Get Public Enterprise in Mixed Economies Some Macroeconomic PDF

By Robert H. Floyd

This quantity includes 3 papers facing a variety of features of the general public firm region and the effect that those could have on macroeconomic research.

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Download e-book for iPad: Public Enterprise in Mixed Economies Some Macroeconomic by Robert H. Floyd

This quantity includes 3 papers facing a number of points of the general public company quarter and the effect that those could have on macroeconomic research.

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International Monetary Fund. Not for Redistribution SOME TOPICAL ISSUES CONCERNING PUBLIC ENTERPRISES 19 ticularly difficult because a profit can usually be generated even though the public enterprise is not being efficiently operated. Excessive costs or noncapital factor payments can be passed on to consumers in higher output prices without any reduction in profits. Indeed, the presence of monopolistic elements provides one of the clearest justifications for government regulation of public enterprise prices, and perhaps one of the most common examples would be publicly owned utilities.

Rice or health services) rather than to provide tied grants for its consumption to the poorer sections of the community. The transparency concept requires, in order to avoid generating subsidies of unknown (and perhaps undesired) magnitudes when prices are deliberately altered for distributional or allocative considerations, that the extent to which revenues or costs are affected should be at least crudely quantified and evaluated. When financial losses are incurred, an explicit subsidy to the public enterprise may be required in the government's budget.

Shepherd and Associates, op. , p. 44. ©International Monetary Fund. Not for Redistribution SOME TOPICAL ISSUES CONCERNING PUBLIC ENTERPRISES 15 short-term bank credit. Such controls may be closely related to the objectives that take the form of targets and ceilings against which the actual performance of the enterprise is to be subsequently assessed. For example, an overall profitability objective could be used in conjunction with investment plans of public enterprises to determine other financial subtargets, such as their overall borrowing requirements.

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