welvaartseconomie en overheids financien Flashcards
public sector
all bodies whose activities are largely financed from collective income (taxes and social security contributions).
normering
standardising
baumol-effect
because wages in the public sector do increase with those in the private sector, but labor productivity does not, increasingly higher collective (wage) expenditure is required for relatively less production of public services
allocatiefunctie
the government decides where the collective resources go… market failures (eg external effects) / democracy and political choices.
verdelingsfunctie
the government deals with income distribution…progressive taxes/income transfers: social security.
stabilisatiefunctie
the government ensures economic stability… monetary policy (ECB) / expenditure and investment: pro-cyclical and counter-cyclical policies.
non-exclusiviteit in collective goederen
you cannot restrict the use by another
non-rivaliteit in collectieve goederen
the benefit of one does not come at the expense of the benefit of the other
machtsposities (marktmacht)
counters monopolies and abuse of power
asymetric information
information is not equally distributed between (groups of) producers and consumers. Information about quality and composition of producers.
onevenredig (disproportionate) hoge kosten
- high research and development costs (R+D)
- high investment costs
- economies of scale
externe effecten
effects not reflected in the pricing (eg: negative effects of emissions). when effects are not properly reflected in the price, this leads to wrong allocation (too much or too little production or consumption)
scheve(skewed) inkomens-/vermogensverdeling (wealth sharing)
government intervention can be aimed at a desired income/wealth distribution
paternalisme
politicians may believe that citizens underestimate their interest in certain facilities
