On State Investments in the Humanitarian Sector of Economy

Alexander Rubinstein

Journal of the New Economic Association, 2019, vol. 41, issue 1, 225-233

Abstract: A theoretical and methodological substantiation of a fundamentally new approach and the corresponding method of determining the volume of public investment to producers of patronized goods in the humanitarian sector are presented. It is based on an assessment of the income deficit of these organizations, taking into consideration the objective economic laws that determine the conditions of their activities, and social norms, established by the state. As social norms, the level of purchasing power of consumers of patronized goods (through the mechanism of prices for these goods and services) and workers of organizations of the humanitarian sector of the economy (through the mechanism of payment for their labor) are considered. Testing of the proposed model showed that the amount of actual budget subsidies to organizations of the humanitarian sector turned out to be significantly lower than their model value and was clearly insufficient, thereby causing undesirable processes of commercialization, accompanied by a superinflationary increase in prices for patronized goods and by. a decrease in their availability for the population.

Keywords: patronized goods; investments; human capital; "cost disease""; lag in labor productivity; regulatory costs; income deficit; subsidy; price indices (search for similar items in EconPapers)
JEL-codes: C43 L38 Z1 Z11 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econorus.org/repec/journl/2019-41-225-233r.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2019:i:41:p:225-233

Access Statistics for this article

Journal of the New Economic Association is currently edited by Victor Polterovich and Aleksandr Rubinshtein

More articles in Journal of the New Economic Association from New Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Alexey Tcharykov ().