long-term economic growth and supply-side policies
TRANSCRIPT
![Page 1: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/1.jpg)
Long-term EconomicLong-term EconomicGrowth andGrowth and
Supply-side PoliciesSupply-side Policies
![Page 2: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/2.jpg)
Long-term Growth and Supply-side PoliciesLong-term Growth and Supply-side Policies
Economic Growth in the Long run
Economic Growth in the Long run
![Page 3: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/3.jpg)
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Growth over the decades
long-term growth versus short-term fluctuations
Growth over the decades
long-term growth versus short-term fluctuations
![Page 4: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/4.jpg)
30
40
50
60
70
80
90
100
110
120
1950 1960 1970 1980 1990 2000
Real
GD
P (
1995 =
100)
UK GDP at market prices (1995=100)UK GDP at market prices (1995=100)
![Page 5: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/5.jpg)
30
40
50
60
70
80
90
100
110
120
1950 1960 1970 1980 1990 2000
Real
GD
P (
1995 =
100)
UK GDP at market prices (1995=100)UK GDP at market prices (1995=100)
![Page 6: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/6.jpg)
Average annual percentage growth rateAverage annual percentage growth ratein GDP per person employedin GDP per person employed
![Page 7: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/7.jpg)
Average annual percentage growth rateAverage annual percentage growth ratein GDP per person employedin GDP per person employed
![Page 8: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/8.jpg)
Average annual percentage growth rateAverage annual percentage growth ratein GDP per person employedin GDP per person employed
![Page 9: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/9.jpg)
Average annual percentage growth rateAverage annual percentage growth ratein GDP per person employedin GDP per person employed
![Page 10: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/10.jpg)
Average annual percentage growth rateAverage annual percentage growth ratein GDP per person employedin GDP per person employed
![Page 11: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/11.jpg)
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 12: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/12.jpg)
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 13: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/13.jpg)
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 14: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/14.jpg)
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
increase in quantity of factors
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
increase in quantity of factors
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 15: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/15.jpg)
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
increase in quantity of factors
increase in productivity
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
increase in quantity of factors
increase in productivity
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 16: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/16.jpg)
Output per person employed in 2000relative to that in 1961
Output per person employed in 2000relative to that in 1961
![Page 17: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/17.jpg)
Productivity in selected countries, 1999 (UK = 100)Productivity in selected countries, 1999 (UK = 100)
![Page 18: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/18.jpg)
Productivity in selected countries, 1999 (UK = 100)Productivity in selected countries, 1999 (UK = 100)
![Page 19: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/19.jpg)
Productivity in selected countries, 1999 (UK = 100)Productivity in selected countries, 1999 (UK = 100)
![Page 20: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/20.jpg)
Productivity in selected countries, 1999 (UK = 100)Productivity in selected countries, 1999 (UK = 100)
![Page 21: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/21.jpg)
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national income
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national income
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 22: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/22.jpg)
K0
Depreciation (D)
Investment (I)
Steady-state outputSteady-state output
Capital stock (K)
Ou
tpu
t (Y
), In
vest
me
nt (
I), D
epre
cia
tion
(D
)
K1
Y1
Output (Y)
g
Y0
bI0
D0
O
c
f
a
![Page 23: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/23.jpg)
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 24: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/24.jpg)
Capital stock (K)
K1 K2
Y2
Y1
Y
D
I2
I1g
m
nh
Ou
tpu
t (Y
), In
vest
me
nt (
I), D
epre
cia
tion
(D
)
f
Effect of an increase in the rate of saving and investmentEffect of an increase in the rate of saving and investment
![Page 25: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/25.jpg)
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 26: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/26.jpg)
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
an optimum rate of saving?
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
an optimum rate of saving?
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 27: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/27.jpg)
Saving rate (%)
Co
nsu
mp
tion
O 100
a b
An optimum saving rateAn optimum saving rate
![Page 28: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/28.jpg)
Saving rate (%)
Co
nsu
mp
tion
C*
s*O 100
a
m
b
An optimum saving rateAn optimum saving rate
![Page 29: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/29.jpg)
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
an optimum rate of saving?
an increase in the workforce
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
an optimum rate of saving?
an increase in the workforce
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 30: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/30.jpg)
Technological progress
the effect on output
Technological progress
the effect on output
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 31: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/31.jpg)
Capital stock (K)
K1 K2
Y2
Y2
D
I2
I1g
p
nh
Ou
tpu
t (Y
), In
vest
me
nt (
I), D
epre
cia
tion
(D
)Effect of embodied technological progressEffect of embodied technological progress
Y1
Y1
f
![Page 32: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/32.jpg)
Technological progress
the effect on output
the steady-state growth path
Technological progress
the effect on output
the steady-state growth path
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 33: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/33.jpg)
Effect of technological progress on growth ratesEffect of technological progress on growth rates
Lower rateof technological
progress
Higher rateof technological
progress
Time
Out
put
![Page 34: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/34.jpg)
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 35: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/35.jpg)
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 36: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/36.jpg)
Effect of an increase in the saving rate,with a given rate of technological progress
Effect of an increase in the saving rate,with a given rate of technological progress
Time
Ou
tpu
t
Steady-stategrowth path 1
Actualgrowth path
Slope determinedby rate of
technological progress
![Page 37: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/37.jpg)
Steady-stategrowth path 2
Effect of an increase in the saving rate,with a given rate of technological progress
Effect of an increase in the saving rate,with a given rate of technological progress
Time
Ou
tpu
t
t1
Steady-stategrowth path 1
Rate of savingincreasesat time t1
Actualgrowth path
![Page 38: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/38.jpg)
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 39: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/39.jpg)
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
determinants of technological progress
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
determinants of technological progress
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 40: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/40.jpg)
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
determinants of technological progress
importance of institutional factors and incentives
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
determinants of technological progress
importance of institutional factors and incentives
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
![Page 41: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/41.jpg)
Supply-side PoliciesSupply-side Policies
Long-term Growth and Supply-side PoliciesLong-term Growth and Supply-side Policies
![Page 42: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/42.jpg)
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Supply-side policies and macroeconomic problems economic growth
unemployment
inflation
Market-based approach to supply-side policy market-orientated supply-side policies
Supply-side policies and macroeconomic problems economic growth
unemployment
inflation
Market-based approach to supply-side policy market-orientated supply-side policies
![Page 43: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/43.jpg)
AD
AS1
Q1O
P1
National output
Pri
ce le
vel
AS2
P2
Q2
Aggregate demand and supply: monetarist analysisAggregate demand and supply: monetarist analysis
![Page 44: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/44.jpg)
O
Unemployment (%)
Infla
tion
(%)
Un1Un2
Long-run Phillips curve: monetarist analysisLong-run Phillips curve: monetarist analysis
![Page 45: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/45.jpg)
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Supply-side policies and macroeconomic problems economic growth
unemployment
inflation
Market-based approach to supply-side policy market-orientated supply-side policies
neo-Austrian / libertarian school
Supply-side policies and macroeconomic problems economic growth
unemployment
inflation
Market-based approach to supply-side policy market-orientated supply-side policies
neo-Austrian / libertarian school
![Page 46: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/46.jpg)
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Keynesian approach to supply-side policy
Keynesian approach to supply-side policy
![Page 47: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/47.jpg)
O
AD1
National output
Pri
ce le
vel
AS1
AD2
Q1 Q2
AS2
Q3
Aggregate demand and supply: Keynesian analysisAggregate demand and supply: Keynesian analysis
![Page 48: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/48.jpg)
O
Unemployment (%)
Infla
tion
(%)
I
II
a
b
Phillips curves: Keynesian analysisPhillips curves: Keynesian analysis
![Page 49: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/49.jpg)
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Keynesian approach to supply-side policy
interventionist supply-side policies
Keynesian approach to supply-side policy
interventionist supply-side policies
![Page 50: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/50.jpg)
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Keynesian approach to supply-side policy
interventionist supply-side policies
'Third-Way' supply-side policies
Keynesian approach to supply-side policy
interventionist supply-side policies
'Third-Way' supply-side policies
![Page 51: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/51.jpg)
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Keynesian approach to supply-side policy
interventionist supply-side policies
'Third-Way' supply-side policies
The link between demand-side and supply-side policies
Keynesian approach to supply-side policy
interventionist supply-side policies
'Third-Way' supply-side policies
The link between demand-side and supply-side policies
![Page 52: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/52.jpg)
Market-orientated Supply-side Policies
Market-orientated Supply-side Policies
Long-term Growth and Supply-side PoliciesLong-term Growth and Supply-side Policies
![Page 53: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/53.jpg)
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
Varieties of market-orientated supply-side policies
Reducing government expenditure
Varieties of market-orientated supply-side policies
Reducing government expenditure
![Page 54: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/54.jpg)
Government expenditure (central plus local) as a percentage of GDP at market prices
![Page 55: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/55.jpg)
Government expenditure (central plus local) as a percentage of GDP at market prices
![Page 56: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/56.jpg)
Government expenditure (central plus local) as a percentage of GDP at market prices
![Page 57: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/57.jpg)
Government expenditure (central plus local) as a percentage of GDP at market prices
![Page 58: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/58.jpg)
Government expenditure (central plus local) as a percentage of GDP at market prices
![Page 59: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/59.jpg)
Government expenditure (central plus local) as a percentage of GDP at market prices
![Page 60: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/60.jpg)
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
![Page 61: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/61.jpg)
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
![Page 62: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/62.jpg)
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
![Page 63: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/63.jpg)
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
W0
Q0
N
Position withno taxes
yx
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
![Page 64: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/64.jpg)
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
Q1
N
Equilibriumwith taxes
W1
k1
b
TAX
a
e
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
![Page 65: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/65.jpg)
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
W1
Q1
N
Equilibriumwith taxes
a
b
k1
e
Pre-taxwage rate
(unit labour cost)
TAX
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
![Page 66: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/66.jpg)
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
W1
Q1
N
Equilibriumwith taxes
a
b
k1
e
Pre-taxwage rate
(unit labour cost)
After-taxwage rate
(`take-home’ wage)
TAX
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
![Page 67: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/67.jpg)
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
W1
Q1
N
Equilibriumwith tax cut
a
b
k1
e
Q2
fW2
k2
c
d
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
![Page 68: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/68.jpg)
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
W1
Q1
N
Equilibriumwith tax cut
a
b
k1
e
Q2
c
d fW2
k2
New reducedunemployment
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
![Page 69: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/69.jpg)
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
effects on employment
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
effects on employment
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
![Page 70: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/70.jpg)
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
effects on employment
Tax cuts for business
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
effects on employment
Tax cuts for business
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
![Page 71: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/71.jpg)
Reducing the power of labour Reducing the power of labour
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
![Page 72: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/72.jpg)
W1
O
Number of workers
Wa
ge r
ate
ASL
ADL
Q1
N
Position withunions: wagerate above the
equilibrium
Q2
a b c
Effect of reducing the power of labourEffect of reducing the power of labour
![Page 73: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/73.jpg)
O
Number of workers
Wa
ge r
ate
ASL
ADL
We
Qe
N
Union powerremoved:
wage rate atthe equilibrium
e f
Effect of reducing the power of labourEffect of reducing the power of labour
![Page 74: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/74.jpg)
Reducing the power of labour
Reducing welfare
Reducing the power of labour
Reducing welfare
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
![Page 75: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/75.jpg)
ASL2
The effect of a cut in benefits on the number unemployedThe effect of a cut in benefits on the number unemployed
O
Number of workers
ADL
We1
N
b a
ASL1
c
Assumption:wage rates not
flexible downwards
(Re
al)
wa
ge
rate
![Page 76: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/76.jpg)
O
Number of workers
(Re
al)
wa
ge
rate
ADL
We1
N
b a
ASL1
c
ASL2
Assumption:wage rates are
flexible downwards
We2 de
The effect of a cut in benefits on the number unemployedThe effect of a cut in benefits on the number unemployed
![Page 77: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/77.jpg)
Effect of a cut in benefits on the duration of unemploymentEffect of a cut in benefits on the duration of unemployment
O
Wa
ge r
ate
Time
Wo
Wa1
T1
Wa2
T2
![Page 78: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/78.jpg)
Policies to encourage competition
privatisation
deregulation
internal markets in the public sector
the Private Finance Initiative
free trade and capital movements
Policies to encourage competition
privatisation
deregulation
internal markets in the public sector
the Private Finance Initiative
free trade and capital movements
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
![Page 79: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/79.jpg)
Interventionist Supply-side Policies
Interventionist Supply-side Policies
Long-term Growth and Supply-side PoliciesLong-term Growth and Supply-side Policies
![Page 80: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/80.jpg)
INTERVENTIONIST SUPPLY-SIDE POLICYINTERVENTIONIST SUPPLY-SIDE POLICY
The case against the market
too little R&D and training
imperfections in the capital market
problems of lack of investment
problems of cyclical nature of investment
the problem of de-industrialisation
UK experience of lack of investment and de-industrialisation
The case against the market
too little R&D and training
imperfections in the capital market
problems of lack of investment
problems of cyclical nature of investment
the problem of de-industrialisation
UK experience of lack of investment and de-industrialisation
![Page 81: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/81.jpg)
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
![Page 82: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/82.jpg)
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
![Page 83: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/83.jpg)
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
![Page 84: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/84.jpg)
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
![Page 85: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/85.jpg)
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
![Page 86: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/86.jpg)
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
![Page 87: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/87.jpg)
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
![Page 88: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/88.jpg)
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
![Page 89: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/89.jpg)
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
![Page 90: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/90.jpg)
Industrial and manufacturing production in the UKand the OECD: selected years, 1970–2000
Industrial and manufacturing production in the UKand the OECD: selected years, 1970–2000
![Page 91: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/91.jpg)
Industrial and manufacturing production in the UKand the OECD: selected years, 1970–2000
Industrial and manufacturing production in the UKand the OECD: selected years, 1970–2000
![Page 92: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/92.jpg)
The forms of intervention
nationalisation
grants
rationalisation
advice and persuasion
information
direct provision
The forms of intervention
nationalisation
grants
rationalisation
advice and persuasion
information
direct provision
INTERVENTIONIST SUPPLY-SIDE POLICYINTERVENTIONIST SUPPLY-SIDE POLICY
![Page 93: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/93.jpg)
Planning types of planning European experience of planning
Selective intervention research and development industrial reorganisation assistance to small firms training
Planning types of planning European experience of planning
Selective intervention research and development industrial reorganisation assistance to small firms training
INTERVENTIONIST SUPPLY-SIDE POLICYINTERVENTIONIST SUPPLY-SIDE POLICY
![Page 94: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/94.jpg)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
![Page 95: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/95.jpg)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
![Page 96: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/96.jpg)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
![Page 97: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/97.jpg)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
![Page 98: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/98.jpg)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
![Page 99: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/99.jpg)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
![Page 100: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/100.jpg)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
![Page 101: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/101.jpg)
Planning types of planning European experience of planning
Selective intervention research and development industrial reorganisation assistance to small firms training
The case against intervention
Planning types of planning European experience of planning
Selective intervention research and development industrial reorganisation assistance to small firms training
The case against intervention
INTERVENTIONIST SUPPLY-SIDE POLICYINTERVENTIONIST SUPPLY-SIDE POLICY
![Page 102: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/102.jpg)
Regional and Urban Policy
Regional and Urban Policy
Long-term Growth and Supply-side PoliciesLong-term Growth and Supply-side Policies
![Page 103: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/103.jpg)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Causes of regional imbalance
changing geographical patterns of demand and supply
market responses to imbalance
regional multiplier effects
Causes of urban decay
changing patterns of demand and supply
local multiplier effects
Causes of regional imbalance
changing geographical patterns of demand and supply
market responses to imbalance
regional multiplier effects
Causes of urban decay
changing patterns of demand and supply
local multiplier effects
![Page 104: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/104.jpg)
Regional (claimant) unemployment rates (%):Regional (claimant) unemployment rates (%):
Region Unemployment (%)
Jan 1979 Jan 1987 Jan 1990 Jan 1993 Jan 1996 Jan 1999 Jan 2002
UK (average)
South East
Eastern
South West
East Midlands
London
West Midlands
North West
Wales
Yorks & Humber
Scotland
Northern Ireland
North East
4.1
4.1
3.4
2.8
3.9
–
5.5
4.1
5.7
7.8
10.8
6.8
8.1
8.8
9.7
8.9
12.4
11.5
13.1
12.1
13.8
16.9
16.2
5.6
2.6
3.1
3.8
4.9
4.7
5.7
6.1
6.6
6.6
8.4
13.0
9.7
10.5
9.0
9.7
9.8
10.0
11.6
11.1
9.8
10.4
10.5
9.9
14.0
12.8
7.7
5.5
6.4
6.5
7.0
9.1
7.6
7.0
8.3
8.3
7.8
11.2
11.1
4.6
2.5
3.2
3.3
4.0
5.2
4.7
4.2
5.4
5.6
5.5
7.3
7.4
3.2
1.6
2.1
2.1
3.1
3.5
3.6
3.7
3.8
3.9
4.2
4.9
5.4
![Page 105: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/105.jpg)
Region Unemployment (%)
Jan 1979 Jan 1987 Jan 1990 Jan 1993 Jan 1996 Jan 1999 Jan 2002
UK (average)
South East
Eastern
South West
East Midlands
London
West Midlands
North West
Wales
Yorks & Humber
Scotland
Northern Ireland
North East
4.1
4.1
3.4
2.8
3.9
–
5.5
4.1
5.7
7.8
10.8
6.8
8.1
8.8
9.7
8.9
12.4
11.5
13.1
12.1
13.8
16.9
16.2
5.6
2.6
3.1
3.8
4.9
4.7
5.7
6.1
6.6
6.6
8.4
13.0
9.7
10.5
9.0
9.7
9.8
10.0
11.6
11.1
9.8
10.4
10.5
9.9
14.0
12.8
7.7
5.5
6.4
6.5
7.0
9.1
7.6
7.0
8.3
8.3
7.8
11.2
11.1
4.6
2.5
3.2
3.3
4.0
5.2
4.7
4.2
5.4
5.6
5.5
7.3
7.4
3.2
1.6
2.1
2.1
3.1
3.5
3.6
3.7
3.8
3.9
4.2
4.9
5.4
Regional (claimant) unemployment rates (%):Regional (claimant) unemployment rates (%):
![Page 106: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/106.jpg)
Region Unemployment (%)
Jan 1979 Jan 1987 Jan 1990 Jan 1993 Jan 1996 Jan 1999 Jan 2002
UK (average)
South East
Eastern
South West
East Midlands
London
West Midlands
North West
Wales
Yorks & Humber
Scotland
Northern Ireland
North East
4.1
4.1
3.4
2.8
3.9
–
5.5
4.1
5.7
7.8
10.8
6.8
8.1
8.8
9.7
8.9
12.4
11.5
13.1
12.1
13.8
16.9
16.2
5.6
2.6
3.1
3.8
4.9
4.7
5.7
6.1
6.6
6.6
8.4
13.0
9.7
10.5
9.0
9.7
9.8
10.0
11.6
11.1
9.8
10.4
10.5
9.9
14.0
12.8
7.7
5.5
6.4
6.5
7.0
9.1
7.6
7.0
8.3
8.3
7.8
11.2
11.1
4.6
2.5
3.2
3.3
4.0
5.2
4.7
4.2
5.4
5.6
5.5
7.3
7.4
3.2
1.6
2.1
2.1
3.1
3.5
3.6
3.7
3.8
3.9
4.2
4.9
5.4
Regional (claimant) unemployment rates (%):Regional (claimant) unemployment rates (%):
![Page 107: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/107.jpg)
Region Unemployment (%)
Jan 1979 Jan 1987 Jan 1990 Jan 1993 Jan 1996 Jan 1999 Jan 2002
UK (average)
South East
Eastern
South West
East Midlands
London
West Midlands
North West
Wales
Yorks & Humber
Scotland
Northern Ireland
North East
4.1
4.1
3.4
2.8
3.9
–
5.5
4.1
5.7
7.8
10.8
6.8
8.1
8.8
9.7
8.9
12.4
11.5
13.1
12.1
13.8
16.9
16.2
5.6
2.6
3.1
3.8
4.9
4.7
5.7
6.1
6.6
6.6
8.4
13.0
9.7
10.5
9.0
9.7
9.8
10.0
11.6
11.1
9.8
10.4
10.5
9.9
14.0
12.8
7.7
5.5
6.4
6.5
7.0
9.1
7.6
7.0
8.3
8.3
7.8
11.2
11.1
4.6
2.5
3.2
3.3
4.0
5.2
4.7
4.2
5.4
5.6
5.5
7.3
7.4
3.2
1.6
2.1
2.1
3.1
3.5
3.6
3.7
3.8
3.9
4.2
4.9
5.4
Regional (claimant) unemployment rates (%):Regional (claimant) unemployment rates (%):
![Page 108: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/108.jpg)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Radical-right policies local wage agreements
control of local authority taxes
reducing unemployment benefits
Interventionist policies subsidies and tax concessions
provision of facilities
restrictions on expansion of firms in prosperous regions
Radical-right policies local wage agreements
control of local authority taxes
reducing unemployment benefits
Interventionist policies subsidies and tax concessions
provision of facilities
restrictions on expansion of firms in prosperous regions
![Page 109: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/109.jpg)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
![Page 110: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/110.jpg)
Distribution of structural funds between objectivesDistribution of structural funds between objectives
![Page 111: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/111.jpg)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Government attitudes towards regional policy
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Government attitudes towards regional policy
![Page 112: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/112.jpg)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Government attitudes towards regional policy
Effectiveness of regional policy
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Government attitudes towards regional policy
Effectiveness of regional policy
![Page 113: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/113.jpg)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
![Page 114: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/114.jpg)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
![Page 115: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/115.jpg)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
![Page 116: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/116.jpg)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
![Page 117: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/117.jpg)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
![Page 118: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/118.jpg)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
![Page 119: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/119.jpg)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
![Page 120: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/120.jpg)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
![Page 121: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/121.jpg)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
![Page 122: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/122.jpg)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy
![Page 123: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/123.jpg)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy limited financial help
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy limited financial help
![Page 124: Long-Term Economic Growth and Supply-Side Policies](https://reader038.vdocuments.mx/reader038/viewer/2022110114/54651764b4af9f94578b4d99/html5/thumbnails/124.jpg)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy limited financial help
many jobs ‘created’ are not new jobs
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy limited financial help
many jobs ‘created’ are not new jobs