User:Nick Gardner /Sandbox: Difference between revisions

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==Index and Glossary==
There is an index to the topics dealt with in the economics articles [[Economics/Related Articles|here]], and a glossary of economic terms [[Economics/Glossary|here]].


See also the  [[Politics/Index|'''index to the politics articles ''']].


[[User:Nick_Gardner#Methodology|methodology]]


{|align="right" cellpadding="10" style="background-color:#FFFFCC; width:40%; border: 1px solid #aaa; margin:20px; font-size: 92%;"
|"''The European Union is something ...
very precious, not only for us in Europe, but also for the rest of the world. Because the European Union is, in fact, the result of a project for peace that brought together nations emerging from the ruins of the Second World War. It was the European Union that united them in peace around the values of respect for human dignity, freedom, democracy, justice, rule of law and respect for human rights.''"


 
:Merci Olsson, of Nobel Med, congratulating President Barroso on the award of The Nobel Peace Prize t the European Union, 12 October 2012.
 
|}
 
 
====Accountable effects====
Public expenditure may be expected to affect a country's accounting aggregates such as its  [[gross national product]] and its rate of economic growth. Investment in the infrastructure may be expected to affect transport costs, and the maintenance of publicly-owned assets may be expected to affect their future running costs. Spending on health and education may be expected to affect future output as a result of its effect upon [[human capital]],  and there is some evidence to suggest that reductions in income inequality resulting from social expenditure can increase [[social capital]]<ref>Kawachi, Kennedy, Lochner and Prothrow-Stith. ''Social Capital, Income Inequality, and Mortality'', American Journal of  Public Health. 1997 Sep;87(9):1491-8.[http://www.ncbi.nlm.nih.gov/pubmed/9314802](abstract)</ref>, although it has also been suggested that it can have output-reducing consequences arising from its effects upon motivation.
 
====Non-accountable effects====
Public expenditure  also has effects that are not reflected in conventional measures of economic growth because they do not involve increases in measurable output. Social expenditure and spending on health and education, in particular,  generate welfare increases over and above those resulting from their effects on economic activity. No measures are available of the extent to which people
benefit from reduced anxiety, better health or more enjoyable leisure - all of which are increases in economic welfare.
 
====Net economic effect====
On the other side of the account are the foregone benefits from the employment of the same resources in other ways - some of which might have been used to generate physical output.
 
The assessment of the balance of benefits gained and loss is the subject of [[cost-benefit analysis]] - which it would be impracticable to perform on other than a disaggregated case-by-case basis. Moreover, the absence of a consistence  to measure  aggregate welfare that (as demonstrated by Arrow's ''[[impossibility theorem]]'')  limits the feasibility of drawing such a balance 
 
 
 
 
 
Under normal circumstances, private sector spending on government bonds is to some extent at the expense of spending on private sector bonds, with the consequence that some private-sector investment is "crowded out". To the extent that government bonds are used to finance consumption rather than investment, the total of the country's investment is diminished, leading in time to a loss of potential output. Crowding-out is seldom complete, however, but depends upon a range of factors including elasticities of demand for investment and for money <ref> See Frederick Fourie: ''How to Think and Reason in Economics'', Juta 2001</ref>. During a recession, crowding-out may to some extent be offset by  "crowding-in" as government spending makes up for the deficiency in private sector spending, leading to a recovery of demand and an increase in private-sector investment. The balance between crowding out under particular circumstances is a matter of controversy <ref> See "The Crowding-out Controversy" on page 248 of William Baumol and Alan Blinder: ''Economics, Principles and Policy'', Harcourt Bruce Jovanovich, 1979 </ref> .
 
 
<references/>

Latest revision as of 04:28, 22 November 2023


The account of this former contributor was not re-activated after the server upgrade of March 2022.


Index and Glossary

There is an index to the topics dealt with in the economics articles here, and a glossary of economic terms here.

See also the index to the politics articles .

methodology

"The European Union is something ... 
very precious, not only for us in Europe, but also for the rest of the world. Because the European Union is, in fact, the result of a project for peace that brought together nations emerging from the ruins of the Second World War. It was the European Union that united them in peace around the values of respect for human dignity, freedom, democracy, justice, rule of law and respect for human rights."
Merci Olsson, of Nobel Med, congratulating President Barroso on the award of The Nobel Peace Prize t the European Union, 12 October 2012.
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