• 한국사회정책
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• v.25 no.2
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• pp.305-332
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• 2018

This study explores the effectiveness of employment-oriented welfare state by analyzing the mediating role of employment rate on the relationship between public welfare effort and fiscal soundness. Notably, this study considers the quality of employment into the analysis: part-time work, involuntary part-time work and low-wage work in analysis. The data sample consists of 18 OECD countries which initiated employment-oriented welfare strategy after the crisis of welfare state. An analysis was conduct based on Baron & Kenny(1986)'s method and panel two-stage model to handle the endogeneity problem. The results show that while the high level of public welfare effort negatively affects the fiscal soundness if it contributes to boosting employment rates, it has positive effects on the fiscal soundness. However, when the incidence of involuntary part-time employment and low-wage employment is high, the mediating impact of employment rate on the fiscal soundness disappears. This study argues that unless the quality of employment is taken into consideration, the positive effect of employment-oriented welfare state strategy to improve the fiscal soundness is not fully guaranteed.

• 한국사회정책
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• v.24 no.4
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• pp.185-222
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• 2017

The purpose of this study is to investigate the effect of labor market policy on fiscal soundness of welfare state. The analysis was carried out using cross-sectional panel data regression analysis, stepwise mediating effect analysis and system GMM designed by Baron and Kenny(1986) based on the data from 1985 to 2015 for 20 OECD countries. In setting up the analysis model, this study considers the interaction effect between active and passive labor market policies as well as the time sequence of the outcomes which have been overlooked in the previous studies. The result shows that labor market policies have significant impacts on the fiscal condition of welfare states, which is measured as the levels of national debt in this study. Especially the expenditure on active labor market programs has a positive effect on improving the fiscal soundness of welfare states by promoting the employment rate. In contrast, passive labor market programs expenditure is negatively associated with employment rate growth and it exacerbates the burden of national debt in the short-term. However, when active labor market programs and passive labor market programs are combined, the negative impacts by passive pabor market policies on the fiscal soundness of welfare states are off-set. Therefore this study addresses that although the expansion of the labor market policies can be inimical to the fiscal soundness of welfare states in the short-term, in the long run, they can have effective roles in securing and promoting the fiscal soundness of the welfare states by promoting the employment rate.

• KDI Journal of Economic Policy
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• v.39 no.1
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• pp.41-82
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• 2017

This paper studies the risks associated with local finance in Korea by identifying the financial status of each local government, including the financial burdens of PPP projects, and examined governmental future burdens related to PPP projects. We reviewed all fiscal burdens associated with projects, such as, for BTL (Build-Transfer-Lease) types of projects, facility lease and operating expenses, and, for the BTO (Build-Transfer-Operate) types of projects, construction subsidies that are paid at the construction stage, MRG (Minimum Revenue Guarantee) payments and the government's share of payment. Furthermore, we compared the annual expenditures of local governments on PPP projects against their annual budgets and checked if the 2% ceiling rule could be applied.

• Korean journal of communication and information
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• v.63
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• pp.5-25
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• 2013

Korean society suffers from severe divisions represented by bi-polarization and collapse of the middle class. Intensive demanding on expanding social welfare budget has emerged in accordance with such a dramatic shift. Social consensus moving toward well-financed welfare policy, however, happens to meet political opposition supported by the discourse of fiscal soundness. This paper thus pays particular attention to deciphering the discursive structure in way of understanding how discourses bring public policy into play. For this purpose, news articles about fiscal soundness collected from 8 national newspapers have been analyzed in terms of frame, attitude, perspective and world view. Research results show, first of all, that there exist persistent competition between two frames identified as 'reduced tax with fiscal discipline' and 'increased tax with welfare money.' While the 'reduced tax' frame favors in maintaining tax cut at the expense of welfare budjet, the frame of 'increased tax' supports such arguments as the flexible employment of fiscal soundness and prosperity of national community helped by widening tax revenues. Also did these frames include a number of sub-frames like welfare populism, partisan politics, trickle down effect, tax bonanza for the rich, universal welfare and market over-reactions in order to bolster its logical authority. Media's active taking a part in penetrating supportive frames in line with political stance was found as well. Taking into account both the discursive structure upheld by frames and politics materialized by the media, the authors argue that public policies should be considered more as discourse than fixed reality. Shedding additional light on understanding the interplay among public opinion, policies and media discourse is of another importance for further study.

• KDI Journal of Economic Policy
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• v.42 no.4
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• pp.27-58
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• 2020

This paper intends to examine the extent of the fiscal contribution of immigrants to Korea. According to this analysis, the aim is to derive implications pertaining to the direction of Korea's immigration policy as a response to fiscal problems caused by population aging. For this purpose, a macroeconomic model is designed to measure the lifetime net fiscal contribution of immigrants in Korea by visa type, age, and other characteristics. According to this analysis, the sum of the lifetime fiscal contribution for all immigrants in Korea is negative. This implies that immigration policy reforms that increase the inflow size while maintaining the current structure of the foreign population characteristics can rather worsen Korea's fiscal problems. This finding suggests that immigration policy reform may exacerbate Korea's fiscal soundness if it simply targets the maintenance of the numerical balance of the demographic structure.

• Journal of Digital Convergence
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• v.12 no.1
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• pp.23-36
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• 2014

Recently economic crisis has brought world economic instability. Each country in order to stabilize the economy, fiscal rules are introduced or reinforced. Fiscal Policy in a country plays an important role in determining the economic situation in the present and future. Existing fiscal rules tend to place a rigid limit not only on the deficit ratio and thus on the scope for fiscal stabilization, but also on the extent to which fiscal policy can be used for structural purposes. But the fiscal rules are operated in many ways and adopted in various forms, with different binding of each other, according to their own fiscal situations, and political circumstances. This study shows several important factors for successful National fiscal system and continuous fiscal soundness and development.

• KDI Journal of Economic Policy
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• v.35 no.2
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• pp.71-105
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• 2013

Now that fiscal soundness is increasingly important influenced by the euro area fiscal crisis, early budget execution has been under the spotlight as a tool for economy control, other than typical expansionary method, such as supplementary budget. Basically, early budget execution is a fiscal policy instrument that reponses to economic fluctuations through modifying the inter-temporal allocation of fiscal expenditure within budget, without affecting fiscal soundness. This study empirically examines how effective the intert-temporal reallocation of fiscal expenditure is in economy control. Using Korea's Consolidated Fiscal data, the size of inter-temporal reallocation of fiscal expenditure is defined as changes of fiscal expenditure for one year excluding seasonal factors and used to explain real economic growth rate, a dependent variable. The result shows that the macroeconomic effect of the inter-temporal reallocation turns out meaningful in general, though some policy time lag exists. Meanwhile, a simulation using macroeconomic model finds that overall effect on economic growth is not large because increase in fiscal expenditure allocation at a certain point of time is canceled by the opposite direction within the same fiscal year. However, the inter-temporal reallocation is found to reduce volatility of key macroeconomic variables so as to contribute to partially stabilizing macroeconomy. In particular, such effect of economic stabilization seems to be highly apparent at the time of financial crisis, but not very noticeable in normal economic cycle.

• Asia-Pacific Journal of Business
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• v.12 no.4
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• pp.253-270
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• 2021

Purpose - The main purpose of this study is to measure and evaluate the level of national liabilities that Korea's national finances can afford. Specifically, the concepts of national debt and national liability are clarified, and the appropriate level of national liabilities is measured in terms of short-term fiscal crisis, mid-to-long-term fiscal crisis, and GDP. Based on these measurements of fiscal crisis, this study would like to propose national fiscal management plans. Design/methodology/approach - In order to clearly recognize the difference between the national debt and the national liability, this study examines the data from 2013 to 2020. In addition, this study uses data from the national financial statements from 2013 to 2018 to measure the appropriate level of national liabilities in terms of fiscal crisis management. Findings - Short-term fiscal crises, measured by current ratios, will not occur. Nevertheless, in view of the cash flow compensation ratio, the short-term bankruptcy of the national finances of Korea depends on the re-borrowing of short-term borrowings and current and long-term borrowings. In addition, in order to manage the mid-to long-term financial crisis, it is necessary to pay attention to the liability growth rate rather than the liability size. Research implications or Originality - While previous studies focused on the appropriate level of national debt, this study was differentiated as a study focused on the level of national liability coverage. It is expected that the results of this study will be used to manage the national fiscal soundness.

• Health Policy and Management
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• v.32 no.3
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• pp.245-246
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• 2022

Concerns about a global economic recession are rising following the coronavirus disease 2019 (COVID-19) pandemic. Accordingly, government entities, which are committed to overcome two barriers to severe inflation and economic recession, are showing high interest in spending management so as not to undermine fiscal soundness. Since the health care sector especially accounts for a large proportion of fiscal expenditure, it should be managed in a manner that the expense is appropriately spent. The National Health Insurance System and Healthcare System have secured international competitiveness and reliability by effectively responding to the COVID-19 pandemic. Likewise, considerable efforts should be made to reorganize the welfare and healthcare systems so that they can be sustainable during the post-COVID-19 era and the recession.

• The Journal of the Korea Contents Association
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• v.14 no.10
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• pp.112-123
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• 2014

This Study aims to establish better sound fiscal plan by investigating perception of local government officials. Local government fiscal consolidation is affected by a combination of factors, including social, economic, demographic, political financial health of local governments. We derived the financial situation of the government-related indicators, financial health-related indicators, the indicators to improve the financial health on the basis of this study are an existing discussion. To ensure the financial soundness of the Cheonan, it is necessary to increase the efficiency of financial management including financial monitoring and control devices provided the locals, investment screening analysis system to enable it. In addition, fiscal controls should be strengthened in order to effectively autonomous government debt management. You must cuts expense of local government to prepare for expansion of local government finance, it is necessary to realize that the fee rates. It should be made through a blend of autonomy and control in the central government, network of local government and the development of local financial operations. You should also to be distributed to the residents welfare and community development funds are invested substantially to establish a systematic planning, resource allocation, evaluation, and reflux system.