Category: Economics

Sense prevails on public services?

[Originally posted on Liberal Democrat Voice, 08/05/11] The reports this week were that the Government is planning to scale back its proposals for outsourcing public services. A significant policy shift means that the delayed Open Public Services White paper will not feature proposals for “wholesale outsourcing” to the […]

On bankruptcy constraints, soft and hard

One strand of the economic critique of government provision is that public providers face a soft bankruptcy constraint. If they operate inefficiently or extravagantly and run out of money then they can turn to government for a handout to cover any shortfall. If the government is short of […]

Upstairs at Eric’s – What’s on the big guy’s mind?

Earlier this month Communities and Local Government launched what they describe as an ‘informal consultation exercise’ reviewing the statutory duties placed on local government.  It’s aiming to gather views on the full range of statutory duties with a view to identifying any that are no longer appropriate or […]

Economic liberalism and public service reform

[Originally posted on Liberal Democrat Voice, 22/02/11, and ranked most read post of the week] Are the Liberal Democrats a party of untrammelled ideology – sorry,“principles” – or do ethics and evidence also play a role in thinking? This question struck me forcefully when reading David Cameron’s article […]

Economists, implicated

John Maynard Keynes famously wrote that “[i]f economists could manage to get themselves thought of as humble, competent people on a level with dentists, that would be splendid”. Many economists, somewhat uncharacteristically, might well be craving that type of anonymity at the moment. Because they’ve been getting a […]

Clegg’s curate’s egg of a speech

We all know about the cuts. And the claims that getting the public finances in order will act as a spur to a revival of private sector economic activity. We’re all – quite possibly including the Government – less clear on exactly how that revival is supposed to […]

Housing demand – a role for status concerns?

Housing is a complex commodity. Economists think about the demand for housing as having both a consumption and an investment component. Trying to integrate the two components is a challenge. But is this approach sufficient? Economists differ in their views on the success of conventional approaches to understanding […]