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The GDP gap or the output gap is the difference between actual GDP or actual output and potential GDP, in an attempt to identify the current economic position over the business cycle. The measure of output gap is largely used in macroeconomic policy (in particular in the context of EU fiscal rules compliance). The GDP gap is a highly criticized ...
The Rybczynski theorem was developed in 1955 by the Polish-born English economist Tadeusz Rybczynski (1923–1998). It states that at constant relative goods prices, a rise in the endowment of one factor will lead to a more than proportional expansion of the output in the sector which uses that factor intensively, and an absolute decline of the output of the other good.
The budget-maximizing model is a stream of public choice theory and rational choice analysis in public administration inaugurated by William Niskanen. Niskanen first presented the idea in 1968, [ 1 ] and later developed it into a book published in 1971. [ 2 ]
Changes in one constraint necessitate changes in others to compensate or quality will suffer. For example, a project can be completed faster by increasing budget or cutting scope. Similarly, increasing scope may require equivalent increases in budget and schedule. Cutting budget without adjusting schedule or scope will lead to lower quality.
Performance-based budgeting is an approach in which funding for an institution "depends on performing in certain ways and meeting certain expectations". [10] " Historically, many colleges have received state funding based on how many full-time equivalent students are enrolled at the beginning of the semester". [ 9 ]
The difference between potential output and actual output is referred to as output gap or GDP gap; it may closely track lags in industrial capacity utilization. [ 4 ] Potential output has also been studied in relation Okun's law as to percentage changes in output associated with changes in the output gap and over time [ 5 ] and in decomposition ...
Even a balanced budget fiscal stimulus—additional public purchases fully financed by equivalent increases in taxation without any additional public borrowing—may have a multiplier greater than 1, as the increase in output and business activity reduces persistent unemployment and the anxiety driving hoarding, with resulting increases in ...
Program Budgeting takes a normative approach to budgeting in that decision making—allocating resources—is determined by the funding of one program instead of another based on what that program offers. The goal is to allocate resources based on the relative importance of each program to the overall mission of the organization.