This thesis investigates the public sector wage premium in the UK over the last decade using both econometric and economic modelling methods. A comprehensive literature review is conducted to summarise the four popular types of methods adopted by the existing microeconomics studies, which are weakly derived from some labour economic theories. A common problem of the economic methods is the difficulty in dealing with selection bias when valid instruments are not available. All four types of econometric methods are then applied to estimating the public sector wage premium, resulting in an overall average of 6.5% when a relatively higher female's premium. In particular, propensity score matching method provides the most robust estimate against mis-specification. As a bridge between microdata and macrodata in the labour market, the wage premium is shown to be counter-cyclical. Indirect inference is then introduced as a new method of testing and estimating a micro-founded economic model in the microdata analysis context. All four types of econometric methods are used as auxiliary models to summarise the data features, based on which the distance between the actual data and the model-simulated data is assessed. A calibrated model passes the test only when the propensity score matching method is used as the comparison criterion. To focus on the key properties of the model, the OLS coefficients are grouped into a smaller dimension, and the estimated model can also pass the test. The selection bias can be tested in a straightforward way under indirect inference, and we find no evidence for selection in the data. A Monte Carlo experiment is designed to verify the high statistical power of indirect inference test. Finally, a normative analysis is carried out and there is no evidence of unjust factors behind the observed public sector wage premium.

In every society around the world, shelter is one of the most basic needs for every human being. Unfortunately, it is not one of the free gifts of nature. This means financing for housing is unavoidable. However, majority of the individuals are unable to achieve this without financial assistance. The recent 2007 financial crisis intervened in the pattern of housing finance which brought some changes in the market for the demand and supply of mortgage loans. This study therefore aims at investigating the extent of these changes and the resulting implications. It further explores households’ choice of mortgage provider and homeownership status. Using a longitudinal study, data was collected for periods before, during and after the financial crisis, with data ranging from 2003 to 2013. Primary and secondary method of data collection was employed in achieving the aims and objectives of the study. Primary data was collected using questionnaires and interviews. The questionnaire involved 320 bank customers while the interviews was done on 43 participants. Out of these 43 participamts, 31 were from the demand side of the study while 12 were mortage advisors. The findings revealed that the three distinct periods had significant differences in their patterns of housing finance. It was also found that households preferred their mortgages to be provided by the high street banks for security reasons with 88.2% of them satisfied with their mortgage providers. Also, initial deposit and increasing house prices were the most important impediment to obtaining a mortgage. Moreover, the claim by the households that the banks were not willing to grant mortgage loan to them was true to an extent as 54.4% of them agreed to the validity of the statement. Finally, the implications of the financial crisis on households as well as homeownership status implications on tenants were generally negative.

This dissertation is a collection of three chapters on the effect of corruption on inflation through public finance channels. Those chapters test the following hypothesis corrupt officials such as tax collectors, procurement officials, government sales officials, and so on, waste liquid government resources through their corrupt practices. The waste of resources by corrupt officials at multiple levels of a government may cause budget deficits or at least create a need for liquidities. Therefore, a government will evaluate its available options to meet this need and make a decision taking into consideration one or a combination of options. Such a decision is unavoidable. The first attempt at a solution may take the form of seigniorage, followed by borrowing. Financing this need will result in expansionary budget spending, thus leading to higher inflation. Chapter 1 tests the effects of corruption on inflation through public finance channels, seigniorage and debt financing. We use data for 1995 2011 across 72 countries, and apply techniques that control for the possible endogeneity. In all of our various models the estimated specifications show that corruption contributes to inflation both on its own and through public finance channels. The results are significant and have the right sign, which gives evidence of the contribution made by corrupt officials to increasing inflation, thus eventually hurting growth. The positive and significant results linking debt financing with corruption indicate that corrupt officials have alternative sources of funds when seigniorage is restricted. For policy makers, bringing about a diminishment in the effects of corruption on inflation requires a parallel strategy involving both central bank independence and government borrowing. In Chapter 2 we have investigated the relationship between corruption and inflation for all US states by examining the misuse of federal transfers to states as a channel. Our state level corruption measure consists of the number of officials convicted. We use data for the period of from 1992 through 2007 with different model specifications, fixed effect and second stage least square models. We find that state corruption contributes to higher levels of inflation. This result is robust throughout our differing model specifications. The effect of corruption on inflation takes place indirectly through state public financing, specifically federal transfer. In addition, our results are also robust when scaling convicted officials to size of state population, number of state prisoners, and number of state public employees. Chapter 3 tests our hypothesis using a developing country over regional level, Indian states. We use corruption data on perception and experience that Below Poverty Line households encounter when obtaining public services. We assume that corruption across Indian states hurts people who live below the poverty line. These people are already hurt by their poverty, which causes state governments to spend more to provide them aid and which also prevents such households from effectively participating in the state's economic growth. These high levels of state spending and lower growth rates have inflationary consequences. We found no direct relationship between corruption and inflation, indicating in agreement with the literature on corruption that the impact of corruption on inflation through certain channels is indirect, through public finance channel. We conclude that Indian state governments suffer from corruption that causes the "common man" to pay bribes in exchange for public services. This causes more households to claim more aid from their state governments, also prevents those households from effectively participating in their state's economic growth. Thereby, the rate of inflation increases along with this expansionary state spending.

This dissertation contains three chapters in macroeconomics that study the financing and provision of unemployment insurance. The first chapter studies cross-sectional differences in U.S. state provision of unemployment insurance and the distortionary effects of federal unemployment benefit subsidies in a dynamic labor search model. The paper has two main findings. First, differences in the job-separation rate and the job-finding rate within the model can generate the negative correlation between the average benefit provided by a state and the state's unemployment rate, as observed in the data. Secondly, the model shows how the federal subsidization of unemployment benefit extensions in high-unemployment states causes an over-provision of the benefit, which in turn increases the unemployment rate in those states. Because the extensions are federally subsidized, however, the welfare loss due to the distortion is offset by the benefits of redistribution between states. The second chapter studies the optimal government monitoring of job search effort by unemployment insurance recipients. The theoretical model is a labor search economy with imperfectly observable search effort. The government observes a signal that is correlated with job search effort and must decide the threshold level of the signal that determines continued UI eligibility. The results of the numerical analysis show that the government increases this threshold level at each duration of the unemployment spell. Further, an increasing threshold profile can generate a sharp increase and subsequent drop-off in search effort near the expiration of benefits as observed in the data. The third chapter studies the optimal mix of distortionary capital and labor taxes in an altruistic economy. This problem is addressed by solving a dynamic general equilibrium model with production, in which finitely-lived individuals are linked inter-generationally through altruistic preferences. The government is tasked with financing an exogenous stream of government spending by levying distortionary capital and labor income taxes in a way that minimizes welfare loss in the economy. The numerical results show that nearly all government revenue should be raised through the labor income tax. / text

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Thesis (Ph. D.)--Columbia University, 1929. / Vita. Published also as Studies in history, economics, and public law, ed. by the Faculty of political science of Columbia University, no. 309. Includes bibliographical references (p. 180-184). Also issued in print.

Thesis (Ph. D.)--Columbia University, 1929. / Vita. Published also as Studies in history, economics, and public law, ed. by the Faculty of political science of Columbia University, no. 309. eContent provider-neutral record in process. Description based on print version record. Includes bibliographical references (p. 180-184).

Inaug.-dis.--Leipzig. / Lebenslauf. "Literatur": p. [84]-85.

This thesis hinges upon the acknowledgement that Fiscal Decentralisation (FD) is an important ingredient in the current modernisation of government in numerous countries. Two basic questions are addressed. Firstly, it examines why some countries are more fiscally decentralised than others and secondly, it analyses the likely effects that such a decentralisation might have on the efficiency of the State. Two complementary approaches are followed to address the first question. Firstly, an econometric model to explain FD is estimated in Chapter I. The General Government appears to respond positively to income, population density, grants, military expenditures and trade. While urbanisation shows a negative effect, no significant impact on FD was detected in the cases of ethnic diversity and income distribution. As for decentralisation in the provision of housing and health, income has a negative effect. Also housing is negatively related to population density and positively affected by urbanisation. Secondly, the cases of USA, Canada, UK, Spain, Hungary, Poland, Argentina, Mexico and Chile are put under close examination in two basic aspects. Chapter II analyses the funding mechanisms of Sub National Governments (SNGs). Chapter III focuses on those responsibilities being held by SNGs and their historical origin. Anglo-American and Spanish traditions seem to have had a major influence in the institutional evolution of some countries and the extent of their FD. Regarding the effects of FD, Chapter IV examines a range of variables to explain Government's performance. It uses a two stages procedure that combines Data Envelopment Analysis with a set of Tobit regressions. The basic conclusion is that FD does not seem to affect macroeconomic variables, but it does have a positive and significant effect on the government's provision of health and education.

`Low Cost Home Ownership' represents a package of policy measures which are part of government housing policy to extend home ownership. The package was outlined by the Department of the Environment in a publicity brochure entitled `A First Home' (1981) aimed at local authorities and housing associations. The different Low Cost Home Ownership measures have been pioneered and implemented at a local level as part of the government's wider strategy of privatising housing provision and consumption. This thesis is directly concerned with exploring the structure, substance and impact of Low Cost Home Ownership policy, in the context of Glasgow. The thesis is based on three levels of analysis, linked through a focus on policy and the role of the state at national and local levels. First, a preliminary level of analysis evaluates the success of Low Cost Home Owernship policy in its own terms. It is suggested, for example, that the term `low cost' home ownership is a misnomer in many cases. At a second level of analysis, the thesis examines the structure of policy, including the division between central and local levels of government, and the categorisation of policy as, for instance, housing or planning. A third level of analysis incorporates the substance of Low Cost Home Ownership policy. The underlying assumptions of the policy are analysed, particularly the tenure bias of Low Cost Home Ownership. Urban policy encompasses Low Cost Home Ownership policy measures in several cities, including Glasgow, and the thesis examines the functionalist objectives of population and socio economic stability in the city. In addition, Low Cost Home Ownership policy in Glasgow is aimed at widening tenure choice and meeting housing needs. An analysis of these policy objectives requires the conceptualisation of `choice' and `need' in housing policy and housing studies.