Introduction to Public Economy

THE ECONOMIC CONTRIBUTION OF WISCONSIN PUBLIC LIBRARIES TO THE ECONOMY OF WISCONSIN University Research Park 510 Charmany Drive Suite 275C Madison, WI 53719 May 1, 2008 The Economic Contribution of Wisconsin Public Libraries______________________________ NorthStar Economics, Inc. 3 TABLE OF CONTENTS Acknowledgments 4 Executive Summary 7 CHAPTER 1: Introduction 13 CHAPTER 2: The Economic Contribution of Public Library Spending to the Wisconsin Economy 17 CHAPTER 3: The Economic Contribution of Public Library Services to the Wisconsin Economy 23 CHAPTER 4: The Return on Investment for Public Library Services in the Wisconsin Economy 31 CHAPTER 5: Public Input: Library Usage Patterns and Value of Library Services 35 CHAPTER 6: SWOT/Gap Analysis and the Relative Value of Libraries in a Knowledge Economy 51 CHAPTER 7: Methodology 65 Bibliography 69 Appendix 1 Survey Questionnaire 71 Appendix 2 Focus Group Schedule and Locations 79 Appendix 3 Handout to Library Directors 81 Appendix 4 Focus Group Interview Script 83 The Economic Contribution of Wisconsin Public Libraries______________________________ NorthStar Economics, Inc. 4 ACKNOWLEDGMENTS This project is made possible by a grant from the U.S. Institute of Museum and Library Services. We would like to thank the Wisconsin Department of Public Instruction (DPI) for commissioning this study. A study such as this requires the coordinated efforts of many people. We very much appreciate the assistance given by DPI, the Wisconsin Public Library System directors, and the directors and staff at public libraries throughout Wisconsin. We would like to thank our steering committee: • John DeBacher - Department of Public Instruction • Michael Cross - Department of Public Instruction • Barbara Dimick - Madison Public Library • Bruce Gay - Milwaukee Public Library • Rick Krumwiede - Outagamie Waupaca Library System • Jessica MacPhail - Racine Public Library • Alan Zimmerman - Department of Public Instruction We would also like to thank the following individuals for their assistance with arranging focus group interview sessions: • Mark Arend, Assistant Director - Winnefox Library System • Douglas Baker, Director - Kenosha County Library System • Bernard Bellin, Director - Lakeshores Library System • Walter Burkhalter, Director - Mid-Wisconsin Federated Library System • Phyllis Davis, Director - South Central Library System • Tana Elias, Web Resources Coordinator - Madison Public Library • Christopher Gawronski, Director - Milwaukee Public Library, Bay View Branch • Mike Gelhausen, Director - Hartford Public Library • Demita Gerber, Director - Monona Public Library • Jim Gingery, Director - Milwaukee Co. Federated Library System • Enid Gruszka, Director - Milwaukee Public Library, Washington Park Branch • Robert Hafeman, Coordinator - Manitowoc-Calumet Library System • Mike Hille, Director - Shawano City-County Library • Bev Kennedy, Director - Pardeeville Public Library • Kathy Klager, Director - Pauline Haass Public Library • Kelly Krieg-Sigman, Director - La Crosse Public Library • Rick Krumwiede - Outagamie Waupaca Library System • Molly Lank-Jones, Director - Sherman & Ruth Weiss Community Library Introduction to Public Economy Introduction to Public Economy By: OpenStaxCollege Domestic Tires? While these tires may all appear similar, some are made in the United States and others are not Those that are not could be subject to a tariff that could cause the cost of all tires to be higher (Credit: modification of work by Jayme del Rosario/Flickr Creative Commons) Chinese Tire Tariffs Do you know where the tires on your car are made? If they were imported, they may be subject to a tariff (a tax on imported goods) that could raise the price of your car What 1/3 Introduction to Public Economy you think about that tariff? Would you write to your representative or your senator about it? Would you start a Facebook or Twitter campaign? Most people are unlikely to fight this kind of tax or even inform themselves about the issue in the first place In The Logic of Collective Action (1965), economist Mancur Olson challenged the popular idea that, in a democracy, the majority view will prevail, and in doing so launched the modern study of public economy, sometimes referred to as public choice, a subtopic of microeconomics In this chapter, we will look at the economics of government policy, why smaller, more organized groups have an incentive to work hard to get certain policies enacted, and why lawmakers ultimately make decisions that may result in bad economic policy Introduction to Public Economy In this chapter, you will learn about: • Voter Participation and Costs of Elections • Special Interest Politics • Flaws in the Democratic System of Government As President Abraham Lincoln famously said in his 1863 Gettysburg Address, democratic governments are supposed to be “of the people, by the people, and for the people.” Can we rely on democratic governments to enact sensible economic policies? After all, they react to voters, not to analyses of demand and supply curves The main focus of an economics course is, naturally enough, to analyze the characteristics of markets and purely economic institutions But political institutions also play a role in allocating society’s scarce resources, and economists have played an active role, along with other social scientists, in analyzing how such political institutions work Other chapters of this book discuss situations in which market forces can sometimes lead to undesirable results: monopoly, imperfect competition, and antitrust policy; negative and positive externalities; poverty and inequality of incomes; failures to provide insurance; and financial markets that may go from boom to bust Many of these chapters suggest that government economic policies could be aimed at addressing these issues However, just as markets can face issues and problems that lead to undesirable outcomes, a democratic system of government can also make mistakes, either by enacting policies that not benefit society as a whole or by failing to enact policies that would have benefited society as a whole This chapter discusses some practical difficulties of democracy from an economic point of view: the actors in the political system are presumed to follow their own self-interest, which is not necessarily the same as the public good For example, many of those who are eligible to vote not, which 2/3 Introduction to Public Economy obviously raises questions about whether a democratic system will reflect everyone’s interests Benefits or costs of government action are sometimes concentrated on small groups, which in some cases may organize and have a disproportionately large impact on politics and in other cases may fail to organize and end up neglected A legislator who worries about support from voters in his or her district may focus on spending projects specific to the district without sufficient concern for whether this spending is in the interest of the nation When more than two choices exist, the principle that the majority of voters should decide may not always make logical sense, because situations can arise where it becomes literally impossible to decide what the “majority” prefers Government may also be slower than private firms to correct its mistakes, because government agencies not face competition or the threat of new entry 3/3 Cisco Systems Copyright © 2001 Cisco Systems, Inc. All Rights Reserved. Page 1 of 9 A Beginner’s Guide to Network Security An Introduction to the Key Security Issues for the E-Business Economy With the explosion of the public Internet and e-commerce, private computers, and computer networks, if not adequately secured, are increasingly vulnerable to damaging attacks. Hackers, viruses, vindictive employees and even human error all represent clear and present dangers to networks. And all computer users, from the most casual Internet surfers to large enterprises, could be affected by network security breaches. However, security breaches can often be easily prevented. How? This guide provides you with a general overview of the most common network security threats and the steps you and your organization can take to protect yourselves from threats and ensure that the data traveling across your networks is safe. Cisco Systems Copyright © 2001 Cisco Systems, Inc. All Rights Reserved. Page 2 of 9 Importance of Security The Internet has undoubtedly become the largest public data network, enabling and facilitating both personal and business communications worldwide. The volume of traffic moving over the Internet, as well as corporate networks, is expanding exponentially every day. More and more communication is taking place via e-mail; mobile workers, telecommuters, and branch offices are using the Internet to remotely connect to their corporate networks; and commercial transactions completed over the Internet, via the World Wide Web, now account for large portions of corporate revenue. While the Internet has transformed and greatly improved the way we do business, this vast network and its associated technologies have opened the door to an increasing number of security threats from which corporations must protect themselves. Although network attacks are presumably more serious when they are inflicted upon businesses that store sensitive data, such as personal medical or financial records, the consequences of attacks on any entity range from mildly inconvenient to completely debilitating—important data can be lost, privacy can be violated, and several hours, or even days, of network downtime can ensue. Despite the costly risks of potential security breaches, the Internet can be one of the safest means by which to conduct business. For example, giving credit card information to a telemarketer over the phone or a waiter in a restaurant can be more risky than submitting the information via a Web site, because electronic commerce transactions are usually protected by security technology. Waiters and telemarketers are not always monitored or trustworthy. Yet the fear of security problems can be just as harmful to businesses as actual security breaches. General fear and suspicion of computers still exists and with that comes a distrust of the Internet. This distrust can limit the business opportunities for companies, especially those that are completely Web based. Thus, companies must enact security policies and instate safeguards that not only are effective, but are also perceived as effective. Organizations must be able to adequately communicate how they plan to protect their customers. In addition to protecting their customers, corporations must protect their employees and partners from security breaches. The Internet, intranets, and extranets enable fast and effective communication Wealth and freedom [...]... commitment, if any, to the system - capitalism - that brings about the expansion of wealth but because we need to know when we have enough and when our quest for wealth might end Needs and wants The multiplication of wants Our early ancestors differed from us not primarily in whether their wants were satisfied but in the kinds of wants they had We want more than they did, and we want differently Our wants develop... form I can understand By psychic resources, I mean the capacity to know what I want and to act on that knowledge Even if I have the legal standing, I might fall 3 They do not always do so Competition between a large number of sellers often leads to market structures - oligopoly and monopoly - that limit consumers' options 26 Wealth and freedom short in capacity and ability, in which case I cannot choose,... Sahlins's description of the household economy bears little resemblance to the world we live in We can hardly imagine satisfying our wants if all we can call on is the work and know-how of ourselves, our spouse, and perhaps a child or two Embedding the economy in the household, then, means radically limiting what we can want and what we can get to satisfy our wants It also means isolating ourselves from the... to walk, dealing with that change in our body demands some change in ourselves We must see ourselves in a wheelchair rather than walking, and this can change our perspective on the world and our place in it As we age, changes in our bodies demand that we change our images of ourselves and the way we live We may continue to have an image of ourselves as young long after we have turned the corner into... exchange? And in order to gain this reward, do we need a statesman to oversee the market and make sure it provides what we need to satisfy our wants? What is the place of economy in the larger fabric of our lives together? 18 Wealth and freedom The use of markets What are markets for? Adam Smith's answer centered on the accumulation of wealth We have markets to enable us individually and as a society to. .. individually and collectively, to assure the conditions needed to sustain our independence of action and initiative Liberty has to do with the opportunities that society affords us to determine who we are and how we will lead our lives Wealth allows us to develop and exercise our autonomy and individuality With enough wealth to support our freedoms, we can take on the burden of responsibility for our lives Political. .. adequate wealth can afford Wealth, of course, may not be enough Birth and connections also count heavily But the less wealth that comes one's way, the more tenuous one's attachment to the aristocracy will be 22 Wealth and freedom Aristocrats need more because having more maintains membership in the aristocracy If we are to organize our society into aristocrats and peasants, we must distribute wealth. .. material means, I have in mind the money required to pay the price The link between choice and freedom thus implies a link between freedom and wealth If I have too little wealth, then I have few if any choices The market only offers choices to those with the means to pay By legal standing, I mean the recognized status of a property owner and independent agent By knowledge, I mean appropriate and accurate... equality and inequality central After exploring the core ideas of political economy concerning the workings of a market economy in Parts I and II, I turn to an investigation of the various arguments regarding equality and inequality Introduction 7 I begin, in Part I, with an exploration of the idea of a self-standing economy International Financial market and Korean Economy Prepared by Seok-Kyun HUR Introduction to Exchange Rates and the Foreign Exchange Market Introduction  Exchange rates affect large flows of international trade by influencing the prices in different currencies  Foreign exchange also facilitates massive flows of international investment, which include direct investments as well as stock and bond trades  In the foreign exchange market, trillions of dollars are traded each day and the economic implications of shifts in the market can be dramatic Introduction The topics we cover today include: • exchange rate basics • basic facts about exchange rate behavior • the foreign exchange market • two key market mechanisms: arbitrage and expectations Exchange Rate Essentials • An exchange rate (E) is the price of some foreign currency expressed in terms of a home (or domestic) currency • Because an exchange rate is the relative price of two currencies, it may be quoted in either of two ways: The number of home currency units that can be exchanged for one unit of foreign currency The number of foreign currency units that can be exchanged for one unit of home currency • Knowing the format in which exchange rates are quoted is essential to avoid confusion, so we now establish a systematic rule, even if it is arbitrary Exchange Rate Essentials Defining the Exchange Rate • To avoid confusion, we must specify which country is the home country and which is foreign • Throughout the remaining chapters of this book, when we refer to a particular country’s exchange rate, we will quote it in terms of units of home currency per units of foreign currency • For example, Denmark’s exchange rate with the Eurozone is quoted as Danish krone per euro (or kr/€) Exchange Rate Essentials Appreciations and Depreciations • If one currency buys more of another currency, we say it has experienced an appreciation – its value has risen, appreciated or strengthened • If a currency buys less of another currency, we say it has experienced a depreciation – its value has fallen, depreciated, or weakened Exchange Rate Essentials Appreciations and Depreciations In U.S terms, the following holds true:  When the U.S exchange rate E$/€ rises, more dollars are needed to buy one euro The price of one euro goes up in dollar terms, and the U.S dollar experiences a depreciation  When the U.S exchange rate E$/€ falls, fewer dollars are needed to buy one euro The price of one euro goes down in dollar terms, and the U.S dollar experiences an appreciation Exchange Rate Essentials Appreciations and Depreciations Similarly, in European terms, the following holds true:  When the Eurozone exchange rate E€/$ rises, the price of one dollar goes up in euro terms and the euro experiences a depreciation  When the Eurozone exchange rate E€/$ falls, the price of one dollar goes down in euro terms and the euro experiences an appreciation Exchange Rate Essentials Appreciations and Depreciations To determine the size of an appreciation or depreciation, we compute the proportional change, as follows: Exchange Rate Essentials Multilateral Exchange Rates To aggregate different trends in bilateral exchange rates into one measure, economists calculate multilateral exchange rate changes for baskets of currencies using trade weights to construct an average of all the bilateral changes for each currency in the basket The resulting measure is called the change in the effective exchange rate Arbitrage and Spot Exchange Rates Arbitrage with Three Currencies • Triangular arbitrage works as follows: you sell dollars in exchange for euros, then immediately sell the same euros in exchange for pounds • In general, three outcomes are again possible The direct trade from dollars to pounds has a better rate: E£/$ > E£/€ E€/$; the indirect trade has a better rate: E£/$ < E£/€ E€/$; or the two trades have the same rate and yield the same result: E£/$ = E£/€ E€/$ Only in the last case are there no profit Introduction to Public Policy (VJ///) Master’s Program in Public Policy, Vietnam Japan University (VJU) Syllabus SYLLABUS: INTRODUCTION TO PUBLIC POLICY 1.Instructors THUY TranThiThanh (Mrs.) Outline of the Course  Public leadership – a dynamic and holistic process of Searching for a way, Showing the way and Making the way to create the future for society for common good, is broadly seen as a crucial mean for development of nation, locality, community and organisation of all types  Leadership developmend mindset or any system and methods have been realised through public policy and policy process  It is undeniable that good policies promote and enable motivation and creativity, participation and contribution and dedication from all forces in the society, working as a fundamental framework to advance the social life and business work, as a driver for change for common good Bad policies, in other way round, hinder the social economic development, leading to conflict, chaos, waste and many types of manluse of power such as red-tape and corruption  This course is designed for those who seek to obtain an overview of Public policy, both in theoretical and empirical terms, providing an initial foundation for an analysis in depth of activities and perspectives of public policy proceess in the following courses of MPP programme Objectives of the Course  Through the combination of various teaching formats of systematically organised lectures, discussions and workshops, learners are expected to grasp broad outline and the essense and issues of public policy and policy process  Through the understanding theoretical and practical aspects of public policy and policy process, learners are expected to broaden their view and knowledge on public policy within a broaders framework of governance and development  Particularly, students are expected to: understand potential relationship between governance, public administration, polictics and public policy; critically grasp key points of knowledge such as the subject of public policy, the essensse of policy process, stake-holders in policy process; factors impacts on the policy process; policy transfer, and 1/6 Introduction to Public Policy (VJ///) Master’s Program in Public Policy, Vietnam Japan University (VJU) Syllabus develop their own constructive views how public policy contributes to the development of country or locality and; preparing the awareness to go in depth to the next courses on each and every stages of policy process later on while takingbearing in mind a comparative perspective to learn from the case of Japan and other public policy systems Suggested Readings See ‘Schedule of the Course’ as below Schedule of the Course 2/6 Introduction to Public Policy (VJ///) Master’s Program in Public Policy, Vietnam Japan University (VJU) Syllabus Class 1: Introduction to the Course ・ Course outline; Assignment; Assessment; Workgroup Theory of Public policy: What is public policy? Topics: ・ What are the mainstream understandings on Public Policy? ・ What is policy/public policy ? ・ What policy differs from laws, Strategy and Development Plans? ・ What are the element of policy structure? Readings: 1- Huges O.E (2003), “The role of Government” in Public management and administration: An Introduction, (third edn.), Palgrave macmillan, Hampshire, pp.71-93 2- Huges O.E (2003), “Public policy and Policy analysis” in Public management and administration: An Introduction (third edn.), Palgrave macmillan, Hampshire, pp.113-131 3- Hill M (2009), The Public Policy Process (Fifth edn.), Pearson Longman, Halow Enland, pp 14-22 The features of public policy Topics: ・ What are the features of public policy ? ・ What public policy differs from private policy? Readings: 1- Guy B P (1996), “Section 1: What is public policy?” In American Public Policy: promise and Performancce (fourth edn.), Cahtham, New Jersey, pp 6-18 Class 2: The role of State, Government in development and Public Policy Topic: - When the ... presumed to follow their own self-interest, which is not necessarily the same as the public good For example, many of those who are eligible to vote not, which 2/3 Introduction to Public Economy. .. groups have an incentive to work hard to get certain policies enacted, and why lawmakers ultimately make decisions that may result in bad economic policy Introduction to Public Economy In this chapter,.. .Introduction to Public Economy you think about that tariff? Would you write to your representative or your senator about it? Would you start a Facebook