Comparative Statical Displacements of Equilibrium
Having analyzed the forces that operate to determine the equilibrium supply of and demand for public policies in the last chapter, I will now examine how the public sector adjusts to external disturbances. It will be recalled that in previous discussions and especially in chapter 2 a large number of public policies were examined and were shown to be analyzable within one broad frame of reference. As a consequence, it will be sufficient if, in this chapter, I arbitrarily select two cases to examine the various possible disturbances to which the system may be subjected and to illustrate how the model works.
KeywordsPublic Sector External Disturbance Political Participation Labor Income Opposition Party
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