Unexpected changes in tax revenues and the stabilisation function of fiscal policy. Evidence for EU
This paper analyzes the size and the determinants of unexpected changes in EU countries' tax revenues and their impact on the ability of EU governments to use fiscal policy as a macroeconomic stabilisation device. We make use of information taken from the Stability and Convergence Programmes (SCP) setting countries' medium-term fiscal plans and focus on the period preceding the 2008/2009 global financial crisis. Tax revenue surprises are found to have fluctuated widely, alternating periods of sizeable windfalls and periods of substantial shortfalls.When analysing this, we find that GDP growth surprises and, in some cases (i.e. Ireland, Spain the UK and Finland) asset prices fluctuations have exerted the most significant influence. In the sequel we provide evidence on the incidence of these unexpected changes in governments' tax revenues on the ability of governments to conduct counter-cyclical fiscal policies, which are desirable from a macroeconomic perspective.We find that countries that have experienced the largest tax revenue windfalls in the run-up to the 2008/2009 crisis have also tended to run more pro-cyclical fiscal policies although these results vary depending on the use of ex-post vs. real-time data and on the method used to calculate the cyclical position of the economy. Put differently, these results tend to indicate that while tax revenue windfalls may be good for the public purse during favourable times they may also (paradoxically) dwindle the ability of the countries concerned to run counter-cyclical fiscal policies when cyclical conditions revert.
Fiscal Equalization Schemes and Subcentral Government Borrowing
Examining the cases of Canada, Germany, and Spain, the role played by fiscal equalization schemes in determining subnational borrowing was analyzed, and the link between regional governments’ primary fiscal balances and gross domestic product per capita was tested econometrically. The study results show that either poor or rich regions can display higher regional public borrowing on average, and these results can be linked to the institutional design of regional equalization systems in place. Particular elements, such as tax efforts and fiscal capacities, also play relevant roles in this regard. Reforms of these schemes can therefore prove instrumental in reducing regional heterogeneity in public borrowing.
Habituation Protocols Improve Behavioral and Physiological Responses of Beef Cattle Exposed to Students in an Animal Handling Class
Simple Summary Students in agricultural programs have the opportunity to interact with animals during different teaching activities. However, students’ interactions with livestock may be distressing to the animals and can affect the students’ and animals’ safety. We investigate whether two human-animal habituation strategies, one with positive tactile stimulation and one without, would improve behavioral and physiological responses of beef heifers during a livestock handling class. Overall, heifers that received a habituation treatment had more positive behavior responses, and decreased physiological stress responses in comparison to heifers that were not exposed to habituation. Furthermore, the heifers exposed to the habituation with a positive tactile stimulation had the greatest improvements in behavior in comparison to control and non-stimulated heifers, exhibiting more positive behaviors when interacting with humans. Strategies to habituate cattle to human interaction with positive stimulation aligned with training humans that handle and interact with cattle on best practices and cattle behavior can improve behavior, reduce stress-related physiological responses and enhance safety for both humans and animals. Abstract Our objective was to determine the impact of different habituation protocols on beef cattle behavior, physiology, and temperament in response to human handling. Beef heifers were exposed to three habituation strategies: (1) tactile stimulation (brushing) in the working chute for seven consecutive days (STI; n = 18); (2) passage through the working chute for seven consecutive days (CHU; n = 19) and; (3) no habituation (CON; n = 19). Individual heifer respiratory rate (RR; n/min), internal vaginal temperature (VAGT; °C), and blood cortisol were measured. Further, behavior parameters were observed to generate a behavior score, and heifer interaction with students and their behavioral responses were recorded. Habituation with STI and CHU resulted in improved numerical behavioral scores compared to CON, and greater (p ≤ 0.05) handling latencies. Vaginal temperature was decreased in STI compared to CHU and CONT (p ≤ 0.05). Cortisol concentration did not differ among treatments, but decreased (p ≤ 0.05) from the start of the experiment to 14 days after treatment initiation. Both habituation protocols showed benefits, but heifers that received the positive tactile stimulation in the chute had the greatest behavior improvements. Furthermore, these heifers responded more calmly during student-animal interactions in class, which is beneficial for the students’ and animals’ safety.