Expenditure Research notes
Expenditure research over the last four decades expanded on Pigous work by
identifying different types of externalities and the necessary government
interventions to correct externality problems.
(i)In general, government can ig
Internal Organizations for Standardization notes
R. E. B. Crompton drew up the first international standards body, the
International Electro-technical Commission, in 1906.
By the mid to late 19th century, efforts were being m
Purpose of International Standards notes
International standards may be used either by direct application or by a
process of modifying an international standard to suit local conditions.
The adoption of international standards results in the cre
Public Expenditure Growth notes
Theory of Public Finance and Public Expenditure Growth
Public finance can be studied by examining five theories:
1) The Theory of Revenue Extraction
2) The Theory of Externalities
3) The Theory of Public Goods and Natural M
Theorems of Welfare Economics notes
Two fundamental theorems in welfareeconomics explain how economic efficiency
could be achieved.
1stTheorem: states that in a competitivemarket where there is a large numb
er of buyers and sellers with no individual hav
1.2 Real Government Expenditures as Share of real GDP
Sources: FRED Database, NBER Macrohistory Database
State & Local
Shaded Areas indicate economic contracti
Figure 2.3 Tax Incidence of a Beer Sales Tax
With a $2/Beer Sales Tax/Beer Sold
Share of Tax Paid by Consumers
Share of Tax Paid by Producers
$2/Beer Sales Tax = $2
Operating Contributions to US Bank Capital
Net Income Retained after Charge-Offs & Cash Dividends as % of Capital
1992 thru 2006 Average = 0.2%
For 12 of the last 22 years,
continuing operations have actually
reduced Bank Capital
Austrian Business Cycle notes
Austrian Business Cycle Theory: Some Background
A. First appears in Mises' Theory of Money and Credit, combining Mises'
ideas on money, the natural interest rate theory of Wicksell, and
Bhm-Bawerk's capital theory.
Natural Rate of Interest notes
The Structure of Production and the Natural Rate of Interest
A. Neoclassical economists typically model capital as a single good.
Since Bhm-Bawerk, Austrians have taken a quite different approach:
1. Heterogeneity of capi
Paradox of Discretion notes
Time Consistency, I: The Paradox of Discretion
A. Time consistency literature that will now be explored is subtly
different from Public Choice approach, but also has interesting
similarities. In general, the time consistency
Targeting Strategy notes
What to Target
A. The rules/discretion debate: anything more to be said?
1. RE can be reconciled with either discretion or rules
I. but there is much more to say about rules than about
B. N.B. The same policies may
Case for Moderate Inflation notes
The Case for Moderate Inflation, II: Akerlof, Dickens, and Perry Simulation
A. Sets up model with monopolistic competition and heterogeneity of
Firm demand equation:
1. D is the demand faced by o