User:Nick Gardner /Sandbox: Difference between revisions

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The major component of the cost of public expenditure is the foregone benefit that could have been obtained from other uses of the resources involved. If the product or service could otherwise be provided under fully competitive conditions, its provision can be presumed to result on a net loss on the grounds that  a greater  benefit can be presumed to be foregone
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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 ''']].


but there can also be costs arising from the "crowding-out" of private-sector investment. It has been argued that when  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, however,  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> .
[[User:Nick_Gardner#Methodology|methodology]]


The quantification of the economic effects of public expenditure is subject to errors and  uncertainties arising from the practical difficulty of determining the preferences of those affected and the intellectual obstacles to the aggregation of their gains and losses of economic welfare<ref> See "The Social Welfare Controversy"[http://en.citizendium.org/wiki/Welfare_economics/Tutorials#The_social_welfare_controversy]</ref>. In contrast, social welfare is necessarily maximised, according to the theorems of [[welfare economics]], by market forces operating under conditions of ''perfect competition'' and ''flexible prices''. For those reasons, it is generally presumed that social welfare is reduced if the public sector controls the provision of   goods and services that could otherwise be supplied by the private sector.
{|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.
|}

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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