ECONOMIC POLICY FORMATION: THEORY AND IMPLEMENTATION (APPLIED ECONOMETRICS IN THE PUBLIC SECTOR)

Abstract:Public entrepreneurship is commonly understood as the outcome of the activities of a Schumpeterian political innovator. However, empirical research suggests that changes to a more efficient economic policy, even if it is known and technically easy to implement, are usually delayed. This is difficult to reconcile with Schumpeterian notions of public entrepreneurship. In this paper, it is argued that the attempt to transfer a Schumpeterian approach to the public sector is fundamentally flawed. Institutional checks and balances that characterize most modern liberal democracies make the strategy of bold leadership an unlikely choice for an incumbent. If change occurs, it occurs normally as a response to the fact that the status quo has become untenable. From a normative point of view, it is argued that if public entrepreneurship nevertheless occurs, it will often be associated with unwanted consequences. A dismantling of formal institutional checks and balances is therefore not reasonable.

‘Positive direct rule’: economic policy

No Solution ◽

10.7228/manchester/9780719096402.003.0009 ◽

2016 ◽

Author(s):

S.C. Aveyard

Keyword(s):

Economic Policy ◽

United Kingdom ◽

Great Britain ◽

Public Sector ◽

Northern Ireland ◽

Labour Government ◽

The Public ◽

The United Kingdom ◽

The Uk ◽

Positive Direct

This chapter looks at economic policy in Northern Ireland in the context of severe economic difficulties experienced by the UK as a whole. It shows how the Labour government sought to shield Northern Ireland from economic realities because of the conflict, increasing public expenditure and desperately seeking industrial investment. The level of desperation in this endeavour is illustrated through examples such as Harland & Wolff’s shipyards and the DeLorean Motor Company. The experience of the 1970s, and particularly under the Labour government, set the pattern for the following decades with a steadily increasing subvention from the rest of the United Kingdom and a growing dependence on the public sector, all at a time when the opposite trend took place in Great Britain.

Statistics on Differences in the Institutional Composition of the National Economy and Issues Related to its Harmonization

Statistics and Economics ◽

10.21686/2500-3925-2020-4-4-32 ◽

2020 ◽

Vol 17 (4) ◽

pp. 4-32

Author(s):

O. V. Morozov ◽

A. G. Biryukov ◽

M. A. Vasiliev

Keyword(s):

Economic Policy ◽

Public Sector ◽

Economic System ◽

National Economy ◽

The State ◽

Domestic Economy ◽

The Public ◽

Russian Economy ◽

State Participation ◽

Sectoral Composition

This article focuses on the assessment of the size of the public sector, which goes back to the assessment of the degree of state participation in the domestic economy and remains controversial. Such assessments are often carried out without the presentation of threshold criteria and without evaluation of its effectiveness and combination with other institutional sectors. At the same time, it is obvious that the ratio between the public and other (non-state) sectors refers to the issue of strategic importance, to the issue of the effectiveness of the country's economic system in its integrity, and therefore requires theoretical, methodological and practical resolution.The objectives of the research are: (1) to determine the relative scale and efficiency of the public sector functioning in the national economy, to establish minimum necessary and maximum possible values of its scale; (2) to determine the size and establish a measure of harmonious combination of institutional components of the domestic economy aimed at maximizing its efficiency.Materials and methods. Theoretical foundations of the research have been developed on the basis of the authors' preferences regarding the results of conceptual and applied developments of domestic scientists in the field of philosophy, mathematics, economics and sociology, as well as the practice of structural and spectral analysis in their subject areas. The analysis of parameters (indicators) of the state and other institutional sectors of the national economy was carried out (mainly) on the basis of statistical data of ROSSTAT for 2006-2016, materials of official reports and developments of analytical centers. The methodological basis of the research is formed by works on modular theory of society, public sector economy, and structural harmony of systems. Tabular methods of visualization of research results and statistical methods of source data processing were used. Standard packages of Microsoft Office application programs were used for solving research tasks.Results. It is shown that against the background of a decrease in relative resource capacity, the public sector over the period under review does not show an increase in the degree of government participation in the Russian economy. At the same time, performance indicators of the public sector did not show not only worse, but also worsening values, both as compared with the private sector and the economy as a whole. Criteria of minimum required and maximum possible scale of the public sector have been defined and it is shown that as of 2016 the integral indicator of the scale of the public sector of the Russian economy does not reach the minimum required value. A quantitative model for optimizing the sectoral composition of the national economy has been constructed. System solutions are proposed and a method for determining the share of institutional sectors in the structure of the national economy is given.Conclusion. The article deals with the issues of state participation in the economy, defines the scale and efficiency of the public sector in the national economy. It is noted that within the limits of maximally liberal and maximally ethical ideological statements the task of optimization of neither the size of the public sector of the national economy nor the harmonious combination of its sectoral composition find a satisfactory solution. The analysis of institutional composition of the national economy has been carried out and the way of optimization of its structure has been shown, the direction of the state economic policy on optimization of institutional structure of the national economy has been determined. Orientation of economic policy towards achievement of optimal structure (harmony) of economic system (as well as the very movement towards it) will create conditions not only for increase of its efficiency, but also will allow to satisfy economic needs of socially-professional groups to the fullest extent, and society as a whole will successfully develop.

Tourism Partnerships and Small Firms

The International Journal of Entrepreneurship and Innovation ◽

10.5367/000000007780007344 ◽

2007 ◽

Vol 8 (1) ◽

pp. 37-43 ◽

Cited By ~ 11

Author(s):

Rhodri Thomas

Keyword(s):

Public Policy ◽

Decision Making ◽

Public Sector ◽

Power Relations ◽

Small Firms ◽

Policy Formation ◽

Central Feature ◽

Economic Relations ◽

The Public ◽

Advanced Capitalist

Partnerships have been a central feature of the tourism public policy landscape in advanced capitalist countries for some time. The intuitively appealing argument is that, by sharing expertise and decision making, commitment to the local tourism project is ensured. By participating in partnership working, small firms – which are almost universally characteristic of the sector – are said to contribute to the form and competitiveness of the tourism offer. Drawing on a variety of sources, this paper argues that in most cases such assertions are misplaced because ‘partnerships’ organized by the public sector are often predicated on an inadequate conceptualization of small firms in tourism, fail to appreciate the importance and complexity of informal economic relations, and usually ignore the particular power relations at play in local tourism policy formation and change.

Economic Development and the Growth of Public Expenditures in Scandinavia, 1875–1965

Political Studies ◽

10.1111/j.1467-9248.1980.tb01231.x ◽

1980 ◽

Vol 28 (1) ◽

pp. 20-42

Author(s):

David Klingman ◽

B. Guy Peters

Keyword(s):

Public Policy ◽

Public Sector ◽

Policy Formation ◽

Rate Of Change ◽

Industrial Society ◽

Public Expenditures ◽

The Public ◽

Cast Doubt ◽

The Impact ◽

Over Time

This paper examines the sources of the growth of the public sector in Norway, Sweden, and Denmark from 1875 to 1965. The analysis focuses on variations over time and across the three Scandinavian countries in the elasticity of public expenditures to growth in GNP, and in the patterns of relationship between the rate of growth of expenditures as a proportion of GNP and the rate of change in various socioeconomic, political and institutional indicators, using correlation and regression analysis of annual change-rate data. The results cast doubt on the applicability to the Scandinavian context of Herber's adaptation of Wagner's Law of the growth of the public sector in industrial society. The results also cast further doubt upon the applicability to public policy formation of the Bull–Galenson hypothesis concerning differences among the Scandinavian countries in the impact of the timing and rate of their industrialization on the radicalness of their labor movements. The variations of public policy over time and space might be better explained by anti-depression and war-time spending and by certain aspects of organizational ‘learning’, such as the tendency for policy-making behaviour to adjust only slowly to changing conditions and the post-Keynesian effort to fine-tune the economy.

Marx and Keynes: from exploitation to employment

European Journal of Economics and Economic Policies Intervention ◽

10.4337/ejeep.2019.0048 ◽

2019 ◽

Vol 16 (2) ◽

pp. 260-271

Author(s):

Fritz Helmedag

Keyword(s):

Economic Policy ◽

Public Sector ◽

General Model ◽

Good Industry ◽

The Public ◽

Factors Influencing ◽

Labour Costs ◽

Unit Labour Costs ◽

Theory Of Value ◽

Sound Foundation

Marx's and Keynes's analyses of capitalism complement each other well. In a largely general model including the public sector and international trade it is shown that the labour theory of value provides a sound foundation to reveal the factors influencing employment. Workers buy ‘necessaries’ out of their disposable wages from an integrated basic sector, whereas the ‘luxury’ division's revenues spring from other sources of income. In order to maximize profits, the wage–good industry controls the level of unit labour costs. Ultimately, effective demand governs the volume of work. On this basis, implications for economic policy are outlined.

Marx and Keynes: from exploitation to employment

European Journal of Economics and Economic Policies Intervention ◽

10.4337/ejeep.2019.00048 ◽

2019 ◽

Vol 16 (16.2) ◽

pp. 260-271

Author(s):

Fritz Helmedag

Keyword(s):

Economic Policy ◽

Public Sector ◽

General Model ◽

Good Industry ◽

The Public ◽

Factors Influencing ◽

Labour Costs ◽

Unit Labour Costs ◽

Theory Of Value ◽

Sound Foundation

Marx's and Keynes's analyses of capitalism complement each other well. In a largely general model including the public sector and international trade it is shown that the labour theory of value provides a sound foundation to reveal the factors influencing employment. Workers buy ‘necessaries’ out of their disposable wages from an integrated basic sector, whereas the ‘luxury’ division's revenues spring from other sources of income. In order to maximize profits, the wage–good industry controls the level of unit labour costs. Ultimately, effective demand governs the volume of work. On this basis, implications for economic policy are outlined.

Two Paradigms of Economic Development in CEE Countries

Ekonomika ◽

10.15388/ekon.2004.17394 ◽

2004 ◽

Vol 68 ◽

Author(s):

Povilas Gylys

Keyword(s):

Economic Policy ◽

Economic Development ◽

Public Sector ◽

Negative Attitude ◽

Methodological Individualism ◽

Private Goods ◽

The Public ◽

Economic Reality ◽

Economic Goods ◽

Methodological Holism

The direction of economic development depends on the paradigmatic framework in which economic reality is perceived. In the framework of holistic paradigm also public and not only private goods are understood as economic goods. Correspondingly, the public sector is enclosed into economy. The individualistic approach presupposes reduction of economic reality to market and overtly or covertly negative attitude towards public sector as non-economic. The phenomenon of reflexiveness is present here. Methodological holism and methodological individualism give birth to different strategies of economic policy and finally lead to different outcomes of economic development.