UNDERSTANDING THE ECONOMIC IMPACT OF GOVERNMENT CHOICES

In Partial Fulfillment to the Requirement in Introduction to Economics with LRT

A Case Study presented to Mr. Jovito M. Balbuena Jr., MA Econ

JHILLIAN JELL MAGWALING

KRISCHELLE MAE JOSE

March 25, 2019

 TABLE OF CONTENTS

INTRODUCTION……………………………………………………………………………………………………………… 1

BODY OF THE RESEARCH………………………………………………………………………………………………… 2

FIGURE 1.1 OF ECONOMIC ANALYSIS IN LOCAL GOVERNMENT DECISION MAKING…………….. 3

CHARACTERIZING AND EXPLAINING THE FIGURE 1.1 …………………………………………………… 4-5

CONCLUSION………………………………………………………………………………………………………………... 6

RECOMMENDATION……………………………………………………………………………………………………….. 7

CHOSEN REFERENCES…………………………………………………………………………………………………….. 8
 1

INTRODUCTION

One of journalists’ most important jobs is to examine or inspect closely and

thoroughly decisions made by governing bodies such as a state legislature, county council or

school board. Journalists should focus on what government decisions made for some local use

and respond to economic impact studies. Locally, decision making is one of the hardest fathom

on what should we believe. In some cases a characterization of local government decision

making exposes some limitations on applicability of economic analysis of that kind.

National and Community decision making – Officials of Communities make

decisions every day that either directly or indirectly affect the environment, public health, and

well-being. These decisions can include the siting of roads, building schools, zoning decisions,

and many others. For some decisions, the environmental, health and wellbeing impacts

(beneficial or adverse) are not well understood and are rarely evaluated from a systems or

holistic perspective.

In global experience, comparisons between countries help to show the impact of

public policy. One of the best indicators is the comparative performance of United States and

Europe. The ‘’Old Europe’’ countries that belong to the European Union tend to have much

bigger governments than the United States. While there are some exceptions, such as Ireland,

many European governments have huge welfare states.

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BODY

Governments may make choices for the economy and its impact. We tend to ask,

do these decisions make our country more productive? Do these choices make our economy

more competitive from different countries? Do these choices make us ahead of other country?

In this world where high-technology arises and people are capable of controlling it, economic

growth is probably weighing in on how it is supposed to be. An economics student once said, ‘’a

person who don’t rely on what government’s choice is independent’’. How can someone make a

statement like this when even the roads we use every single day was owned by government? I

bet lacking of knowledge in economic impacts or just as she thinks it is the government’s

responsibility.

Government regulation of the economy is frequently used engineer economic

growth or prevents negative economic consequences. During periods of weak growth,

Keynesian economist recommend lowering interest rates to encourage borrowing and restore

economic growth .In response to inflation concerns, governments may decide to increase

interest rates. Government policies may use tax incentives to direct economic conditions also.

The active use of these strategies demonstrates government interest in preserving particular

economic circumstances to further the economic well-being of important stakeholders and the

public.

Economic theory is important in providing a perspective for understanding how

the world works, but evidence helps us to determine which economic theory is most precise.

This reviews global comparisons and academic research to ascertain whether government

spending helps or blocks economic performance.

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ECONOMIC ANALYSIS IN LOCAL GOVERNMENT DECISION MAKING

------------------------------------------------------------------------------------------------------------------------------------------

LEAF PICK UP

POLICE PATROL
FIGURE 1.1

THE REALISTIC DOMAIN OF COMMUNITY DECISION MAKING

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The analysis and decision making with respect to some public services is further

complicated because, like leaf pickup in some towns are both an output and an input. Leaf

pickup is valued by citizens in and of itself and is, thus, an output and it is valued by town

management as an input in the production process involved in the maintenance of the sewer

system. A realistic characterization of community decision making using these service examples

require, that several other observations be made. Although most communities probably provide

some form of police services, many will not provide leaf pickup. That is, not only are the

production technology, the inputs, and the units of output measure subject to public debate,

but whether to have leaf pickup at all is also a public choice (https://ageconsearch.umn.edu).

In addition, some perceptions out of the public choice perspective to

government, its organization and its functions will help to both evaluate the role for economic

analysis in local government as conventionally understood and suggest additional contributions

for economists and economic analysis. The public choice perspective of government is a

construct based on a model of individual behavior. However, it goes beyond the traditional

theory of markets and argues that individuals participate in political-government interactions as

well as in market interactions

The public choice model is explicitly democratic. As with traditional economics

applied to the behavior of individuals in markets, the individual operating as citizen is assumed

to be motivated by the desire to maximize her or his own utility. The public choice view thus

clearly recognizes that the consumers of government provided services are also the citizens

who determine the quantity and quality of the services provided.

 5

The jurisdictional boundaries of local units of government- are thus seen as a major dimension

of the structure of the marketplace in which citizens act to articulate their preferences (Bish,

Schmid).
 6

CONCLUSION

In the process of arranging items systematically, and has two common, yet

distinct meanings with the conflicting interests, the public debate which leads to the collective

choice includes debate over values, cause or effect relationships, and empirical facts. It is here

argued that the most productive public debate occurs when values get debated in clear detailed

manner and when there is little debate or disagreement over known facts and relationships.

However, when there is little or no empirical knowledge on a question, when theoretical-

empirical knowledge is not understood, or where values are having changed one's appearance

in order to conceal one's identity as fact, there is considerable time spent in debate on the

"facts" and the implied but not plainly expressed values rather than on explicit values. Although

by implication from this paper there is not much optimizing for an optimizing economist to do

on behalf of government, there is considerable economic analysis to be done in instructing the

public debate at the local level.

It is also imperative that analysts who supply information for public debate be

clear about the fact-value distinction and about the degree of certainty of the validity of

particular pieces of information.

This paper evaluates the impact of government spending decisions on economic

performance. It discusses the theoretical arguments, reviews the international and local

evidence, highlights the latest academic research, cites examples of countries that have

significantly reduced government spending as a share of national economic output, and

analyzes the economic consequences of those reforms.

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RECOMMENDATION

From the University of Delaware statement- ‘’Our diverse, nationally-known

faculty conduct extensive and coordinated programs in undergraduate and graduate education,

cutting-edge research, and public outreach in many vital areas including Natural Resource

Management; Environmental and Resource Economics; Agricultural Policy; Food and

Agribusiness Marketing and Management; International Trade; Operations Research and

Decision Analysis; and Statistical Analysis and Research Methods’’.

The community planners should know what skills and information they need from

the professionals and the resources available. This is because working with local officials and

government can provide proper training and leadership opportunities. Build knowledge and

skills about qualifications of natural resources of natural resource professionals. They can also

provide information and management options.

Public participation must be fully disseminated and be fully incorporated into

environmental assessment and decision- making, and it should be recognize by government

agencies and other organizations whether it is local, national and international with due process

as a requisite of effective action, not a merely formal procedural requirement. Analyses that

attempt to measure the impact a project such as a new tourist attraction or highway would

have on economic activity in a given area.

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CHOOSEN REFERENCES

Ageconsearch.umn.edu/record/159468/files/The%20rold

Canr.udel.edu/apec/

Community+decision+making+impacts&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjJv4-

pv5rhAhXQdXAKHY-2DMwQ_AUIDigB&biw=1440&bih=740#imgrc=HtyGzd4cIYJmjM:

Epa.gov/sites/production/files/2015-08/documents/shc_strap_bosc

Ilo.org/manila/eventsandmeetings/WCMS_172035/lang--en/index.htm

Nap.edu

Philippine+women%27s+college&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj1yIfSuJrhAhUMMd4KHX

A2AOQQ_AUIDigB&biw=1440&bih=789#imgrc=j7YyEJe61U7-UM:

UNDERSTANDING+THE+ECONOMIC+IMPACT+OF+GOVERNMENT+CHOICES&oq=UNDERSTANDING+THE+

ECONOMIC+IMPACT+OF+GOVERNMENT+CHOICES&aqs=chrome..69i57.195j0j7&sourceid=chrome&ie=

UTF-8

Yourschoolmatch.com/find/economics/5F436C21-4B92-6E97-3DBE-

248BA19065A0?amp=1&utm_source=google&utm_campaign