Лекции по "Административному праву"

Lecture 1. Public Goods.

Lecture 1. Four questions about government intervention to economy.

5. Why Should the Government Intervene in the Economy?

Market  failure, redistribution and net exports ex.

5. Indirect costs as well as benefits are called externalities, or spillover.

6. Redistribution is the shift of resources from some group of society to other, involves efficiency  losses.

7. How  Might the Government Intervene?

Government intervenes options: price mechanism with taxes or subsidies, mandates to produce the goods, public provision, public finance of private provision.

8. What Are the Effects of Alternative Intervention?

Empirical public finance assesses effects of government actions.

8. Direct effects of government action assumes “no behavioral responses” and examine the intended consequences of action.

Indirect effects - people change behavior.

9. Why Do Governments Do What They Do?

Political economy understand how government make public policy decisions. Not only market failures can lead to inefficiency, government failures lead to inappropriate intervention.

 

Lecture 1. Public goods: nature and examples.

10. Pure public goods are non-rival in consumption (another person does not affect your opportunity to consume the good), and non-excludable (no way to deny consuming the good).

11. “Impure” public goods are non-rival, but excludable. Or rival, but not excludable. Pure public goods are both non-rival and non-excludable.

11. Ice cream. My consumption of it precludes you from consumig the same ice cream.

I cannot simply share my ice cream with you.

12. Crowded sidewalk is rival because more people also use the same, and it is non-excludable because it is difficult  to prohibit people from using.

12. Cable TV is non-rival and excludable, because my consumption of it is no way diminishes your consumption, cable company can simply refuse to hook up the system.

12. National defense is non-rival and non-excludable, because my consumption does not diminish your consumption; once an area is protected, everyone “consumes” that protection.

 

Lecture 1. Optimal provision of private goods, aggregated demand and social efficiency

13. Optimal provision of private goods. Ice cream is the alternative cookies, which is numeriare good, and as price adjusted, each person changes his quantity consumed.

13. … Ice cream are produced until the marginal cost equals the marginal benefit, which equals the price in a competitive market.

15. … For any quantity of ice cream the MRS (marginal rate of substitution) equals the SMB (social marginal benefit) – value to society equals value to any individual in the perfectly  competitve market.

17. Aggregated demand of private goods is found by summing the individual demands horizontally, public goods – vertically.

17. Social efficiency of public provision is maximized when the marginal costs are set equal to the sum of the marginal rate of substitution  (rather than each individual MRS). Because the good is non-rival, producer to take into account all consumer preferences.

 

Lecture 1. The free rider problem: nature, examples, solutions. 

18. The free rider problem in practice. Each resident sneaks his garbage into his neighbour garbage, and no one would pay trash collections voluntarily - private sector underprovide.

20. The Free Rider Problem in Practice. Only 7.5% of public radio listeners in New York constribute to the station. The BBC channel all television owners. Cambridge free green bicycles – most stolen and repainted.

21. Business Improvement Districts. New York city government attempted to clean Times Square 10 years. A Business Improvement Districtt (BID) privately provides public services. New York law if 60% of the local business commodity to join, levy fees on all.

22. Business Improvement Districts. Massachusetts law allows business to “opt-out” of a BID within 30 days of the BID approved. Only 2 BID was in Massachusetts.

23. Private provision decide the free rider problem when some individuals have a high demand, because of altruism, social capital, en.

 

Lecture 1. Public provision of private goods. The problem of Crowd-out.

27. Public provision of private goods. The government could provide the good directly or mandates individuals. The private market may provide a socially inefficinet level of the private good, and public providing may crowd-out the private provision.

28. The Problem of Crowd-Out. Public provision could crowd out private provision one-for-one financed by chrging equal amounts to each of them. Government provides no more than privately beforehand.

29. The full crowd-out is rare, and Partial crowd-out can occur when: people who don’t consume to the public good are taxed to finance its provision; or individuals derive utility from individuals as well as public good provision.

30. The Problem of Crowd-Out. If non-contributors are forced to pay for the good below the social optimum, the contributors effective income levels become higher and they contribute more. If the warm glow model - not fully crowd out giving.

Lecture 1. Altruism, Warm glow model, cost and benefits of public goods, preferences.

25. Altruism and incentive to contribute  to pool of money suggest, between 30% and 70% of participant contribute to the public good. Stakes are often small and the cost of altruism is low.

26. Warm glow is a model of the public goods provision in which individuals care about total public good and their contributions as well. They may get psycological benefits from knowing they helped a worthy  cause.

31. Measuring the costs and benefits of public goods can be complicated: within a public provision would be unemployed, assumes the government would know each person`s preferences.

32. Preference revelation means: individuals may not tell the governmet their true valuation and government might charge more.

Preference knowledge: individuals have little experience in detailed pricing.

32. Preference aggregation: government puts together the provision of millions of citizens. Political economy studies how government make public policy decisions for the appropriate level of public goods.

Lecture 2. The public sector in perspective.

Lecture 2 Measuring the size of public sector

2. Measuring the size of public sector:

- The share of public budget expenditures in a GDP.  

- Per capita government expenditures.

- Number of public employee.  - Historical trends.

- Budget defifcit and public debt. - Different levels and kinds of public units.

4. International comparisons of public sector size. France has the biggest share of public sector, which theoretically discourages business, but not in reality. Statistically Russia shows 1/3 share of public sector.

5. Total government spending in retrospective. American propaganda insists that the size of public sector must be decreased, but the real steps are too li.

Greek government trusts American propaganda and really diminishes the public sector. OECD average shows countries av quick signigicant change.

 

 

Lecture 2. Grows of governments: reasons and historic trends.

7. Wars as key reasons of the US government growth. Expenditures jumped during war time and then declined, but not to prewar levels. After each war the siize of the US economy and overall tax base increased. Exceed federal debt must be paid back and war-time taxes must be saved.

8. … Then public debt decreased and revenue were used for other programs (rail way expansion, economic recovery, social security). In opposite after Cold War taxes were declined - huge increase of public debt.

9. Key historical trends of the US government growth:. overall government expenditures rose from 12% to 31% of GDP. State and local expenditures grew steadily and fluctuated based on economic cycle. .

10. Reasons of government growth: need for collective goods, demographic changes, changes in living pattern, externalities, economic hardships, high-risk situations, technological changes.

11. Informal understanding of government growth as the result of bureaucrats, taxation as legal constrain and selected public grants. Citizens must benefit from fiscal policy, and growth of public sector must be stable and complex.

 

Lecture 2. Public sector: the size of authorities’ levels, spread of budget deficit.

13. Public sector and different authorities’ levels (some international comparisons): Japan, France, UK have in fact 2 major levels. Canada`s regional authorities operates the biggest share of the budget. The UK and US emphasize the private social security.

15. Government Deficit Statistics. Facing economic slowdown, governments protect far near movements by fiscal deficit - 3% of the deficit is OK.

15. … Canada and Russia manage public finance with surplus in a top phase of an economic cycle and small deficit - in a bottom, periodical budget surplus is important for consumer-ordered countries too.

16. … The deficit is mainly concentrated at the federal level, which controls financial markets and money print machine, concentrates and flexibly manages the biggest funds, support and manages regional and local budgets. Regional and loal budgets stay closer to living needs and avoid experiments.

17. The US Federal Surplus or Deficit. ¾ of years federal expenditures have been bigger than tax revenue, and after long economic or price boom expenses became less than taxes.

 

Lecture 2. Factors for the size of governments: privatization, competition, costs.

21. Privatization and the size of public sector. Government taxes or fees are declined, taxes increased by quality improvements, which do not cost additional money paid.

21. … Competition, private initiative and responibility are really improved for majority innovations, in mass stage public monopolies are desired.

23. … Education and research cost for government differs reported in budget: will generate future revenue and usually exempted from income tax.

24. .... Tax exemptions for interest paid on mortgages have greater effects than all federal expenses for construction sector.

 

Lecture 2 Problems with measurement of a public sector

22. Problems with measurement of a public sector.

(1) Safety service can be provided by policy, or private company.

(2) Consumers can pay for water to municpical agency, really delivered by a private company.

22. (3) Education financed by government, students, or private companies.

(4) Pensions paid by public or private funds, both from taxes.

23. Unclear border between public and private sectors. Governments requires little money that has a substantial impact  on the private sector by regulatory activities and also by redistribution financial sources.

24. … Corporations become quasi-public institutions: Boeng, General Electrics are not owned by government, but 0% revenue coming from government contracts.

Lecture 3. Foundation and characteristics of public finance at federal, state and local levels. Public budget system and its principles.

Lecture 3. Organization of public finance.

3. Finance provides different authority level with money for execution of their funds. Public finance is money relations occur during creation and use of funds by authorities. Authorities adjust social relation, develop economy, smooth differentiations across communities and sectors.

4. Factors of public finance organization.    

Unitarian or federal, administrative and territorial a country structure; 

specific territorial forms of government;   references of public or private property;    structure of public good provision.

5. A country structure and public finance organization: power is delegated between central and regional and among local authorities. Each authority has owned financial funds.

6. Public and private providers operate not only in big business at federal level, also at regional education, medicine and communal services; in a form of commercial companies, nonprofit organization or direct authority.

Lecture 3. Definitions of Public Budget, Public Financial Sources and Public Expenditures.

7. Public budget is the form of formation and usages of financial sources under an authority management and for various of public needs.

Public non-budget funds: … for narrow specific public needs, seperated from other budget.

8. Public financial sources are received by public budget and non-budget funds,

from companies and individuals, as taxes and fees for public sector and private use for execution of power functions according to their competence.

Through money payment, according to the federal fiscal law.

9. Public finance deficit and surplus. If expenditures exceed revenues sources, the gap is covered by defict finance source, which are various loans and property sales.

9. … If expenses are less then revenues, the money savings are generated in form of bank account surplus at the end of fiscal year for investment.

10. Governmental expenditures are money from federal and regional budget and non-budget funds for public purposes and government liabilities according to various politics.

Lecture 3. Federal Public Budget and Non-budget Fund – revenue and expenditures.

12. Federal public budget is money funds under the management of federal government for execution of their general funds and pr.

12. Revenue of the federal budget are: income taxes, value added taxes, custom`s duties and excises. Divindends, interest, rent, payable services, fines, grants.

13. Federal public expenditures.

Defence, public security and international relations. Most important education, medicine.  

Social security and pensions.  Development of key sectors.

Maintenance of financial sector and regional budget.

Payments for public debt.  Administrative expenses.

14. Federal non budget fund is money funds under the federal government aimed for narrow specific services, separately from other revenue sources and expendures.

14. Revenue of federal non-budget funds consist of specific taxes or initial contribution.

Key expenditures are pensions, medicine , social securities; transportation and communal infrastructure development.

Lecture 3. Regional Public Budget and Non-budget Fund – revenue and expenditures.

15. A regional public is a money funds under the management of regional government for general functions.

15. Revenue of regional budgets consists of pensions income tax, property taxes, taxes on specific business, share of federal taxes, grants from federal budget, regional income and payable services.

16. Regional budgetary expenditures:  Delegated part of public sector.

Basic education and medicine  Specific social security payments.

Key regional infrastructure and industry sectors. Maintenance of local budget.

Payments for public debt.  Adminstrative expenses.

17. Intergovernmental relations include various transfers from federal to regional budget for: federal programs under regional management, equity of financial sources for mass programs, for regional specific programs.

Lecture 3. Local Public Budget – features of revenue and expenditures.

18. Local authorities might have owned financial sources and independent choice of expenses. Small municipalities cost calculation is covered by regional or high municipal budget.

19. Revenue of a local public budget:  personal property taxes, land tax,

share of regional taxes, grants from regional budgets,

rental property and payable services, income of communal public companies, fines.

20. Local budgetary expenditures:  relate to basic living needs.

Delegated from federal and regional governments for a more effective program execution.

Transmitted from low level (small) municipality, which don’t have enough revenue and staff.

21. Features of local public finance. Local authorities can invest money to local companies.

Fiscal law prohibits bank deposit.  Non-bank funds can’t be created.

In the 2000s half expenses are covered by regional government.

Lecture 3. Public budgeting system, its features in the USSR and Russia.

22. Public budgeting system is an aggregate of public budget of different administrative and territorial  formations, that interrelate with each other in compliance with a fiscal code.

22. Public budgeting system consists of type and level of public budget, specific authority forms (federal country has three levels, unitary – two).

23. Unitary public budgeting system of USSR had integrated national budget, determined by central law, had unified revenue and expenditures, central plan.

23. Democratic centralism assumed power delagation and high concentration of financial sources.

24. Federative public budgeting system of Russia is

based on economic relations, national organization, and federal laws;

the complex of public budget and non-budget funds.

Local budgets - two sublevels, public non-budget funds are not consolidated.

27. Unity principle of public budgeting system means federal fiscal law for all levels and unified public accounting.

27. Independence principle is own decision-making, regional and local specifics and law.

No liabilities on other budget, no changes during the fiscal year, no confiscation of surplus.

28. … Limited use of consolidated budget for analysis and decision making.

28. Principle of demarcation means revenue and expenses fixing for regional or local budgets, and their abilities

Lecture 3. Fiscal federalism.

28. Equally of fiscal rights for regional and local authorities are determined by the federal laws.

29. Public budget federalism is established for optimal combination of fiscal independence, expressed by different levels of authority, in condition of their fiscal independence.

29. Fiscal federalism is not fully realized for local budget, which really depends on federal taxes and regional transfers.

30. Improvements in public budget federalism. Adjust federal fiscal code and expenditure methods. Revenue and expenditures should be followed by longterm decisions.

30. … Transparence of transfers, and financial management at local level has improved. Lack of local authority stimulus for owned economic development stayed actual.

Lecture 4. Public Finance and Economic Development.

Lecture 4. Definition and reasonable size of public finance

3. Public finance is  complex of monetary relations, between goV and coMP and inDIVID, for reDISTRIBUT of GDP and exPORT and naTIO weA, and creation of moNET fuND  under a goV maNAG for public neEDS according to goVER reSPONSIBILITY.

4. Reasonable size of public budget is the trade-off between:

Huge public sector causes taX AvOIDANCE , ecON reCESS, shrink of buDG reVE

Small governmental revenue causes puBLI deBT, soCI teNSIONS, slowdown of prOGRESS and long term ecONOMIC prOBLEMS.

5. Reasonable size of public budget depends on: contradict inTERESTS of vaRIOUS grOUPS, controversy increase puBLIC seCTOR and prIVATE inITIATIVES, level of deVELOP, current poLITICAL chANGES and gains, trANSFERS and reasonable plANS.

6. Public budget may regulate: rate and proportions of ecONOMIC deVELOPMENT of seCTORS and teRRITORIES, different soCIA grOUPS, of inVESTMENT and coNSUMPTION.

Lecture 4. Fiscal mechanism and mobility of public budget. 

6. The regulation are made through budget revenue and expenses, fiscal policy and fiscal mechanism. Fiscal mechanism organizes reVEN coLLEC and exPENDITURE exEXUCTION

7. Revenue side of fiscal mechanism and efficiency of revenue collection depends on stRUCTURE and adjustments of various taXES - different grOUPS of taXPAYERS, leVEL of auTHO, inVEST-coNSUME proportion, prEFERRED seCTORS.

8. Expenditure side of fiscal mechanism influence suPPLY and deMAND by public exPENDITURES, public saLARIES and soCIAL reCIPIENTS.

8. … Budget monetary injections move brEAK-evEN poINT, coRPORATE reVE and prOFIT are increased more, which also maintain teCHNOLOGICAL prOGRESS and imPRO efFICIENCY.

9. Public budget classification systematizes all reVENUE, deFICIT fiNANC and exPENDITURES of public sector. It is also the base of puBLIC acCOUNTING and fiNANCIAL stATEMENTS for all auTHORITY leVELS and puBLIC opERATIONS.

11. Mobility of a public budget fund includes: unIFIED exPENDITURES coverage, unIFIED caSH exECUTION and budgetary reSERVES, pr changes in budget pr – which means  … public exPENSES don’t have linked fiNANCIAL soURCES and provide flEXIBLE reVENUE alLOCATION,

… unIFIED system of puBLIC acCOUNTS for coNSOLIDATION of public finance opERATIONS,

… cover false asSUMPTIONS during budget prEPARATION and teMPORAL diSPROPORTIONS.

12. … secure that imPORTANT exPE will be exEC

… during budget prEPARATION it siMPLIFIES choice among prPROGRAMS and gives gap of paRAMETERS.

Lecture 4. Federal and regional government influence to economy.

13. Federal government concentrates the biGGEST budget “piE”, widely reDIS moN among most important prOGR, deTER fiscal ruLES for reGIO auTHORI, and helps them by reVENUE and coNTROL.

… Regional governments better alLOCA financial soURC based on loCAL specific; have a major impact on huMA caPI and cost of liVIN and buSINESS.

14. Investments in public infrastructure could be a baRRIER for buS (like bad roADS) and cost of goOD and laBOUR increases, or create new prIVATE inVESTM and total ecONOMY exPAND.

… usually for crITICA caPITAL formation, with prIVATIZA of coMMON facilities.

15. Regional governments compete each other over the loCATION of inDUSTRIA facilities by taX brEAK and loW-COST facilities. … For the national economy it is only reLOCATION and fiSCAL prOBLEMS and federal government reGULATE loCAL fiscal dECISIONS.

Lecture 4. Demand- and supply-side fiscal policy – history, critics and modern aspects.

16. Keynesian economics. During the Gr De, the main cause of doWNTURNS was cuts in prODUCTION in response to deCLINING deMAND. Such cuts result in less puRCHASING poWER for coNS, further reDUCED deMAND. Government should stIMULATE deAND by spEND, ensuring caPACITY is used, by inCURRING the deFICIT.

17. Supply-Side Economics. In 1970s high taXES reDUCED ecONOMY. If taXES are cut, prODUCTION will be stIMULA. Actual reVENUE will be higher because of increased prOFITS, waGES, inFLATION. In 1980s and 2000s with the result of ecONOMIC grOWTH and public deBT.

18. Critics of demand- and supply-side fiscal policy. In 1930s there was coNSTRUCTION boOM and ecONOMY reCOVERING, government deBT and taXES were too smALL.

… Clinton prOSPERITY was the result of Reagan poLICY or trATMENT against his voLUNTARISM? Statistically, no evidences that buDGET reVENUE reCOVERED after taX-cut by taX-baSE spREAD.

19. Contemporary Fiscal Policy

… is more pragmatic: taX reDUCTIONS to inVESTMENTS in caPITAL facilities and R&D; deMAND maintained in a boTTOM, because of long-TERM huge puBLIC deBT.

… After 2008 financial collapse there were maINTENANCE of fiNANCIAL sector and coNSUMER’S deMAND with the result of huge puBLIC deBT.

Lecture 4. Multiply effects and lags of fiscal policy, fiscal and monetary policy.

20. Multiplier Effects of Fiscal Policy increase by pu inVESTM to R&D and inFRASTR not by reDISTRIBU from prIV to puBL seCTRS; by puBLIC deFICIT and boRROWING, faMILIES saVINGS.

21. Lags of Fiscal Policy:    a peRCEPTION lag – evENT and its reCOGNITION;

A reACTION lag - and the deCISONS; an imPLEMETATION lag - affects the ecONOMY.

… Like new taX required tiME, caPITAL coNSTRUCTION has the biggest lag, and the lag is important in ecONOMIC cyC.

22. Monetary policy - foundation. Government’s effect not through fiscal policy at all, but through coNTRO over the moN su by the CeNT BaN.

23. Monetary policy – list of tools. Ce Ba lends moN to the coMM baNK, buys and sells goV boN, controls the reSERVE reQUIREMENTS, influence inTEREST rate and inFLA, stimulate dePRECIATION by allowing the moNE suPP to grow.