Financing government investment and its implications for public capital: A small open economy perspective
ECONOMIC MODELLING
Authors: Hickey, Ronan; Lozej, Matija; Smyth, Diarmaid
Abstract
Expenditure reductions played a key role in many small open economies during fiscal consolidation, with large declines in public investment. This led to a reduction in public capital stock and affected the competitiveness of these economies. After the sovereign debt crisis, the governments that consider increasing investment to replenish the public capital stock have limited fiscal space and have to avoid external imbalances. We show that using budget-neutral investment spending can generate long-term benefits of higher public capital stock while at the same time limiting negative consequences for the public finances and the trade balance. The best way of financing government investment, which preserves fiscal and trade balances, and increases welfare, is by reducing other government spending. The second-best is financing investment with value-added tax. Financing with debt worsens fiscal and trade balances, while using distortionary labour taxes reduces labour supply, increases wage costs and worsens the trade deficit in the short run.
In-situ/operando X-ray absorption spectroscopic investigation of the electrode/electrolyte interface on the molecular scale
SURFACE SCIENCE
Authors: Kao, Li Cheng; Feng, Xuefei; Ha, Yang; Yang, Feipeng; Liu, Yi-Sheng; Hahn, Nathan T.; MacDougall, James; Chao, Weilun; Yang, Wanli; Zavadil, Kevin R.; Guo, Jinghua
Abstract
A method for performing X-ray absorption spectroscopy (XAS) in the soft X-ray region was developed to investigate the surface-sensitive electron signal of electrode/electrolyte interfaces in common multivalent based organic solvents under in situ/operando conditions. Our approach enables us to probe the molecular-scale structure of electrode interfaces by measuring total electron yield and is suitable for redox systems exhibiting low intrinsic electrochemical current. In-situ F K-edge XAS measurements in a 0.5 M Magnesium bis (trifluoromethanesulfonimide)/2-Methyltetrahydrofuran (Mg(TFSI)2/2-MeTHF) electrolyte were carried out to determine the evolution of interfacial species during the electrochemical charging/discharging process. Timedependent density-functional theory (TD-DFT) simulation indicate that the F K-edge evolution is the result of interfacial chemical environment change driven by electrochemical potential. In addition, we performed the "operando XAS" which runs the CV and collects spectra simultaneously. By using this method, the non-equilibrium state of condensed matter interfaces and interfacial dynamical transient process can be revealed.