• KDI Journal of Economic Policy
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• v.30 no.1
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• pp.131-170
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• 2008

Korea's public assistance system, represented by NBLS(National Basic livelihood Security), has disclosed critical problems despite the rapid increase in its budget, such as decreasing work incentive and deepening welfare trap. These typical problems of classical welfare system have been commonly witnessed in many other advanced countries. Therefore a number of efforts have been exerted to correct these problems by transferring the existing welfare system into a welfare-to-work(or workfare) system, and the most common one of such efforts is introducing the EITC(Earned Income Tax Credit)-type programs. They have already been implemented in many countries such as the USA, the UK and France, also Korean government decided to launch EITC program in 2009. This paper aims to propose some measures to improve Korean EITC program. For this, an optimization problem is constructed from the government's viewpoint. Optimal EITC program is defined to be a solution to the problem - a combination of phase-in rate, phase-out rate, and maximum credit that maximizes labor supply increase under a exogenously given budget constraint. Using a mechanism design analysis, we derive and characterize the optimal EITC program. Analysis results implies that Korean EITC structure needs to be modified so that phase-in rate is larger than phase-out rate and the upper limit of phase-out range becomes larger. Comparative static analysis results show that the feature of the optimal EITC program is sensitive to the change of income distribution, suggesting that if beneficiaries are categorized into different income groups, then it is desirable to apply distinctive EITC programs to each group.

• Korean Journal of Social Welfare Studies
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• v.40 no.1
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• pp.297-322
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• 2009

Child policy has focused on needy children with special emphasis on residual services but youth policy has implemented to promote capabilities of general adolescents by various activities. The fragmented implementation of child-youth policy by several ministries resulted in possible redundancy of target groups and insufficient service delivery system. Thus, the Ministry of Health, Welfare, and Family Affairs has pushed forward to integrate service delivery systems in child-youth policy after the former Ministry of Health and Welfare and the Government Youth Commission were integrated as part of a government reorganization plan. The purpose of this study is to review limitations of Lee Myung-bak government's plan to integrate child-youth policy and to make important suggestions for effective integration. Lee Myung-bak government's plan seeks to help children and adolescents prepare for the future and move forward with dreams and hope. However, this plan has fatal problems of overemphasizing the efficiency of finance without expansion of budget for children and adolescents. To achieve well-being tailored to one's life cycle, the full-scale expansion of budget is indispensible through the induction of the special fund or the special tax for children and adolescents. Fortunately, Lee Myung-bak government recognized child-youth policy as the social investment that would heighten national competitiveness in the long term, but there was insufficient child-youth policy infrastructure for new implementation. Therefore, Lee Myung-bak government needs a new design for integrated and universal child-youth policy that should take into account national human resource development plan and its economic development policy. The public responsibility for children and adolescents should be strengthened and, in addition, the network function in service delivery system should be complemented.

• Journal of Technology Innovation
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• v.25 no.3
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• pp.51-82
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• 2017

In terms of both economic growth and social welfare, this paper discusses the optimal proportion and size of basic research budget by adding knowledge stock to an endogenous growth model. On the basis of the modified endogenous growth model, this paper derived an equation that consists of kinds of parameters and suggested this equation as a criterion for determining whether allocated basic research budget has been appropriate. This paper also found that the theoretical optimal ratio between government investment spending and investment in basic research is equal to the ratio between the partial elasticity of output with respect of public capital stock and the partial elasticity of output with respect of knowledge stock. In addition, after the required parameters were specified based on precedent literatures, this paper estimated an optimum size of the basic research budget using the theoretical optimal ratio with official statistical records and compared the estimated size to its actual size. This paper therefore is expected to contribute to budget planning and allocation regarding establishing basic research policy, because the results of this paper presents a useful criterion for optimum level and an approximate size of investment in basic research. However, it should be noted that although the optimal solution is optimal in a economic sense, it may not be the best solution from a practical perspective.

• Journal of Environmental Policy
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• v.7 no.3
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• pp.1-40
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• 2008

In this paper, I examine the welfare effects of various revenue-neutral tax reforms in the case of two vertically-related oligopolies(downstream and upstream), where the upstream industry is polluting. I show analytically when and how government can improve welfare by initiating various tax reforms, regardless of either the feasibility of a lump sum transfer or the availability of a tax on pollution. The profit wedge that is the difference between the unit price and the unit cost and the marginal environmental damages(MED) becomes important to decidethe direction of a tax reform and is crucial to determine the direction of welfare-improving tax-subsidy schemes. I also show that a tax on pollution(Pigouvian tax) is superior to a tax on intermediate good even in the case of vertically-related oligopolies, because the former always brings in positive welfare effect from the upstream firms' input substitutability, which a tax on intermediate good cannot provide. Some policy implications for 'reducing environmentally-harmful subsidies' are also discussed.

• Proceeding of Spring/Autumn Annual Conference of KHA
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• 2011.04a
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• pp.172-175
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• 2011

Financial supports for housing for the disabled is limited since a certain amount of budget needs to be distributed for a number of disabled families. Therefore, it is important to fund renovation for the disabled effectively and properly. Financial and administrative supports for the renovation which intended to improve housing conditions in terms of accessibility (barrier free) and comfort needs to be implemented with larger outcome and smaller budget. The purpose of this study was to investigate various factor such as renovation cost and renovation elements, influence satisfaction of residents with disabilities. Participants of this study are limited to the recipients of financial supports for housing renovation and refurbishment from City of Seoul and Ministry of Heal and Welfare. A total of 155 cases were analyzed using post occupancy survey and analysis of project cost data. Overall, more cost were used for modification for housing condition improvement than the cost for removal of architectural barriers. Renovation cost differences were not apparent among the type and extent of an individual's disabilities. Instead existing housing type and physical condition for the housing affects cost for renovation more significantly. Overall the renovation cost is positively related to resident's satisfaction using regression analysis.

• Asian Journal of Business Environment
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• v.10 no.1
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• pp.29-36
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• 2020

Purpose: This study aims to analyze the effect of macroeconomic and non-macroeconomic determinants of capital flight. Research design, data and methodology: With five determinants, this survey was conducted by Eviews 10, and the ordinary least squares (OLS) as a statistical method was applied for examining the research hypothesis. The five determinants are a budget deficit, economic growth, inflation rate, the exchange rate, and sovereign rating. The capital flight measurement uses the World Bank residual approach. The data derive from the Central Bank of Indonesia, BPS-Statistics Indonesia, OECD, and Moody's Investor Service. Results: The result considers that economic growth, the exchange rate, and the sovereign rating will decrease capital flight. In addition, the budget deficit and the inflation rate will increase capital flight. The sovereign rating decreases capital flight bigger than the other determinants. In addition, the exchange rate is statistically significant. Conclusions: The most influential problem of capital flight in Indonesia is because of non-macroeconomics factor political issue, corruption, bad regulation, and others. That's why the investment climate in Indonesia is still not secure. We propose that the regime would have to amend the business rule for reducing capital, raising the investment climate, and demonstrating the creative industry.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.7
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• pp.415-422
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• 2018

Lycorma delicatula, known as spotted lanternfly, is a planthopper native to Southeast Asia, including Vietnam, India and South China. This species damages local fruit trees and has spread rapidly in South Korea in recent years. The purpose of this study is to present the methods and estimation results pertaining to the risk of invasive species like Lycorma delicatula. We used a partial budget (PB) method to assess direct income reduction of farm households and a partial equilibrium (PE) model to examine social welfare change from the outbreak of Lycorma delicatula. We also estimated the future economic impacts of Lycorma delicatula under various climate scenarios considering habitat suitability. As climate change progresses, domestic ecosystems are expected to become increasingly vulnerable to pest outbreaks leading to further economic damage. We believe that this study can be a base to evaluate efficiency of the national pest control and quarantine system.

• Journal of Korean Society of Transportation
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• v.29 no.5
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• pp.19-32
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• 2011

There are many investment budget drafts in the filed of a road traffic safety. The traffic safety budget is spitted into following three major areas: 1) traffic safety facility (Engineering), 2) traffic enforcement (Enforcement), and 3) traffic safety education & public relation (Education). The three area are known as so-called 3E policy. This study investigates the effect of the investment in the 3E policy on the reduction of traffic accidents analyzing the data annually collected from the 15 local governments during 1992 to 2007. The analysis employing the traffic accidents as the dependent variable reveals that the effect of the investment is higher if same amount of investment is made on areas of the traffic safety education and public relation than the area of facility improvement. The similar conclusions are resulted from the separate investigation of traffic accidents data by 6 different types. All the results consistently indicate that the current traffic safety investment being primarily made on traffic safety facility needs to shift to the areas of traffic safety education and public relation budget.

• The Journal of the Korea Contents Association
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• v.11 no.9
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• pp.238-245
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• 2011

For introduction of local autonomy system, local government enabled efficient supply of public service by local resident's request. Specially, local governments is doing effort of that organize various policy and a lot of budgets for social welfare promotion, but is interested relatively little in efficient use of social welfare finance and operation. According to these problem, this study measured efficiency of social welfare facility in local governments. The purpose of this analysis is to measure the efficiency of community welfare in local governments by data envelopment analysis(DEA), using data from 16 local governments in Korea. Input variance is GDP per capita in local, rate of welfare budget, rate of financial independence and local public official per 10,000 capita. Output variance is social welfare facility per 100,000 capita and park area per 1,000 capita, The results of the study are summarized as follows : First, There was differential in efficiency about social welfare facilities operation in local governments. 7 local governments(Busan, etc.) was an in efficiency. Second, some local governments(Incheon, etc.) must increase scale of input variance, and some local governments(Busan, etc.) must improve efficiency of input variance.

• 한국노년학
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• v.29 no.2
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• pp.563-578
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• 2009

Public pension system of western welfare states has been maintained by transfers of public resources between working-age population and old-age population. But population aging cause the problem of fiscal burden on pension financing, so cutback on public spending for the elderly has been on the issue at public agenda. The argument on public spending for the elderly is more aggressively proceeded in the United States than any other welfare states. The argument is concerned with the problems of generation and is going under the rhetoric name of 'Generational Equity' which contends unequal distribution of social resources such as federal budget within generations. This article analyzes the background of 'Generational Equity' perspective and the reason why that argument is actively going forward in the U. S. and political-economy context of that argument. Generational Equity perspective contends that the elderly are getting more benefits and high spending on the elderly has contributing to the rising poverty rate of children. But there are lots of objection to this perspective on the ground that the perspective has weak positive evidences. The reason that 'Generational Equity' perspective has the power only in the U. S. but other welfare states is mainly due to that pluralistic political regime and selective welfare system. This research presents that political-economy meaning of 'Generational Equity' perspective is related to the political regime and welfare system of the society itself. And this research has the implication that our society having a selective welfare system would take a risk of encountering 'Generational Equity' social debate in the near future.