In the new issue of Public Sector Economics, Mateo Ljubišić addresses the creation of a nowcasting model for economic activity in Croatia. By comparing various factor models, including the static method of principal components and dynamic methods of quasi-maximum likelihood and two-step estimation approaches, he aims to identify the model that accurately describes short-term GDP movements.

Josip Poljak analyses the effectiveness of internal communication in Croatian public companies and its impact on employee satisfaction. The results obtained from a hierarchical regression analysis indicate that satisfaction with internal communication is significantly more related to overall job satisfaction than sociodemographic characteristics.

Wataru Kobayashi and Junichiro Takahata analyse the impact of public pensions on resource allocation in a small open economy in which the labour supply of older generations is endogenous, with particular focus on labour supply, on savings and on social welfare.

Given the importance of good governance for the efficiency of government spending, Mert Topcu and Mustafa Alpin Gulsen examine the role of governance quality in the effectiveness of fiscal policy during the COVID-19 pandemic. The results suggest that good governance helps achieve economic recovery, whereas an increase in the size of the fiscal stimulus can, at best, help protect against economic slowdown.

Berat Kara examines budget forecasting errors in 15 major metropolitan municipalities in Turkey for the period 2011-2022. Findings show that in the revenue model, budget surplus and unemployment reduce errors, while inflation, population growth, and election years increase them. In the expenditure model, unemployment reduces errors, whereas inflation and election periods increase them.

Frank Adu and Roshelle Ramfol investigate the effect of climate finance and institutional quality on innovation in Sub-Saharan Africa between 2011 and 2022. Using data from 23 countries and a system GMM estimator, the findings reveal that climate finance alone has a negative impact on innovation, while institutional quality has a positive one.