This website uses cookies to ensure you have the best experience. Learn more

Budgetary Collective Action Problems: Convergence Essay

459 words - 2 pages

Read the article, “Budgetary Collective Action Problems: Convergence and Compliance under the Mastricht Treaty on European Union”. Be prepared to discuss.

6. Discuss, give examples of, the problem of compliance in budgeting in the United States.

There has been a problem of compliance in budgeting in the United States where political actors and administrators often seek to evade or manipulate budgetary laws and constraints. In the United States, after state governments enacted constitutional balanced budget requirements in the 19th century, politicians and bureaucrats devised special taxing districts, non-guaranteed borrowing, off budget spending, and capital budgets to spend beyond their constitutional limits. Also, in ...view middle of the document...

Moreover, the contagion effect is possible such that if the government is successfully engaged in free riding, its behavior and that of a tolerant ECB would encourage other governments to act similarly. Finally, the fiscal stimulus produced by these deficits might “spill over” and lead to undesirable aggregate demand effects in other member countries.

8. What does the Mastricht Treaty state in Article 104C concerning member country debts? What are some of the problems with its provisions?

The treaty states in article 104c that EMU member countries “shall avoid excessive” deficits and debt, where excessive was defined as no more than 3 percent of Gross Domestic Product (GDP) for budget deficits and no more than 60 percent of GDP for the national debt. These ceilings were not absolute, however, they are considered as “reference values”. The treaty declared that a country might still qualify for membership if the level of deficit and debt as a percent of GDP “has declined substantially and continuously and reached a level that comes close to the reference value”. Some of the problems with its provisions have been separating capital or investment expenditures and debt from the operating budget. Furthermore, such a limitation would cripple anti-cyclical policies during recessions. There have also been measurement problems, multi-year budget targets were ruled out due to their dependence on fiscal estimates rather than actual revenues, expenditures, and debt, and precise deficit targets were objected for greater fiscal flexibility because they ignored broader economic and fiscal dynamics.

Other Essays On Budgetary Collective Action Problems: Convergence

Potential Threat: The New OAS Concept Of Hemispheric Security

2133 words - 9 pages may lead to greater "securitization" of the region's problems, defined as the treatment of these problems as if they were security threats. Securitization carries with it the risk of military responses to problems that are not military in nature and in circumstances where military action is ill-suited or could cause more harm than good, a tendency that is already well under way in Latin America.Risk exists due to 4 main factors:1. Historic tendency

Cultural Diversity Essay

3271 words - 14 pages , nationality and culture working together side by side, this has caused companies to adjust to this unique situation.Hofstede defines culture as "the collective programming of the mind which distinguishes the members of one group or category of people from another" (Hofstede, 1997).Culture is the learned ways of group living and the group's responses to various stimuli. It is also the total way of life and thinking patterns that are passed from

Organizational Management

1054 words - 5 pages experience depends on the willingness of its employees to think about problems, about the opportunity presented to associates to identify and solve common problems together, the willingness to intervene preventively, and the existence of a working atmosphere where every employee feels responsible for the company's performance. In practice, organizations especially seem to learn if employees have a sense of direction through a collective ambition (mission

Management Control System

9915 words - 40 pages ; standardization, rules, formalization) Patriarchal control (Whitley, 1999; personal and informal, centralized control from the top) Action controls (Merchant, 1985b); process controls (manufacturing performance measures), (Chenhall, 1997; direct measures of production processes) Diagnostic controls (Simons, 1995; use of control to provide feedback on operations) R.H. Chenhall / Accounting, Organizations and Society 28 (2003) 127-168 133 Hirst, 1986

Chevron Communication In Business

2374 words - 10 pages reported unusually high cancer rates, along with frequent fevers, gastro-intestinal diseases, stomach aches, skin rashes and respiratory problems. Many of the forest's residents attribute these ailments to petroleum-related contamination (Rochlin 2011, 11). Court reports have shown that 98% of the water samples taken contain chemical toxin levels that violate the country's environmental laws. Texaco's dumping of approximately 18 billion gallons of oil

What Does The Earth-Warming-Up Mean For The Winter-Sport Industrial Economics This Century?

1698 words - 7 pages consequences exposed above are linked to a few decades in the future, these elements are not included in their business strategy. The second element argued relates to the fact that the resorts are unable to change the weather alone. Collective action must be taken in order to observe changes.In conclusion, the sector of the winter-sport is, today, extremely important and profitable for each country that could benefit from it. More and more people are


2241 words - 9 pages , and through the mass media. Women in the movement have a growing understanding of common oppression and the imperative of collective solutions. With the realization that what we saw as personal problems were in fact social ones, we have come to understand that the solutions must also be social ones. With the realization that all women lack control over their lives, we have come to understand that that control can only be gained if we act together

Democratic World Government - An Outline Structure

5396 words - 22 pages offending nation. The result of the vote would dictatewhat collective world action could be taken. The action to be taken might beinitially an economic blockade by all member countries, but ultimately ifthe crisis escalated could become a collective invasion of the offendingcountry. It would be up to the polled populations, acting as a world jury,to decide on behalf of the whole world whether they were going to allow theprinciples of world

Isolationism, Cooperative Security, Selective Engagement Or Primacy ? American Grand Strategy After The Cold War

2083 words - 9 pages . First, whereas collective security favors multilateral mechanisms to achieve these goals, primacy puts unilateral action above coordinated one. Both strategies call for increase in defense spending. However primacy calls for major increases since America's post Cold War engagements in the world affairs will be numerous, while cooperative security seeks modern increases in spending. America's global military engagements are likely to increase but

Business Ethics

7763 words - 32 pages , and apparent negligence by members of its board of directors, many are asking how people believed to be so smart could have lacked the moral courage to seek and tell the truth."1Values, morality, and ethics are used in a variety of loosely connected contexts. Business ethics is idealistic thinking about issues of morality in business, including moral problems and judgments. Business ethics addresses ethical issues that arise in a competitive

Chemistry Social Relevance: Proposed Smoking Bans In South Australia

2616 words - 11 pages are known human carcinogens. Cigarette smoke is classified into two categories; the vapour pahse and the particulate phase. The particulate phase of cigarette smoke is also known as tar:"'Tar' is the collective name for thousands of chemicals...different tars have different chemical make-up, different toxicity and different physical properties."Action on Smoking and Health (ASH), February 2001, 'What goes in? What comes out?, http

Similar Papers

Criminal Justice Trends Essay

2200 words - 9 pages component. What may be a popular idea one moment may change the next. This paper will evaluate past, present, and future trends of corrections within the criminal justice system. Also discussed will be the budgetary and managerial impact that future trends will likely have on all components associated with the criminal justice system.Past Correction TrendsCorrectional facilities, like any other profession continue to change and evolve. When evaluating

Applied Research Essay

5284 words - 22 pages need greater precision. By virtue of operating at high levels of analysis, research often lacks an action orientation and offers limited managerial guidance. Quinn (2000, 86-90) proposed an alternative approach that may foster simultaneously broad and detailed understandings of management. He claimed that researchers might extend contingency studies by examining more general managerial capabilities or styles. Management style denotes an

Public Opinion In California Essay

1731 words - 7 pages recent propositionpropo! sed that "ballot box planning must be brought under control". They als ocommented that public housing was "a drain on local budgetary coffers,compared with commercial development." A local resident reponded to thisarticle charging that the authors would like see the desires of the citizen'sdisregarded and "silenced" whenever the public will went against that of bigbusiness (San Diego Union- Tribune, 2003). Therefore, there

Free Trade Essay

1759 words - 8 pages without incurring any costs themselves) by making certain actors get involved in public problems. Furthermore Kerry claimed that institutions invest U.S. aims with greater legitimacy and this stops global resentment toward the U.S. This claim is especially true when institutions are involved in wars. If several states belong to an institution and they all agree to go to war the world will see this action as more legitimate than if the U.S. takes