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

Examine the reasons for a country to engage in free trade, Problem 1: i...

Problem 1: i) According to you the Central Electricity Board in Mauritius operates in which type of market structure? Justify your answer. ii) Compare and contrast a perfe

Health economics - derivation of the contract curve, Health Economics - der...

Health Economics - derivation of the contract curve: 01. Consider the Edgeworth box with the production of consumption goods B and health- investment goods I. (a) Briefly expl

Economic outcomes, Suppose that economic outcomes can be classified as eith...

Suppose that economic outcomes can be classified as either good or bad. Governments differ in ability and this affects the likelihood of good outcomes. There are two types of gover

Size maximizing, why-this-behavior-consistent-with-size-maximizing-governme...

why-this-behavior-consistent-with-size-maximizing-government

What is rational policy, Question 1: " Public policy gives one a better...

Question 1: " Public policy gives one a better understanding of what governments do, why they do what they do and what difference public policy makes to the lives and circumst

Valuation tool - production function approach, Normal 0 false ...

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

Public economics, explain the stages and various coordination mechanisms in...

explain the stages and various coordination mechanisms involved in policy process?

Identify the main purposes of its e-government website, QUESTION (i) ‘T...

QUESTION (i) ‘The area of E-Government encompasses three major domains. These domains address the problems that Government is too inefficient and ineffective; too selfserving a

Production, Types of production function

Types of production function

Uncertainty and the policy process, As we know now that in policy process, ...

As we know now that in policy process, policy outcome may differ from the social planner outcome not only because different policies may be chosen but because a given policies may

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