IDEAS home Printed from https://ideas.repec.org/a/eme/ijsepp/v38y2011i3p209-217.html
   My bibliography  Save this article

Measurement of the social loss of wrong public budget allocation

Author

Listed:
  • Nissim Ben‐David
  • Tchai Tavor

Abstract

Purpose - The purpose of this paper is to measure the social loss occurring due to the inability of the government to use the real public demand function. Design/methodology/approach - The authors developed a model that enables maximization of the public utility of a given public budget by maximizing total consumer surplus, and presented a method for calculating the social loss due to the inability to use the real public demand function. Findings - The social loss occurring due to the inability of the government to use the real public demand curve was shown. Research limitations/implications - In reality, it is impossible to get the proper evaluation of social utility function. Instead, the authors assumed a given public demand for each public good. Practical implications - The paper presents a way to measure overtime social loss as a function of the sum of overtime government expenses, the coefficient of variation of the public good supply and the elasticity of demand of the average demand curve. Social implications - Improving the allocation of public budget. Originality/value - Given the demand curve for each public good, this paper presents a technique for the optimal allocation of a given budget in order to maximize aggregate consumer surplus.

Suggested Citation

  • Nissim Ben‐David & Tchai Tavor, 2011. "Measurement of the social loss of wrong public budget allocation," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 38(3), pages 209-217, February.
    • Handle: RePEc:eme:ijsepp:v:38:y:2011:i:3:p:209-217
    DOI: 10.1108/03068291111105156
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068291111105156/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068291111105156/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/03068291111105156?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Aliza Fleischer & Daniel Felsenstein, 2002. "Cost-Benefit Analysis Using Economic Surpluses: A Case Study of a Televised Event," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(2), pages 139-156, May.
    2. Brookshire, David S, et al, 1982. "Valuing Public Goods: A Comparison of Survey and Hedonic Approaches," American Economic Review, American Economic Association, vol. 72(1), pages 165-177, March.
    3. Hans Groot & Evert Pommer, 1987. "Budgetgames and the private and social demand for mixed public goods," Public Choice, Springer, vol. 52(3), pages 257-272, January.
    4. D.A.L. Auld, 1980. "Preference Revelation for Public Goods: an Empirical Analysis," Public Finance Review, , vol. 8(3), pages 277-289, July.
    5. Hockley, G. C. & Harbour, G., 1983. "Revealed preferences between public expenditures and taxation cuts: Public sector choice," Journal of Public Economics, Elsevier, vol. 22(3), pages 387-399, December.
    6. Garber, Alan M., 2000. "Advances in cost-effectiveness analysis of health interventions," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 4, pages 181-221, Elsevier.
    7. James Ferris, 1983. "Demands for public spending: An attitudinal approach," Public Choice, Springer, vol. 40(2), pages 135-154, January.
    8. Franco Papandrea, 1999. "Willingness to Pay for Domestic Television Programming," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(3), pages 147-164, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hans Groot & Evert Pommer, 1989. "The stability of stated preferences for public goods: Evidence from recent budget games," Public Choice, Springer, vol. 60(2), pages 123-132, February.
    2. François Facchini, 1993. "Paysage et économie : la mise en évidence d'une solution de marché," Économie rurale, Programme National Persée, vol. 218(1), pages 12-18.
    3. Kemp, Simon & Willetts, Karyn, 1995. "Rating the value of government-funded services: Comparison of methods," Journal of Economic Psychology, Elsevier, vol. 16(1), pages 1-21, March.
    4. Yamamura, Eiji, 2014. "Time preference and perceptions about government spending and tax: Smokers’ dependence on government support," MPRA Paper 55659, University Library of Munich, Germany.
    5. Hans Groot & Evert Pommer, 1987. "Budgetgames and the private and social demand for mixed public goods," Public Choice, Springer, vol. 52(3), pages 257-272, January.
    6. Arthur Schram & Frans Winden, 1989. "Revealed preferences for public goods: Applying a model of voter behavior," Public Choice, Springer, vol. 60(3), pages 259-282, March.
    7. Kemp, Simon & Willetts, Karyn, 1995. "The value of services supplied by the New Zealand government," Journal of Economic Psychology, Elsevier, vol. 16(1), pages 23-37, March.
    8. Judy A. Temple & Susan Porter‐Hudak, 1995. "Preferences For State Tax And Spending Policies: Evidence From Survey Data On The Role Of Income," Economics and Politics, Wiley Blackwell, vol. 7(1), pages 43-58, March.
    9. Bernd Hayo & Florian Neumeier, 2017. "Public Attitudes toward Fiscal Consolidation: Evidence from a Representative German Population Survey," Kyklos, Wiley Blackwell, vol. 70(1), pages 42-69, February.
    10. Lergetporer, Philipp & Schwerdt, Guido & Werner, Katharina & West, Martin R. & Woessmann, Ludger, 2018. "How information affects support for education spending: Evidence from survey experiments in Germany and the United States," Journal of Public Economics, Elsevier, vol. 167(C), pages 138-157.
    11. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    12. John Loomis & Bryon Allen, 2008. "Using Non Market Valuation to Inform the Choice Between Permits and Fees in Environmental Regulation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(3), pages 329-337, July.
    13. Bernd Süssmuth & Malte Heyne & Wolfgang Maennig, 2010. "Induced Civic Pride and Integration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(2), pages 202-220, April.
    14. Anne-Kathrin LAST, 2008. "The Monetary Value of Cultural Goods: A Contingent Valuation Study of the Municipal Supply of Cultural Goods in Lueneburg, Germany," EcoMod2008 23800074, EcoMod.
    15. Jordan, Jeffrey L. & Elnagheeb, Abdelmoneim H., 1992. "The Structure Of Citizen Preferences For Government Soil Erosion Control Programs," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(2), pages 1-10, December.
    16. Aliza Fleischer & Daniel Felsenstein, 2002. "Cost-Benefit Analysis Using Economic Surpluses: A Case Study of a Televised Event," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(2), pages 139-156, May.
    17. Hoehn, John P. & Randall, Alan, 1985. "Demand Based And Contingent Valuation: An Empirical Comparison," 1985 Annual Meeting, August 4-7, Ames, Iowa 278557, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Smith, Hilary Herbert, 1982. "The demand for and marginal cost of air pollution abatement: an implicit market analysis," ISU General Staff Papers 198201010800009387, Iowa State University, Department of Economics.
    19. David Bardey & Philippe de Donder & Vera Zaporozhets, 2024. "The health technology assessment approach of the economic value of diagnostic tests: a literature review," Working Papers hal-04472485, HAL.
    20. Carmen Herrero & Juan Moreno-Ternero, 2008. "Opportunity analysis of newborn screening programs," Review of Economic Design, Springer;Society for Economic Design, vol. 12(4), pages 259-277, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijsepp:v:38:y:2011:i:3:p:209-217. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.