Abstract This paper examines two contradictory quotations regarding the same economic scenario and questions why the markets should fear a predicted economic slowdown if company profits are growing strongly. The paper presents the answer in the form of the "Keynesian Aggregate Expenditure" model, which is the generic term for several graphical models used to analyze the basic components of Keynesian economics and to identify Keynesian equilibrium as the intersection of the aggregate-expenditures line and the 45-degree line.
From the Paper "In other words, if consumers are spending less, it is unlikely that companies will continue to spend more and thus the companies will have to let workers go to make up for the decrease in consumer demand. The Keynesian model of aggregate demand was introduced in the 1930's as a answer to the worldwide great depression that the global economy found itself spiraling into after years of boom and financial speculation. Keynes departed from his predecessors when he ?rejected the view of Adam Smith that, left alone, a market system generally functions well,? namely that the "invisible hand? works when consumer confidence is low.? (Schenk, 1997, "Activism")"
Abstract This paper is a case study on Bernard's New York Deli in Hawaii. The paper discusses how the owner of the deli is considering some creative financing to fund an expansion of his business. The problem, however, is that he is a risk taker and his bank and his advisors are against this decision.
From the Paper "Bernard Horowitz is the owner and operator of Bernard's New York Deli. He recently moved to a larger location. Business during the first three months was good, but he needs to expand to take full advantage of the new location. Specifically, Bernard wants to expand seating by fifty customers and purchase new equipment. He estimates that this expansion would cost ?. His bank will not lend him additional funds."
Tags: Bernards deli, case study, risk averse, marginally profitable, expansion, bank lines, discretionalryexpenditures, risk and reward, internally generated funds, corporate IOUs
Abstract This paper tests flypaper effect empirically using real expenditure data in state of Iowa and Georgia using the popular empirical expenditure specification. As a result of estimation, the writers finds that Iowa has the obvious flypaper effect, while Georgia does not. Section I is an introduction of the concepts at hand. Section II presents how flypaper effect leads to expansion effect on government expenditures graphically. Section III reviews traditional and current empirical literature on flypaper effect. Section IV simplifies the estimated expenditure function in order to show flypaper effect in Iowa and Georgia using 1990 data set. Section V investigates somewhat puzzling results in Georgia based on derivation of elasticities of expenditure with regard to income and intergovernmental grants. Section VI contains the summary and conclusion.
From the Paper "I. Introduction In providing a rationale for the observation that an increase in lump-sum governmental aid effects a larger increase in local government expenditures than an equivalent increase in residential incomes does, economists have offered the explanations for the so-called "flypaper effect" of state and local public finance. This paper aims to test flypaper effect empirically using 1990's expenditure data in state of Iowa and Georgia. According to Bocherding and Deacon (1982), Bergstrom and Goodman (1983), the popular empirical expenditure specification in local public finance is ln E = b0 + b1 In M + b2 ln TS + b3 ln(TS * A) + b4 ln N + b5 ln D + v, where E is total general expenditure, M is median household income, TS is tax share, which property tax divided by gross property tax base, A is an intergovernmental aid receipts from federal and state government, N is jurisdiction population, D is population density, and v is a stochastic error. Since model specification is log-linear form, b coefficients show an elasticity of expenditure with regard to the corresponding explanatory variables. Interestingly, the estimated expenditure functions of Georgia and Iowa, respectively, have a crucial difference of their coefficients of governmental aids and incomes. In case of Iowa, it is easy to show "flypaper effect" since b3(0.77) is larger than b1(0.29). However, in Georgia, b3(0.19) is smaller than b1(0.28), suggesting that the effect of money income on expenditure is greater than that of aids. It is a contradiction of "flypaper effect" in Georgia. In order to verify the puzzling results in Georgia, this paper scrutinizes b coefficient. Since b1 and b3 represents an elasticity of expenditure with regard to income and intergovernmental aid, respectively, the more information on the means for county data in Georgia is needed for verifying flypaper effect. As a result of derivation, Georgia also has the significant flypaper effect as well as Iowa does. The discussion is organized as follows. Section II presents how flypaper effect leads to expansion effect on government expenditures graphically. Section III reviews traditional and current empirical literatures on flypaper effect. Section IV simplifies the estimated expenditure function in order to show flypaper effect in Iowa and Georgia using 1990 data set. Section V investigates somewhat puzzling results in Georgia based on derivation of elasticities of expenditure with regard to income and intergovernmental grants. Section VI contains the summary and conclusion. "
Abstract The paper provides statistics on the United States' growing healthcare expenditures including those of Medicare, Medicaid, prescription drug spending, nursing home spending and home health spending. The paper reveals that since these expenditures increase year by year, it is obvious that population's state of health is only getting worse. The paper asserts that increasing health care expenditures and funding will not solve the problem, rather the government and population should increase their investment in prevention.
From the Paper "United States' healthcare expenditures in 2005 reached $2 trillion total, and $6,697 per person. Healthcare expenditures increased 6.9% from 2004, accounting for the third consecutive year of deceleration. In the previous years, percentage increase values were the following: 7.2% in 2004, 8.1% in 2003, and 9.1% in 2002. These total healthcare expenditures growth that seems to be following a descending direction are due to lower growth in prescription drugs expenditures (CMS, 2007).
"Also, healthcare expenditures account for 16% of GDP, after a 0.1% increase. This increase is due to the 6.3 economic growth rate. This is a significant value for the country's economic development."
Tags: Medicare, Medicaid, prescription, drugs, nursing, home
Abstract One of the functions of the government is to maintain stability in the economy and create an environment conducive for economic growth. The paper discusses the differing roles of the government from supply side and demand side perspective. In supply side economics, the government may reduce tax rates to create incentives for households to save and for business to invest. In demand side economics, the government may increase its expenditure level. The paper shows how both have the effect of increasing national output. The writer states that government expenditure, however, depends on revenues, the level of which is determined by the tax policy in place.
From the Paper "Supply side economics adheres to the idea that cuts in tax rates will lead to increase in potential GNP (Taylor, 1995, p. 549) Supply side economists claim that tax cuts have incentive effects on savings, investment and labor supply. (Dornbusch & Fischer, 1990, p. 697) Lower tax rates mean less tax on capital gains or asset earnings and this encourages people to save. A rise in savings increases the supply of financial capital or credit leading to a decrease in interest rates, the price of capital. This stimulates investment thereby creating jobs. At the same time, lower tax rates mean higher after-tax income or disposable income for workers, so reductions in tax rates encourage them to work more. This results to an increase in labor supply. Together with the rise in investments, this leads to an increase in production activities in the country boosting the national output and eventually expanding the tax base. "
Abstract This paper examines the functioning of the federal budget process and explores the barriers involved. The paper explains that federal budgeting can also be split up into its basic standards of activity and measurement. The expenditure process involves three different stages of budget authorization, obligation, and outlays. The paper discusses the various parties involved in decision-making regarding the federal budget from Congress to the president. The laws pertinent to the federal budget process are presented in the paper. The paper contends that the federal budgetary procedure is required to endorse specific and apparent information on budgetary alternatives, to provide the lawmakers with a structure for arriving at agreeable conclusions on expenditure and receipt strategies, and to facilitate those policies to be implemented.
From the Paper "As is with any complicated strategy, the federal budgeting can also be split up into its basic standards of activity and measurement. The expenditure process involves three different stages of budget authorization, obligation and outlays. The Budget authority is bestowed by the Congress and President within the legal framework. It generates the legal base for federal units to make the financial responsibilities enforceable in terms of the obligations. The activities of the federal agencies in form of executing contracts, appointment of personnel and executing orders for goods and services give rise to generation of such obligations. The outlays follow when the obligations are settled down. The outlays are normally in shape of the checks, electronic fund transfers and other payments effected to by the Treasury Branch. The budget authorities mostly are provided to the agencies every year being excerpted from the legislations made during the previous Congresses. The funds are provided without the legislation by the Congress. (Keith, 1996)"
Abstract This paper uses an aggregate expenditure model to explain the impact of the housing boom on investment and consumption spending. The paper presents a multiplier analysis to explain the increase in GDP consequent upon the rise in spending. Assuming that the housing boom has created an inflationary gap, the paper explores the aggregate expenditure model to explain this gap and then explains how fiscal policy could be used to eliminate this gap.
From the Paper "In order to determine the relation between the housing boom and the rise of prices, which are probably caused by greater demand in the housing sector, all factors which may produce shifts in the production function must be analyzed. The model proposed by Keynes suggests that each monetary unit spent on something must be somebody's income. Therefore, the housing boom, which creates new jobs, not only in the construction industry, but also in related areas, such as the production of wood or steel, is bound to produce a corresponding rise in consumption demand, as a result of increased spending. A similar effect is incurred upon investment demand."
Abstract The paper discusses the high expenditure on health care in the United States. It explains that even though the expenditure by the health care industry has been very high, it has been unable to sufficiently meet the requirements of the young deprived, the jobless or the amateur worker. The paper reviews literature related to these issues. In conclusion, the writer states that medical health care has become a drama in which political actors manipulate it for their own good and that it will take a long time before the situation is able to be rectified.
Table of Contents:
Introduction with the Thesis Statement
Review of Related Literature
Conclusion
Bibliography
From the Paper "Moreover, the situation appears to be declining every day in the health care sector. Medical misconduct suits have arrived at an unsurpassed high. Every novel report of some possible health benison sets off a tedious and frequently haphazard charge to take on and execute that novel health breakthrough. Autoimmune, tense, as well as, ecological illnesses have attained to the magnitude of plague. Cancer is widespread. Americans have turned out to be obsessive for their health. Americans fervently fret on the subject of their healthcare reimbursements and whether the health-care structure will maintain them in time of problem. Those lucky enough to preserve health benefits fear that freedom to prefer their medical doctor is soon going to be taken away from them. Fear of becoming extinct has substituted the delight of living as Americans more and more anguish on the subject of their health."
Abstract This paper examines the financial planning and related public policy for the city of Charlotte, North Carolina. It provides a general outline of the city's budget, including expenditures, projects, funds, revenues and future spending plans.
Outline:
Expenditures, Encumbrances and Expenses
Capital Project, General, and Proprietary Funds
Analysis of Budget
Main Revenue Sources
Budgetary Levels
Long-range and Short-range Spending Plans
Largest Appropriations
Public policy: Short-range and Long-range
From the Paper "The main revenue sources for the city include taxes paid by business, taxes collected for property, licenses, transportation and tourism. Charlotte is one of the largest banking cities in the nation and is a central "hub" for many companies within the trucking industry. Additionally, Charlotte is home to three major professional sporting franchises and has a large manufacturing and construction base. Because Charlotte continues to grow significant with each passing year, the revenues from the growth associated with business are extensive. However, the growth of the city due to population also impacts the budget of the city and the funds that are required to operate many of the programs required to address the needs of the population."
Tags: budget, city, expenditures, encumbrances, expenses, policy
Abstract This paper explains that, beginning in the early 1990s, India began to redirect its political and economic apparatus towards a more free-market orientation, which has resulted in a cycle of remarkable growth and expansion. The author points out that, beginning in 1991, political leaders ended the traditional License Raj economic model, which resulted in monopolistic behavior and stifled foreign direct investment. The paper relates that some of India's economic expansion has been attributed to its insistence on expanding public expenditures within the market. The author points out that India deems all public expenditure to be development related and views this type of investment as a requirement rather than a socially driven discretionary investment. The paper reports that a value added tax (VAT), other tax code adjustments and a fully convertible currency were introduced.
Table of Contents:
Introduction
Initial Reforms
Market Liberalization
Current Economic Status
From the Paper "The country's revenue expenditures have increased across some spending segments by as much as 400% between 1990 and 2004 and this spending has continued to fuel economic growth. These large spending and investment packages are achievable because of the market reforms made during 1991. While much of India's population that exceeds 1b individuals is classified as impoverished, it still represents one of the largest tax bases in the world after China. Such a large potential tax base was going relatively untouched until 1991 when the tax codes and collection apparatus procedures were also reformed."
Tags: free-market, license raj economic model, public expenditure, currency, tax
Abstract The paper explains the City of Norfolk's approach to capital budgeting and critically examines the quality of the 2008 budget presentation. The paper outlines the key proposals and goals for the FY 2008 budget and reveals the total revenues and expenditures. The paper then proposes a new budget that will reflect a twenty percent decrease over the last year's figures. The paper includes an analysis of the situation and recommendations for the required budgetary cuts.
Outline:
Part I: Budget Format and Approach
Executive Proposals and Goals
Revenues and Expenditures Public Services Costs
Summary
Part II: Overview of the Department Budget
Other Recommendations
Obstacles to Alternatives
Recommendations
From the Paper "Like many cities of similar size, the City of Norfolk uses a modified accrual basis for their budgeting and accounting (p. 9). This method allows expenditures to be recorded when the liability is incurred. For instance, purchase orders and contractual commitments are recorded as expenditures when they are executed (p. 9). However, revenues are recorded similar to a cash basis. They are recorded as soon as they are measurable and available (p. 9). This accounting method is based on known and foreseeable expenses in the future."
Abstract This paper explains if accounts and financial statements are not maintained, then a check on the company's profit and loss or simple money expenditures cannot be analyzed. The author points out that, even though a check on an organization's financial statement is kept by the accounts department, it is important that the managers understand and keep a check on these reports. The paper relates that members of a health care organization can make use of the guidelines put forward by the AICPA to evaluate the financial statements.
From the Paper "Healthcare organizations deal with a huge mass of people every day. The cash flow statements, the profit and loss account and the balance sheet unveil the potency and feebleness of such organizations. Budgeting can be easily accomplished with the help of financial statements. Budgeting allows healthcare organizations to plan and utilize people's resources, productive aptitude and finance to the fullest."
Abstract The scope of this paper is to identify ten individual independent variables, such as economic or industrial growth and to test their significance in the prediction of variance in the percent defense expenditure within individual nations throughout the international community, through correlation to the dependent variable Percent GDP Army.
Outline
Introduction
Statistical Analysis of Variable Correlations
Hypotheses and Findings
Conclusion
From the Paper "An individual nation's defense expenditures can be clearly correlated to a variety of domestic and international factors. The importance of discovering such correlations has been clearly evidenced through the repetitive events of global history. In the event the international community becomes able to accurately monitor and predict defense expenditures by individual nations in a timely and efficient manner, future conflicts, humanitarian crises, and global economic depressions may be effectively identified prior to occurrence and effectively circumvented."
Addresses the changes that the Omani economy underwent within a 25-year period and the challenges, such as oil depletion, insufficient work force and un-diversified economy that the country is currently facing.
Abstract The accession to the throne of sultan Qaboos ibn Said inn 1970 marked the beginning of considerable political and economic changes in Oman. Realizing the importance of internal and local stability, the sultanate started coming out of its political isolation, forming alliances in the Middle East and maintaining good diplomatic relations with the western powers. Overall, sultan Qaboos supported a non-aligned foreign policy, determined by what is of best interest to the country. Alongside, the regime gradually modernized the country in an effort to develop the economy and attract foreign investment. Although infrastructural improvements, social changes, and economic reforms were progressively undertaken, the country still faces the challenges of its overdependence on oil and shortage of Omani labor force. As Omani oil reserves are depleting, the transition from rentier to a more diversified economy is imperative to the future economic growth of the sultanate. This paper explores the economy of Oman during the period of 1980-2004 and how it was affected by the regime's internal reforms, its involvement in the resolution of the local conflicts and its diplomatic ties with the U.S.
Paper Outline:
Introduction
Oman and the Gulf Cooperation Council
Gulf War: Consequences
Iran-Iraq War and its Impact on Omani Economy and Political Stability
Omani Economy: Problems and Challenges
Social Reforms
Foreign Investment
U.S.- Omani Relations
Military Expenditure Conclusion
Bibliography
From the Paper "The signing of the Facility Access Agreement secured the positions of the regime, provided American economic support and expertise, and was crucial to establishing peace during the Gulf War. Also, Omani military alliance with the U.S. allowed the sultanate to divert some of the military spending and undertake more social reforms. Economically, the sultan introduced crucial reforms to make Oman an attractive investment destination. However, in order to fully exploit the foreign investment opportunities, the sultanate should fight the high level of corruption and introduce more transparency in the processes of privatization and business attraction."
Abstract This paper explains that the Indian Central Government Health Scheme was launched in 1954 with a dual purpose of providing a comprehensive medical care facility to the Central Government employees and pensioners including their families and to do away with the cumbersome system of medical reimbursement; however, the purposes for which the scheme was launched appear to have been lost given the introduction of private medical care. The author investigated 364 cases, as a random sample from the Postal & RMS (Railway Mail Service), located in the NCR of Delhi and the city of Bangalore, by analyzing the financial implications of treatment at various types of hospitals: Government (GOV), Private Recognized (RP) and Private Unrecognized (UP) hospitals under the CGHS scheme. The paper reports that the percentage satisfaction level for IP treatment in private hospitals is greater than the government hospitals and investigates extensively possible private insurance schemes involving the government. Many tables and charts.
Table of Contents
Research Objectives
A Brief Overview of Functioning of CGHS
Recognition of Private Hospitals by CGHS
Facilities Provided to Serving Employees and their families
Facilities Provided to Central Government Pensioners
Other Facilities in Non-emergency Cases
Emergency Care
Rates of Subscription and Recoveries
Findings
Quantitative Data
Treatment in Different Categories of Hospitals
The Claim Spread
Out-of-Pocket Expenses based on Hospital Types.
Out-of-Pocket Expenses based on Disease Types
In-Patient and Outpatient Treatment: Delhi V/S Bangalore
Comparative Cost of Treatment
Budgetary Allocation, Expenditure and Cost of Treatment-Scheme-Level
Outpatient Cost of Card (Pensioners Included)
Inpatient Cost of Pensioner Card
Average Total Cost of Card for Pensioners
Average Total Cost of Card: Serving Employees
Welfare of Employees and Subsidy-Scheme Level
Implications for the Central Government Health Scheme
Employee Benefit-Case of DOP
Qualitative
ICICI Lombard
Mediclaim or Hospitalization Benefit Insurance Policy
Abbreviations
From the Paper "Budgetary allocation to CGHS scheme is made every year under various heads based on projected requirements of the CGHS dispensaries. There is no analysis of performance of the dispensary or review of utilization of funds while making fresh allotment of funds. Their utilization neither is monitored nor is any expenditure-benefit analysis carried out. Although the scheme was introduced with welfare angle, it is no denying the fact that the money allocated to the dispensaries should be properly utilized and the benefits should overweigh the expenditure. In the present practice, there is no monitoring mechanism to ensure efficient utilization of funds by the dispensaries, one of the reasons for the same being non-maintenance of financial/cost records properly."
