Public expenditure

Regarding public expenditures, the implementation of Hartz IV in 2005 led to higher rather than lower public expenditure and to an increase rather than a 

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Public Expenditure on Pharmaceuticals in Spain Description, Data... 

A simple but interesting simulation of the potential saving in public expenditure due to generics, a summary of recent regulatory measures and some data on concentration, prices and expenditure are the main contributions of the text by Segura.49... 

Samuelson, Paul A. 1954. The Pure Theory of Public Expenditure. Review cf Economics and Statistics 36 386-89. 

Sir Richard Clarke to Sir Leslie Rowan, 21 Jan. 1965, and Clarke to Sir William Armstrong, Insight on defence costs , n.d., CLRK 1/3/4/1, Churchill College, Cambridge. In addition to The Economics of Defense in the Nuclear Age (Cambridge, Mass. Harvard University Press, 1960), Clarke also recommended McKean s useful essay , Cost-benefit analysis and British defence policy , in Alan Peacock and D.J. Robertson (eds.). Public Expenditure Appraisal and Control (Edinburgh Oliver and Boyd, 1963), pp. 17-35. 

Parliamentary Debates, 4th series, 1906, vol. 156, col. 290. For political economy and public finance, see G. C. Peden, From cheap government to efficient government the political economy of public expenditure in the United Kingdom, 1832-1914 , in Donald Winch and Patrick O Brien (eds.). The Politieal Eeonomy of British Historieal Experienee, 1688-1914 (Oxford University Press, 2002), pp. 351-78. 

McKean, Roland N., Cost-benefit analysis and British defence expenditure , in Alan Peacock and D. J. Robertson (eds.). Public Expenditure Appraisal and Control, Edinburgh Oliver and Boyd, 1963, pp. 17-35. 

This includes expenditure on both the supply and the demand side. Drug related expenditure amounted to 68 in the UK or 0.35 per cent of GDP, more than twice the EU average (0.15 per cent). Higher levels have been only reported by the Netherlands ( 139 per capita or 0.66 per cent of GDP) and Sweden ( 107 per capita or 0.47 per cent of GDP. (See EMCDDA, Public Expenditure on Drugs in the European Union, 2000-2004). 

In 1996, total health care expenditure in the United Kingdom was approximately 7.0% of the GDP. Public expenditure by the National Health Service (NHS) accounts for most of the health care costs. The NHS was set up after World War II, with the aim of unifying health care services by voluntary and local hospitals. The NHS offers free health services to all U.K. residents, funded through general taxation. 

Supply-side subsidies, which cover some or all of the costs of health services inputs (infrastructure, staff, drugs, equipment, nonmedical consumables), provide litde incentive to attract patients or increase productivity. As a result, despite relatively low wages, publicly operated services have remarkably high unit costs, and utilization rates are often low. The absence of targeting (restricting benefits to a certain subset of the population) gready dilutes the impact of public expenditure on health care. Middle-class people pay less than they can afford, while the poor often pay more. 

In the UK, annual expenditure on the National Health Service (NHS) is largely determined by government during public expenditure negotiations. Until recently, there has tended to be an implicit belief that this money (or the resources that this money could command) should be used to meet all health needs. Words such as rationing were avoided at all costs in official documents. 

Zanoli, R. and D. Gambelli (1999). Output and Public Expenditure Implications of the Development of Organic Farming in Europe . In Organic Farming in Europe Economics and... 

This policy shift can build upon new or already existing, but dormant provisions in unemployment and social assistance schemes and related objectives. Activation tips the balance in favour of a more active and inclusive rather than passive and exclusive approach. Hence, activation means stronger intervention in spells of unemployment or inactivity periods and fewer acceptances of long-term benefit dependency and associated public expenditure. Traditional social policies are seen as part of the problem, less as a solution. In particular, transfer payments are perceived as having detrimental side-effects on individual employability and the overall performance of the labour market (Van Berkel and Homemann Moller 2002). 

Evidence on outcomes of activation in terms of labour market integration, benefit dependency, and public expenditure. 

Regarding the cost implications, activation policies are costly both in terms of administration and programme costs. Country evidence does not show major cuts in public expenditure if all benefit schemes, active labour market policies, administration expenses and additional tax measures are taken into account. Comparative data, however, show that resources spent on active and passive labour market policies in OECD countries is especially high in Denmark, the Netherlands and Germany (Fig. 28). 

Fig. 28. Public expenditure on active and passive labour market policies in percent of GDP, 2005...

Perhaps the most striking statistic is that between 1960 (before Medicare and Medicaid) and 1998, public expenditure per capita on health care increased more than 100-fold, from 35 to 3,633. ... 

Public Expenditure on Pharmaceuticals as a part of total expenditure on Pharmaceuticals... 

Fig. 1. Public expenditure as part of total pharmaceutical expenditures, 1999. Source OECD data.

Table 1. Uptake, public expenditure and average payments for organic farming schemes under EC Reg. 2078/92 compared to all agri-environment options... 

Country Land area (ha) Farms xlOOO Public expenditure (MECU) Lowest conversion payment Highest conversion payment Average (conversion and continuing)... 

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