Economic Crisis and the New Paradigm of Public Support of the Patronized Goods

Alexander Rubinstein

Journal of the New Economic Association, 2015, vol. 26, issue 2, 264-269

Abstract: In this paper, we propose a new model of economic regulation of the patronized goods in the humanitarian sector of the economy, aimed at increasing the sustainability of the financial position of organizations of culture, science, and education and at reduction of their dependence on conjunctural, or opportunistic, decisions of the economic departments. The basis of this model is composed of three mechanisms of public support: 1) a system of financial performance standards that characterizes a minimum share of budget expenditures on the production of the appropriate types of patronized goods, reflecting state commitments to their accessibility for the population and the remuneration of labor of workers of culture, science and education; 2) the institution of individual budget appropriations which implements the right of citizens' participation in the selection of areas, or directions of spending a limited part of state income tax; 3) a system of endowment funds, allowing to accumulate receipts from the individual budget appropriations and labeled taxes, in order to extract the increasing investment income from the target capital, or the endowment, which is an additional source of financial support for the patronized goods in the humanitarian sector of the economy.

Keywords: patronized goods; public support; budgetary regulations; the institution of individual budget appropriations; endowment funds; labeled taxes (search for similar items in EconPapers)
JEL-codes: H80 I20 I22 Z11 Z18 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2015:i:26:p:264-269

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