Structural interdependence and policy coordination, Public Economics

Assignment Help:

The structural interdependence, in fact, forms the basis for the policy maker's choice behaviour for policy or policy mixes. The spectrum formed by various policy mixes depends on the levels of coordination between agents. Paul Rosenstein-Rodan declared as early as in 1943, that economic development could be thought as massive coordination failure, in which several investments do not occur simply because other complementary investments are not made, and there latter investments are not forthcoming simply because the former are missing. Thus we may conceive two Equilibria under the very same conditions, one based on positive expectations in one sector due to realizations of various policy outcomes in other sectors and other involving frustration and persistent stagnation in which frustration due to negative policy outcome in one sector spill over to the other sector.

This serves as potential explanation why similar policy instruments in similar economics behave differently and give rise to different or dissimilar policy outcomes. It, in fact, depends on the nature of belief and expectations held by agents in different sectors concerning the actions of each other.


Related Discussions:- Structural interdependence and policy coordination

Summary of natural resource economics, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

TAXATION, what are the taxations most important of Colombia country

what are the taxations most important of Colombia country

Green accounting, Normal 0 false false false EN-IN X-...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Case for the market - pigovian analysis, Case for the Market   With  th...

Case for the Market   With  the objective of maximising total value of output  focused on  observing real  factors of production, through the  logical  'tool  of marginal produ

Explain how the mobile industry is enabling economic growth, Question: ...

Question: (a) Jeffrey Sachs, Columbia University's Earth Institute Development Guru, opines that the humble mobile phone is "the single most transformative tool for developmen

Policy process mechanism, explain the stages and various coordination mecha...

explain the stages and various coordination mechanisms involved in policy processes

Policy frameworks and decision process, With a background from the previous...

With a background from the previous section we now study some of the critical characteristics of policy process. You have already studied earlier various technical theories relatin

Pareto improvement, 1. is pareto improved demonstrated using the edgeworth ...

1. is pareto improved demonstrated using the edgeworth box daigram?

Consumer surplus related to the price elasticity of demand, QUESTION: a...

QUESTION: a) How do returns to scale and returns to factor affect the shapes of the AC in the Long-run and short-run respectively? b) "Standard of living has to be measure

Prepare a news release announcing the launch of network, The news release i...

The news release is the ‘granddaddy' of public relations writing vehicles. (a) As a PR student, show the main points you would consider when attempting to write an effective ne

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd