The Government Spending Multiplier in a Model with the Cost Channel

2015 ◽  
Author(s):  
Salem M. Abo-Zaid
Keyword(s):  
Government Spending ◽  
Cost Channel ◽  
The Government ◽  
The Cost

THE GOVERNMENT SPENDING MULTIPLIER IN A MODEL WITH THE COST CHANNEL

2020 ◽  
pp. 1-30 ◽  
Author(s):  
Salem Abo-Zaid
Keyword(s):  
Interest Rate ◽  
Government Spending ◽  
Marginal Cost ◽  
Real Interest Rate ◽  
The Other ◽  
Nominal Interest Rate ◽  
Liquidity Trap ◽  
Cost Channel ◽  
The Government ◽  
The Cost

This paper studies the government spending multiplier in the presence of the cost channel of the nominal interest rate. I find that the spending multiplier of normal times declines markedly when this channel is introduced. The rise in government spending leads to a rise in the nominal interest rate and, with the cost channel, to a rise in the marginal cost and inflation. In turn, this leads to a bigger rise in the nominal interest rate and the expected real interest rate, hence a lower multiplier, than in a model that abstracts from the cost channel. On the other hand, in a liquidity trap, the cost channel makes the spending multiplier larger. Therefore, by ignoring the cost channel, the spending multiplier is overestimated in normal times and underestimated during liquidity trap episodes. Since liquidity traps are rare, however, the spending multiplier is mostly lower than in previous estimates.

Fiscal Policy and Government Spending

2010 ◽  
Vol 214 ◽  
pp. F61-F66 ◽  
Author(s):  
Ray Barrell ◽  
Simon Kirby
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Future Generations ◽  
Coalition Government ◽  
The Third ◽  
Long Run ◽  
Full Capacity ◽  
Government Deficit ◽  
The Government ◽  
The Cost

In June the Coalition Government produced a budget that aimed to reduce the government deficit quickly. The plan was based mainly on cuts in current expenditure and reductions in transfers to individuals. There are four possible reasons for reducing the deficit, and all have been used to justify the policy. The first reason might be that the cost of borrowing is currently too high, and the second could be that if deficits persist the markets could lose confidence and the cost of borrowing would rise. The third reason might be that we have to reduce the debt stock in order that we prepare for the next crisis, whilst the fourth, and perhaps most persuasive in the long run, is that it is unfair to borrow so much and therefore reduce the consumption of future generations. If either of the first two had merit there would be a case for swift consolidation, whilst if the third or fourth predominate, we should not be in any rush to act until output is nearer full capacity.

The cost-effectiveness of insulin analogs and regular insulin for diabetes control: a case study in Iran

2020 ◽  
Vol 33 (4/5) ◽  
pp. 323-331
Author(s):  
Mohsen pakdaman ◽  
Raheleh akbari ◽  
Hamid reza Dehghan ◽  
Asra Asgharzadeh ◽  
Mahdieh Namayandeh
Keyword(s):  
Cost Effectiveness ◽  
Cost Effective ◽  
Regular Insulin ◽  
Diabetes Control ◽  
Diabetic Patients ◽  
Insulin Analogs ◽  
Content Type ◽  
Patients With Diabetes ◽  
The Government ◽  
The Cost

PurposeFor years, traditional techniques have been used for diabetes treatment. There are two major types of insulin: insulin analogs and regular insulin. Insulin analogs are similar to regular insulin and lead to changes in pharmacokinetic and pharmacodynamic properties. The purpose of the present research was to determine the cost-effectiveness of insulin analogs versus regular insulin for diabetes control in Yazd Diabetes Center in 2017.Design/methodology/approachIn this descriptive–analytical research, the cost-effectiveness index was used to compare insulin analogs and regular insulin (pen/vial) for treatment of diabetes. Data were analyzed in the TreeAge Software and a decision tree was constructed. A 10% discount rate was used for ICER sensitivity analysis. Cost-effectiveness was examined from a provider's perspective.FindingsQALY was calculated to be 0.2 for diabetic patients using insulin analogs and 0.05 for those using regular insulin. The average cost was $3.228 for analog users and $1.826 for regular insulin users. An ICER of $0.093506/QALY was obtained. The present findings suggest that insulin analogs are more cost-effective than regular insulin.Originality/valueThis study was conducted using a cost-effectiveness analysis to evaluate insulin analogs versus regular insulin in controlling diabetes. The results of study are helpful to the government to allocate more resources to apply the cost-effective method of the treatment and to protect patients with diabetes from the high cost of treatment.

scholarly journals Overcoming Adverse Selection: How Public Intervention Can Restore Market Functioning

2012 ◽  
Vol 102 (1) ◽  
pp. 29-59 ◽  
Author(s):  
Jean Tirole
Keyword(s):  
Mechanism Design ◽  
Adverse Selection ◽  
Welfare Cost ◽  
Public Intervention ◽  
The Government ◽  
The Cost

The paper provides a first analysis of market jump starting and its two-way interaction between mechanism design and participation constraints. The government optimally overpays for the legacy assets and cleans up the market of its weakest assets, through a mixture of buybacks and equity injections, and leaves the firms with the strongest legacy assets to the market. The government reduces adverse selection enough to let the market rebound, but not too much, so as to limit the cost of intervention. The existence of a market imposes no welfare cost. (JEL D82, D83, G01, G31, H81)

scholarly journals A cost analysis to address issues of budget constraints on the implementation of the indoor residual spray programme in two districts of Maputo Province, Mozambique

2021 ◽  
Vol 20 (1) ◽  
Author(s):  
Neide Canana
Keyword(s):  
Sensitivity Analysis ◽  
Cost Analysis ◽  
Financial Analysis ◽  
Indoor Residual Spraying ◽  
Economic Cost ◽  
Cost Information ◽  
Financial Cost ◽  
Provider Perspective ◽  
The Government ◽  
The Cost

Abstract Background It is frequently said that funding is essential to ensure optimal results from a malaria intervention control. However, in recent years, the capacity of the government of Mozambique to sustain the operational cost of indoor residual spraying (IRS) is facing numerous challenges due to restrictions of the Official Development Assistance. The purpose of the study was to estimate the cost of IRS operationalization in two districts of Maputo Province (Matutuíne and Namaacha) in Mozambique. The evidence produced in this study intends to provide decision-makers with insight into where they need to pay close attention in future planning in order to operationalize IRS with the existent budget in the actual context of budget restrictions. Methods Cost information was collected retrospectively from the provider perspective, and both economic and financial costs were calculated. A “one-way” deterministic sensitivity analysis was performed. Results The average economic costs totaled US$117,351.34, with an average economic cost per household sprayed of US$16.35, and an average economic cost per person protected of US$4.09. The average financial cost totaled US$69,174.83, with an average financial cost per household sprayed and per person protected of US$9.84 and US$2.46, respectively. Vehicle, salary, and insecticide costs were the greatest contributors to overall cost in the economic and financial analysis, corresponding to 52%, 17%, and 13% in the economic analysis and 21%, 27%, and 22% in the financial analysis, respectively. The sensitivity analysis was adapted to a range of ± (above and under) 25% change. There was an approximate change of 14% in the average economic cost when vehicle costs were decreased by 25%. In the financial analysis, the average financial cost was lowered by 7% when salary costs were decreased by 25%. Conclusions Altogether, the current cost analysis provides an impetus for the consideration of targeted IRS operationalization within the available governmental budget, by using locally-available human resources as spray operators to decrease costs and having IRS rounds be correctly timed to coincide with the build-up of vector populations.

Accountability and the Media

2014 ◽  
Vol 652 (1) ◽  
pp. 206-221
Author(s):  
Anton Harber
Keyword(s):  
South African ◽  
News Media ◽  
Media Access ◽  
Political Interference ◽  
The Face ◽  
Public Broadcaster ◽  
The Media ◽  
The Government ◽  
The Cost ◽  
Poor Management

Two decades of contestation over the nature and extent of transformation in the South African news media have left a sector different in substantive ways from the apartheid inheritance but still patchy in its capacity to fill the democratic ideal. Change came fast to a newly open broadcasting sector, but has faltered in recent years, particularly in a public broadcaster troubled by political interference and poor management. The potential of online media to provide much greater media access has been hindered by the cost of bandwidth. Community media has grown but struggled to survive financially. Print media has been aggressive in investigative exposé, but financial cutbacks have damaged routine daily coverage. In the face of this, the government has turned its attention to the print sector, demanding greater—but vaguely defined—transformation and threatened legislation. This has met strong resistance.

Criteria for the Evaluation of Social Policy Effectiveness of States

2014 ◽  
pp. 87-97
Author(s):  
V. Sautkina
Keyword(s):  
Developed Countries ◽  
Legal Aspects ◽  
Educational Services ◽  
State Control ◽  
National Education ◽  
Current State ◽  
The Usa ◽  
The Government ◽  
High Level ◽  
The Cost

The following article is devoted to the study of current state of national education and healthcare systems. The cost of services in these areas constantly increases, there for even developed countries are forced to make significant efforts in order to maintain earlier achieved results. Due to this reason countries entered into the period of constant reforms with the purpose of maintaining that high level of health and educational services for all segments of population with a constant reduction of its volume of financing. The legal aspects of these changes are requiring manifestation of the will of politicians in order to overcome the opposition of parties which are defending their interests. As an example, the main opponents of the healthcare reforms proposed by Barak Obama in the USA are Republicans who are concerned about a significant increase of a state control over the entire national insurance system. The author comes to the conclusion that only joint actions of the government and every segment of population might actually improve the quality of medical and educational services.

PRESIDENT'S MESSAGE

PEDIATRICS ◽  
1962 ◽  
Vol 30 (1) ◽  
pp. 157-158
Author(s):  
Carl C. Fischer
Keyword(s):  
Whooping Cough ◽  
American People ◽  
Practice Of Medicine ◽  
The Subject ◽  
The Government ◽  
The Individual ◽  
The Cost ◽  
Federal Assistance ◽  
Children Under 5

REGARDLESS of how we, as individual physicians, may feel about the role of the federal government in the individual practice of medicine, the time has long since passed when we can afford the luxury of ignoring it. In past years the influence of the government on medicine has been mostly in general areas and perhaps least of all in that of pediatrics; but under the present administration there has been a decided change. For this reason it seems necessary to me to call to the attention of all Fellows of the Academy the particular items in President Kennedy's message of February 26, 1962, which relate specifically to the practice of Pediatrics. These may be considered to be three in number: The first of these dealt with the subject of immunization. On this topic President Kennedy said: I am asking the American people to join in a nationwide vaccination program to stamp out these four diseases (whooping cough, diphtheria, tetanus, and poliomyelitis) encouraging all communities to immunize both children and adults, keep them immunized and plan for the routine immunization of children yet to be born. To assist the states and local communities in this effort over the next 3 years, I am proposing legislation authorizing a program of federal assistance. This program would cover the full cost of vaccines for all children under 5 years of age. It would also assist in meeting the cost of organizing the vaccination drives begun during this period, and the cost of extra personnel needed for certain special tasks.

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