Question: The Budget Enforcement Act BEA of 1990 created a pay as you go
The Budget Enforcement Act (BEA) of 1990 created a pay-as-you-go (PAYGO) system prohibiting any policy changes which increased the estimated deficit in any year in the subsequent six-year period. Another type of possible PAYGO system would prohibit any policy changes which increase the present value of the deficit over the entire six-year period. Discuss the relative advantages and disadvantages of these “annual” and “cumulative” PAYGO systems.
Answer to relevant QuestionsPeterson, Hoofer, and Milner (1995) showed that air bag use has led to increases incur crashes. Despite this finding, the government mandates that new cars have airbags, rather than taxing their use. Is this policy a ...Why do governments sometimes impose quantity regulations that limit the level of negative-externality-inducing consumption? Why do governments sometimes impose price regulations by taxing this consumption? One hundred commuters need to use a strip of highway to get to work. They all drive alone and prefer to drive big cars—it gives them more prestige and makes them feel safer. Bigger cars cost more per mile to operate, since ...Some observers argue that since carbon dioxide (CO2) and temperature levels have been much higher in Earth’s history than they are today, the current concerns about the human contribution to global warming are overblown. ...We add the demands of private goods horizontally but add the demands of public goods vertically when determining the associated marginal benefit to society. Why do we do this and why are the procedures different for public ...
Post your question