Investigating the Effect of Environment, Technology, Fiscal and Monetary Policy on Government Effectiveness Using Bootstrapped Simultaneous Quantile Regression

DOI

10.2991/978-94-6463-525-6_33How to use a DOI?

Keywords

econometrics; environment; technology; finance; quantile; bootstrap; simultaneous

Abstract

There is a growing interest in the explanatory factors of governance quality due to the direct relationship between government effectiveness and the well-being of the population. Government effectiveness can be influenced by a wide range of factors, including the environment policy, technology policy, fiscal policy, and monetary policy. The aim of this study is therefore the identification of the determinants of government effectiveness in relation to a wide range of factors, including the environment policy, technology policy, fiscal policy, and monetary policy. A sample of 99 countries observed between 1990 and 2022 was used across three regions: East Asia & Pacific, Europe & Central Asia and Latin America & Caribbean. The government effectiveness is measured by the World Bank governance indicator. Bootstrapped Simultaneous Quantile Regression (BSQR) is used as it allows researchers to predict a particular quantile of the dependent variable as a function of one or more independent variables. Quantile regression is a statistical modelling method that can accommodate asymmetric or extreme value problems in data distribution. The combination of different quantile values will provide a complete description of distributions that are asymmetric, dense in the tails of the distribution or truncated. Compared to estimates based on linear models, quantile regression has the attractive feature of being able to estimate the effects of explanatory variables, such as environment, technology and economic instability, with different coefficients at different quantiles of the conditional distribution of the response variable. This approach provides a more nuanced understanding of the relationships, especially if they are not constant across the distribution. In the context of government policy related to government effectiveness, BSQR can be used to predict how different government policies and other economic factors may affect different quantiles of the distribution of government effectiveness. In general, the results show that the effects vary (and are sometimes reversed sign) both across different variables and across regions. Actionable policies for the improvement of government effectiveness can be customized to the pattern of relationships at a given level of effectiveness.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nurjannah
AU  - Solimun
PY  - 2024
DA  - 2024/10/29
TI  - Investigating the Effect of Environment, Technology, Fiscal and Monetary Policy on Government Effectiveness Using Bootstrapped Simultaneous Quantile Regression
BT  - Proceedings of the 2023 Brawijaya International Conference (BIC 2023)
PB  - Atlantis Press
SP  - 289
EP  - 299
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-525-6_33
DO  - 10.2991/978-94-6463-525-6_33
ID  - 2024
ER  -