ecn115a final weeks 7-10
Terms
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- why market failures happen
- poor institutions, monopolies, external diseconomies (pollustion) economies (dam), infant industries
- what reduces impact of redistribtion with taxes
- lack of taxing luxury consumption, overreliance on rev. taxes, regressive excise tax, taxing food,
- how to implement market reforms
- stabilization = reduce government budget, adjust exchange rate, remove price controls, control wages, structural adjustment = make goods available, privitization, legal system, remove price adjustments, ensure comp.
- sustainability
- capacity to maintain consumption at current levels replacing natural capital with made capital ANS = S-Dm-Dn
- how to value environment
- direct uses consumptive - reef fishing, direct uses non consumptive recreation, indirect uses - shoreline protection, non use - cultural
- policy for dealing with environmental protection
- property rights, issue permits, taxation, government regulations
- Outward Orientation
- producing export for global market. Remove trade barriers, exhange rate to float, reduce costs, keep factor markets flexible start with simple labor intensive products learn by doing then do industrial products
- tax measures for reducing deficit
- increase in rates, new taxes, improve tax admin., reform entire tax structure
- Globalization
- circulation of goods services capital info. + efficiency, choices, reduced prices, - increased inequality, changes social values
- government doing to reach MDG
- debt relief, macroeconomic stability = low inflation, productvity growth, open trade, increased public sector capacity