European Parliament Library

A framework for efficient government investment, prepared by Andrew M. Warner

A framework for efficient government investment, prepared by Andrew M. Warner
Bibliography note
Includes bibliographical references
no index present
Literary Form
non fiction
Main title
A framework for efficient government investment
Nature of contents
Responsibility statement
prepared by Andrew M. Warner
Series statement
IMF working paper, 13/58
Welfare economics, scope and performance of government, externalities, public goods, cost-benefit analysis, subsidies economize on spending without losing effectiveness by modifying the conceptual framework guiding state expenditures. The familiar framework says that state intervention is justified when the spending provides public goods or when the intervention addresses externalities, provided the social return is above a threshold. This paper argues that another consideration needs to be brought into the mix - whether, in spite of the externalities, the private sector has an incentive to un
Table Of Contents
Cover; Table of Contents; I. Introduction; II. A Graph of Possible Investments; Figures; 1. Illustration of Private and Social Rates of Return for Investments; III. Decision Rules for State Investments; 2. Six Possible Investments - Which Should the Public Sector Do?; IV. Do Externalities Always Justify Intervetion?; 3. State Investments Should Focus on Region C; V. How to Efficiently Support the Private Sector; 4. Possible Contribution of Government Investment in Private Sector Projects; VI. Subsidies; 5. Possible Contribution of Demonstration Projects6. Potential Justification for SubsidiesVII. Policy Statements; VIII. Concluding Statements; IX. References