Exploring the Influence of Theocracy on Fiscal Policies: A Critical Examination of the Bogd Khanate's Economic System, Accounting for Inflation, and Wealth Distribution

Abstract

This study examines the complex interconnections among theocratic elements, inflation, economic development, cultural values, and political stability within the framework of fiscal policies and wealth distribution. The objective is to enhance our comprehension of the intricate dynamics through which these diverse factors interplay in influencing economic policies and the distribution of income. This study employs a Bayesian regression methodology to analyse a comprehensive dataset that covers a period of three decades. To ensure diversity and representativeness, a stratified sampling approach is utilised. The incorporation of interaction terms enables the investigation of moderation effects, enabling a comprehensive analysis of how theocratic influence interacts with other contextual factors in a nuanced manner. The empirical analysis provides valuable and noteworthy findings. Theocracy is commonly linked to conservative fiscal policies and has the potential to worsen income inequality. Research has indicated that inflation has adverse effects on fiscal policies, whereas economic development and cultural values are positively correlated with progressive fiscal measures. There exists a positive correlation between political stability and fiscal policies. The presence of moderation effects serves to emphasise the intricate nature of these relationships, thus emphasising the significance of contextual factors. The identified results possess implications that are both theoretical and practical in nature. Their contributions enhance our comprehension of the influence of theocratic governance on fiscal policies and the distribution of wealth. The findings of this study provide valuable insights for policymakers in formulating fiscally equitable policies and addressing the negative consequences of inflation and theocratic influences in governance.