holcombe 01
TRANSCRIPT
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The Public Sector
CHAPTER
1
PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-2
What i the Public Sector!What i the Public Sector!
Reource allocated throu"h "o#ernmentReource allocated throu"h "o#ernment
U$S$ "o#ernment allocate about %&' o(U$S$ "o#ernment allocate about %&' o(
nation) reourcenation) reource Sumber da*a dialo+ai+an melaluiSumber da*a dialo+ai+an melalui
,emerintah,emerintah
Pemerintah -meri+a men"alo+ai+anPemerintah -meri+a men"alo+ai+ane+itar %&' dari umber da*a ne"arae+itar %&' dari umber da*a ne"ara
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-3
.oal (or Stud*in" Public Sector.oal (or Stud*in" Public Sector
EconomicEconomic E/,lain ho0 "o#ernment allocateE/,lain ho0 "o#ernment allocate
reourcereource
Etablih (rame0or+ to anal*1eEtablih (rame0or+ to anal*1e
"o#ernment acti#itie"o#ernment acti#itie
Tu2uan mem,ela2ari e+onomi e+tor ,ubli+:Tu2uan mem,ela2ari e+onomi e+tor ,ubli+:
3men2ela+an ba"aimana ,emerintah men"alo+ai+an3men2ela+an ba"aimana ,emerintah men"alo+ai+anumber da*aumber da*a
33etablihetablih +eran"+a +er2a untu+ men"analia +e"iatan+eran"+a +er2a untu+ men"analia +e"iatan
,emerintah,emerintah
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-4
Politic and EconomicPolitic and Economic
Economic acti#itie in(luence ,oliticalEconomic acti#itie in(luence ,olitical
deciiondeciion
Political deciion in(luence the econom*Political deciion in(luence the econom* The im,ortance o( the ,olitical deciion3The im,ortance o( the ,olitical deciion3
ma+in" ,rocema+in" ,roce 4e"iatan e+onomi mem,en"aruhi +e,utuan ,oliti+4e"iatan e+onomi mem,en"aruhi +e,utuan ,oliti+
4e,utuan ,oliti+ mem,en"aruhi e+onomi4e,utuan ,oliti+ mem,en"aruhi e+onomi
Pentin"n*a ,roe membuat +e,utuan ,oliti+Pentin"n*a ,roe membuat +e,utuan ,oliti+
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-5
Public Choice or Bene#olent 5e,ot!Public Choice or Bene#olent 5e,ot!
.o#ernment deciion are made collecti#el* in.o#ernment deciion are made collecti#el* in
democraciedemocracie
Political ,roce6Political ,roce6 notnot bene#olent de,ot6 determinebene#olent de,ot6 determine
reource allocationreource allocation
No aurance "o#ernment 0ill allocate reource e((icientl*No aurance "o#ernment 0ill allocate reource e((icientl*
4e,utuan ,merintah dibuat ecara +ole+ti( dalam4e,utuan ,merintah dibuat ecara +ole+ti( dalam
demo+raidemo+rai
Proe ,oliti+6Proe ,oliti+677777777$677777777$6 determinedetermine alo+aialo+ai
umber da*aumber da*a
Tida+ ada 2aminan ,emerintah a+an men"alo+ai+anTida+ ada 2aminan ,emerintah a+an men"alo+ai+an
umber da*a ecara e(iienumber da*a ecara e(iien
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-6
Mar+et (ailure doe not necearil* im,l* "o#ernmentMar+et (ailure doe not necearil* im,l* "o#ernment
inter#entioninter#ention Cannot aume ,er(ect "o#ernment im,lementation o(Cannot aume ,er(ect "o#ernment im,lementation o(
8o,timal9 ,olic*8o,timal9 ,olic*
Ma"nitude o( "o#ernment (ailure mut be com,ared toMa"nitude o( "o#ernment (ailure mut be com,ared to
i1e o( mar+et (ailurei1e o( mar+et (ailure 4e"a"alan ,aar4e"a"alan ,aar
Public Choice or Bene#olent 5e,ot!Public Choice or Bene#olent 5e,ot!
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-7
The -cti#itie o( .o#ernment
.o#ernment i com,ried o( thouand o(
"o#ernment unit
Three le#el: ederal
State
Local
Each le#el allocate di((erent le#el and
t*,e o( reource
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-8
The -cti#itie o( .o#ernment
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-9
Federal Expenditures
-ccount (or hal( o( ,ublic ector ,endin"
Three ma2or cate"orie o( "o#ernment
,endin"National de(ene
Human reource
Interet
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-10
ederal E/,enditure
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-11
ederal E/,enditure
5e(ene ,endin" ha declined ince
%;<=
O((et b* human reource ,endin"
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-12
ederal E/,enditure
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-13
ederal 5e(icit and Interet
E/,enditure 5e(icit (inanced b* "o#ernment bond
5ebt interet ubtantial ,art o( (ederal
bud"et
ederal bud"et&de(icit trend a
,ercenta"e o( .5P
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-14
ederal 5e(icit and Interet
E/,enditure
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-15
ederal .o#ernment Re#enue
Peronal income ta/
Social inurance re#enue
Cor,oration income ta/e E/cie ta/e6 etate and "i(t ta/e6
cutom dutie
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-16
.ro0th o( .o#ernment in >=th
Centur*
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1-17
International Com,arion
5i((icult to com,are "o#ernment i1e
acro countrie
U$S$ "o#ernment "ro0th relati#el* mall
com,ared to other countrie
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PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe1 18
International Com,arion