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Public financial management indicators for emergency response challenges and quality of well-being in OECD countries

Author

Listed:
  • Faris Alshubiri

    (Dhofar University)

  • Mohamed Elheddad

    (Leeds Trinity University)

  • Abdelrahman Alfar

    (University of Hull)

Abstract

This study aims to examine the relationship between public financial management and indicators of well-being among 29 Economic Co-operation and Development (OECD) countries using a balanced panel dataset over the period between 2005 and 2019. This study used a matrix of seven proxy measures of public financial management, which works as an integrated financial system to improve the objective quality of well-being measured by employment, education level, productivity, and wages. Using the generalised method of moments, the estimator's results, indicate that higher government revenues, expenses (% of GDP) lead to lower well-being while the higher net lending /net borrowing, cost of business start-up procedures, and adjusted gross savings (% of GNI) lead to increase well-being measured by spending on education. The higher government revenues, regulatory quality, government effectiveness, and higher net lending /net borrowing lead to improved well-being, while the higher cost of business start-up procedures (% of GNI per capita) leads to lower well-being measured by wages. The higher government revenues, government effectiveness, and higher net lending/net borrowing lead to increased well-being. In contrast, the higher expense (% of GDP) leads to lower well-being measured by productivity labor. The higher government revenues, government effectiveness, regulatory quality, net lending /net borrowing and adjusted gross savings lead to lower well-being, while the higher cost of business start-up procedures leads to increased well-being measured by employment rates. The OECD countries should prepare fiscal policies to ensure the sustainability of public finances in the long run and identify emergency response mechanisms to overcome the challenges of improving the objective quality of well-being.

Suggested Citation

  • Faris Alshubiri & Mohamed Elheddad & Abdelrahman Alfar, 2023. "Public financial management indicators for emergency response challenges and quality of well-being in OECD countries," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 22(1), pages 129-158, November.
  • Handle: RePEc:spr:minsoc:v:22:y:2023:i:1:d:10.1007_s11299-023-00299-x
    DOI: 10.1007/s11299-023-00299-x
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    More about this item

    Keywords

    Public financial management; Objective well-being; Budget theory; Bucket theory; Aspiration theory; Set-point theory;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D6 - Microeconomics - - Welfare Economics
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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