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Transcript of Public Management Chapter 16 7E M ANAGERIAL E CONOMICS F U N D A M E N T A L S O F © 2003...
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Public Management
Chapter 16
7E
MANAGERIALECONOMICS
F U N D A M E N T A L S O FF U N D A M E N T A L S O F
© 2003 South-Western/Thomson Learning
M A
R K
H I
R S
C H
E Y
PowerPointPresentation
byCharlieCook
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Fundamentals of Managerial Economics 7e © 2003 South-Western/Thomson Learning 16–2
Optimal Amount of Optimal Amount of a Public Gooda Public Good
Figure 16.1Figure 16.1
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Fundamentals of Managerial Economics 7e © 2003 South-Western/Thomson Learning 16–3
Maximization of Social Benefits Maximization of Social Benefits from Government Programs and from Government Programs and
Public- Sector InvestmentsPublic- Sector Investments
Figure 16.2Figure 16.2
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Fundamentals of Managerial Economics 7e © 2003 South-Western/Thomson Learning 16–4
High GDP Growth, Coupled with Low High GDP Growth, Coupled with Low Unemployment and Inflation, Made for Unemployment and Inflation, Made for a Vibrant “New Economy” in the 1990sa Vibrant “New Economy” in the 1990s
Figure 16.3Figure 16.3
Note: Real GDP growth (chained 1996 dollars) and inflation (measured by the CPI-U-RS) are average annual rates from the end of the preceding year through the end of the period. Unemployment rates are monthly averages. Data for 2000 are through the third quarter for real GDP and through November for unemployment and inflation.
Sources: Department of Commerce (Bureau of Economic Analysis) and Department of Labor (Bureau of Labor Statistics).
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Fundamentals of Managerial Economics 7e © 2003 South-Western/Thomson Learning 16–5
Growth in Real Household Income Growth in Real Household Income by Quintile, 1973by Quintile, 1973–1993 and 1993––1993 and 1993–
19991999
Figure 16.4Figure 16.4Source: Department of Commerce (Bureau of the Census).
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Fundamentals of Managerial Economics 7e © 2003 South-Western/Thomson Learning 16–6
Long-Term Budget Balance Projections Long-Term Budget Balance Projections Differ Widely Under Various Policy Differ Widely Under Various Policy
AssumptionsAssumptions
Figure 16.5Figure 16.5Note: Data are for fiscal years, Projections are based on policy and economic assumptions fro the June 2000 Mid-session review updated for actual economic performance through the third quarter of 2000.
Source: Office of Management and Budget.
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Fundamentals of Managerial Economics 7e © 2003 South-Western/Thomson Learning 16–7
Recent Global Changes in Labor Productivity Recent Global Changes in Labor Productivity and and
Total Factor Productivity (1990Total Factor Productivity (1990–1995 to 1996––1995 to 1996–1999)1999)
Figure 16.6Figure 16.6Source: Board of Governors of the Federal Reserve System.
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Fundamentals of Managerial Economics 7e © 2003 South-Western/Thomson Learning 16–8
Average Annual Percent Change in Imports Average Annual Percent Change in Imports and Exports by End-Use Category (1996and Exports by End-Use Category (1996––
2000)2000)
Figure 16.7Figure 16.7Note: Total includes “other,” which is not shown. Estimates for 2000 are based on data for the first three quarters.
Source: Department of Commerce (Bureau of the Census).
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Fundamentals of Managerial Economics 7e © 2003 South-Western/Thomson Learning 16–9
Health Health Insurance Insurance
Coverage of Coverage of Those Under Those Under
65, by 65, by Insurance Insurance Type and Type and
Income, 1999Income, 1999
Figure 16.8Figure 16.8Source: Department of Commerce (Bureau of the Census).
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Fundamentals of Managerial Economics 7e © 2003 South-Western/Thomson Learning 16–10
Health Expenditures and Enrollment Health Expenditures and Enrollment in Health Maintenance Organizationsin Health Maintenance Organizations
Figure 16.9Figure 16.9Sources: Department of Health and Human Services (Health Care Financing Administration) and Employee Benefits Research Institute.