By Hugo A. Keuzenkamp (auth.), Johan J. Graafland, Arie P. Ros (eds.)
In the Netherlands, the election programmes of the political events are assessed for his or her monetary effect by means of an self sufficient monetary bureau. the results of this research is released ahead of the elections happen. during this manner, the voter should be protected from political events that attempt to win the elections by means of making well known yet unfounded monetary promises.
Economic overview of Election Programmes comprises contributions of numerous individual economists and philosophers who contemplate the profits of this strategy to society. Does the research through the Netherlands' Bureau for financial coverage research (CPB) bring up the democratic caliber of the elections? will we fairly be convinced within the instruments of economics? The final component of this quantity states the opinion of representatives of the political events. This half additionally clarifies why political events voluntarily perform this method and the way they understand the function department among the political celebration and CPB.
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Extra info for Economic Assessment of Election Programmes: Does it make sense?
This use can be threefold, namely for additional spending, for reduction of the tax and premium burden, and for reduction of the govemment debt (where the norm is a one percent financial surplus in cyclical equilibrium in order to take the ageing of the population into account). Obviously this accounting rule is not based on model assumptions or on economic behaviour, and it contains no value judgement in that respect. It is noticeable that the rules and procedures for this budgetary accounting, including the norm for the budget surplus, are extensively discussed in policy advises of the Dutch Social Economic Council (SER) and in the so-called Studiegroep Begrotingsruimte ("Study Group Budgetary Space") which is a committee of high-ranked civii servants of ministries and of experts of the Central Bank on budgetary policy.
There is not much discretion in the second step, namely the budget constraint, where budgetary space plus cuts in spending should be equal to additional government expenditure plus tax reductions plus additional reduction of the govemment debt. However, the third step, where a mix of the CPB models is used for calculating the effects and propagation dynamics of the various policy proposals, is bound to many underlying assumptions. It may happen that the makers of the policy programmes disagree with the major mechanisms of the models used AN ECONOMIC PERSPECTIVE 39 for the calculations.
It is already mentioned that it is impossible to calculate the effects of policy proposals in a completely objective way. There will always be normative aspects and some subjective interpretations in the implementation of the policy proposals in the modelling exercise. On previous occasions, as part of the learning process, there have been ample discussions between the makers of the programmes and the CPB staff on this implementation. In the recent exercise the room for these discussions has been restricted by keeping a tight time schedule.
Economic Assessment of Election Programmes: Does it make sense? by Hugo A. Keuzenkamp (auth.), Johan J. Graafland, Arie P. Ros (eds.)