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Benchmarking Method
Benchmarking Method

... • We will focus on the country-level benchmarking method • Information requirements: – GDP and/or GDP for key economic sectors – Estimate of annual damages (aggregate number or percentage of GDP) – Annual expenditures on met/hydro services – Value of proposed investments ...
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... necessary to keep spending down to prevent inflation. The interest can be paid by borrowing still more" (p. 356). Lerner (1943) summarized the answers to arguments against deficit spending by saying that the national debt does not have to keep on increasing, and that even if it does the interest doe ...
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... ˆi  0  1Yi  2 Ei  3Oi  4Ti   i • decomposition of the output efficiency score into two distinct parts: • the result of a country’s environment, • all other factors having an influence on efficiency, including therefore inefficiencies associated with the health system itself. ...
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... consumer spending, and in exports of goods and services (see Table 1.4).2 Economic growth was tempered by an increase in imports.3 Exports increased for the first time after five consecutive years of decline. Tourism services (which make up the majority of exports of services) increased due to an in ...
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... It is a $200 credit in the U.S. financial account (the French have lent us $200). A U.S. citizen buys a $1000 Italian typewriter; the Italian company deposits the $1000 in its account at Citibank in New York (the U.S. trades assets for goods). This transaction enters the U.S. CA with a negative sign ...
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... money x velocity = price x real output. • In words: the amount of physical money, multiplied by the number of times each coin or note is circulated (i.e., its velocity) must equal the total amount of money spent in the economy, which is simply price (per unit of output) times the amount of output. P ...
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Fiscal multiplier

In economics, the fiscal multiplier (not to be confused with monetary multiplier) is the ratio of a change in national income to the change in government spending that causes it. More generally, the exogenous spending multiplier is the ratio of a change in national income to any autonomous change in spending (private investment spending, consumer spending, government spending, or spending by foreigners on the country's exports) that causes it. When this multiplier exceeds one, the enhanced effect on national income is called the multiplier effect. The mechanism that can give rise to a multiplier effect is that an initial incremental amount of spending can lead to increased consumption spending, increasing income further and hence further increasing consumption, etc., resulting in an overall increase in national income greater than the initial incremental amount of spending. In other words, an initial change in aggregate demand may cause a change in aggregate output (and hence the aggregate income that it generates) that is a multiple of the initial change.The existence of a multiplier effect was initially proposed by Keynes student Richard Kahn in 1930 and published in 1931. Some other schools of economic thought reject or downplay the importance of multiplier effects, particularly in terms of the long run. The multiplier effect has been used as an argument for the efficacy of government spending or taxation relief to stimulate aggregate demand.In certain cases multiplier values less than one have been empirically measured (an example is sports stadiums), suggesting that certain types of government spending crowd out private investment or consumer spending that would have otherwise taken place. This crowding out can occur because the initial increase in spending may cause an increase in interest rates or in the price level. In 2009, The Economist magazine noted ""economists are in fact deeply divided about how well, or indeed whether, such stimulus works"", partly because of a lack of empirical data from non-military based stimulus. New evidence came from the American Recovery and Reinvestment Act of 2009, whose benefits were projected based on fiscal multipliers and which was in fact followed - from 2010 to 2012 - by a slowing of job loss and private sector job growth.
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