The goal of these approaches is to offer a sophisticated comprehension of the dynamics of collaboration and the consequences of DeFi integration in the context of the Federal Reserve-Treasury relationship. Important data sources that are necessary to answer the research question are indicated, such as US Treasury statistics, Federal Reserve publications, DeFi platforms, and International Monetary Fund economic indicators. Informed decision-making and policy formation may pave the way for a more inclusive and efficient financial ecosystem, which will eventually drive regional economic growth in the United States and promote monetary sovereignty for the aforementioned monetary entities. This can be achieved by investigating creative collaboration tactics between the Federal Reserve and the US Treasury.

Mohammed Ibrahim Gariba, Samuel Amponsah Odei, Frank Febiri, Romana Provazníková

The motivation of this research is the surge in the integration of the digital economy (DE) and fiscal decentralization (FD) as crucial issues for countries. To maintain sustainable growth, it is important for EU to adopt sustainable development goal (SDGs) practices. However, the connection between DE, FD, and SDG practices has not been thoroughly examined in existing literature. Therefore, the objective of this study was to examine the mediating role of DE between FD and SDGs in EU. We employed a panel dataset between 2016 and 2022 from Eurostat, the Organization for Economic Cooperation and Development, and Government Finance Statistics, using a quantitative research design, and applied the structural equation model (PLS-SEM) analysis to test the hypotheses. The results indicate that FD has a significant negative effect on economic sustainability but a significant positive effect on environmental and social SDGs. In addition, FD has a significant positive effect on DE. We also found that DE has a significant positive relationship with economic and social SDGs. However, DE has a negative but significant influence on environmental sustainability. This study also proved that DE plays a mediating role between FD and Sustainability. This study contributes to theories of fiscal federalism and resource dependency. These original findings have several practical implications for policymakers and contribute to the current debate on the role of FD in SDGs through DE. hence, we recommend that policymakers prioritize the development of broadband Internet access, e-governance resources, and invest in digital skill training programs.

Abdul Hamid Paddu, Indraswati Tri Abdi Reviane, Nur Dwiana Sari Saudi, Fitriwati Djam’an · 6 authors

This study investigates a fresh perspective on how natural resource rents (NRR) and quantity of natural resources (QNR) modulate the influence of fiscal decentralization (FD) and the Financial Development Index (FDI) on energy efficiency (ENE) and CO2 Emissions. We draw upon the Stochastic Impacts of Regression on Population, Affluence, and Technology framework, taking the BRICS countries as the subject of investigation from 1986 through 2021. Using a panel Method of Moments Quantile Regression with fixed effects, our results suggest that fiscal decentralization is favorable for environmental stability, particularly in BRICS countries with higher energy efficiency and CO2 Emission levels. Increased FDI proves environmentally harmful, with pronounced effects in more energy-efficient nations. Regarding direct influences, NRR and QNR hinder energy and CO2 efficiency, notably in countries with lower energy efficiency and CO2 emissions. Regarding indirect effects, NRR and QNR positively steer the impact of fiscal decentralization and the Financial Development Index on energy efficiency and CO2 Emissions, exhibiting stronger effects in energy-efficient nations. Among other control variables, Eco-Innovation (ECO_INNO), Solar energy production (SEP), Population (POP), and Economic Growth (GDP) foster environmental stability. We propose that fiscal decentralization should be based on a clear and responsible subnational government framework to counter rent-seeking behaviors and weak environmental conservation. Further, inclusive finance must strengthen the accessibility and cost-effectiveness of financial solutions for economic agents, promoting green consumption and investment initiatives to reach environmental stability and other Sustainable Development Goals.