The concept of comprehensive income in the economic theory of the state

Автор: Rubinstein Alexander Ya.

Журнал: Economic and Social Changes: Facts, Trends, Forecast @volnc-esc-en

Рубрика: Theoretical and methodological issues

Статья в выпуске: 3 т.14, 2021 года.

Бесплатный доступ

The article presents a concept of the comprehensive income of producers of patronized goods; the concept helped to determine the economic content of the term “budget subsidy”, which in the Russian tradition is unreasonably interpreted as gratuitous aid from a paternalistic state. We substantiate this concept and the economic meaning of budget subsidy on the basis of a modified model of the Wicksell- Lindahl equilibrium as applied to patronized goods, the distinctive feature of which consists in their ability to satisfy the interests of individuals and the government that acts on behalf of society. We prove that such a modification of the equilibrium model is based on the use of the marginal utility theory in relation to the key term in the theory of patronized goods: public interest that is not reduced to individual preferences. Such an interpretation required that the absolutization of the marginalist principle of subjectivism based on “methodological individualism” should be abandoned. The presence of a public interest that is not reduced to individual preferences, and therefore the presence of the social utility function of the paternalistic state, fundamentally changes the content of the equilibrium. This approach resulted in the development of the concept of comprehensive income, which is defined as the sum of income from market sales and budget subsidies, deflated by different price indices. In order to summarize components of comprehensive income, we present our own methodology for constructing a “composite price index”. The normative model for budget subsidy based on the assessment of the social utility of patronized goods is the most important practical result of our work. With regard to its normative nature, the article presents a theoretical substantiation of the three normative conditions and derives the corresponding equations for model calculations of the budget subsidy value, tested on the example of national and municipal theaters using actual departmental statistics for the period from 2009 to 2019.

Еще

Productivity, subsidy, income, paternalistic state, patronized goods, cost disease, comprehensive income, social utility, composite index

Короткий адрес: https://sciup.org/147235415

IDR: 147235415   |   DOI: 10.15838/esc.2021.3.75.2

Список литературы The concept of comprehensive income in the economic theory of the state

  • Rubinstein A.Ya., Gorodetskii A.E., Grinberg R.S. Ekonomicheskaya teoriya gosudarstva: novaya paradigma paternalizma [Economic theory of the state: A new paradigm of paternalism]. Saint Petersburg: Aleteiya, 2020. 424 p.
  • Samuelson P.A. The pure theory of public expenditure. Review of Economics and Statistics, 1954, no. 36, pp. 387–389.
  • Musgrave R.A. The Theory of Public Finance. New York–London, 1959.
  • Rubinstein A.Ya. Rozhdenie teorii. Razgovory s izvestnymi ekonomistami [The Birth of a Theory. Conversations with Well-Known Economists]. Moscow: Ekonomika, 2010. 224 p.
  • Thaler R.H., Sunstein C. Nudge. Arkhitektura vybora [Nudge: Improving Decisions about Health, Wealth, and Happiness]. Moscow: Mann, Ivanov i Ferber, 2018. 240 p.
  • Grinberg R.S., Rubinstein A.Ya. Ekonomicheskaya sotsiodinamika [Economic Sociodynamics]. Moscow, ISE-PRESS, 2000. 276 p.
  • Grinberg R.S., Rubinstein A.Ya. Individuum & Gosudarstvo: ekonomicheskaya dilemma [The Individual & the State: An Economic Dilemma]. Moscow: Ves' mir, 2013. 480 p.
  • Baumol W.J., Bowen W.G. Performing Arts: The Economic Dilemma. A study of Problems common to Theatre, Opera, Music and Dance. New York: Twentieth Century Fund, 1966.
  • Globerman S., Book S.H. Statistical cost function’s for performing arts organisations. Southern Economic Journal, 1974, no. 40 (April).
  • Schwarz S., Greenfield H.J. The facts first: A reply to Baumol and Baumol. Journal of Cultural Economics, 1981, vol. 5 (2) (December), pp. 85–87.
  • Heilbrun J. “Baumol’s cost disease”. In: A Handbook of Cultural Economics. 2003. Pp. 91–101.
  • Ginsburgh A., Throsby D. (Eds.). Handbook on the Economics of Art and Culture. North-Holland, 2006.
  • Neck R., Getzner M. Austrian government expenditures: “Wagner’s Law” or “Baumol’s Disease”? International Business & Economics Research Journal (IBER), 2007, vol. 6, no. 11, pp. 49–66.
  • Nordhaus W. Baumol’s diseases: A macroeconomic perspective, contributions to macroeconomics. Berkeley Electronic Press, 2008, vol. 8 (1).
  • Rubinstein A.Ya. Opekaemye blaga v sfere kul'tury: priznaki i posled-stviya “bolezni tsen” [Patronized goods in the sphere of culture: Signs and implications of the “cost disease”]. Moscow: Institut ekonomiki RAN, 2012. 78 p.
  • Burakov N.A., Slavinskaya O.A. State paternalism and the econometric model of budget support of the theater. In: Ekonometricheskie modeli elastichnosti sprosa na teatral'nye uslugi: nauchnye doklady [Econometric models of elasticity of demand for theater services: scientific reports]. Moscow: Institut ekonomiki RAN, 2017. Pp. 31–53 (in Russian).
  • Baumol W. Macroeconomics of unbalanced growth: The anatomy of urban crisis. American Economic Review, 1967, January, pp. 415–426.
  • Rubinstein A.Ya. Ekonomika obshchestvennykh preferentsii [The economics of public preferences]. Saint Petersburg: Aleteiya, 2008. 560 p.
  • Rubinstein A.Ya. Teoriya opekaemykh blag [The theory of patronized goods]. Saint Petersburg: Aleteiya, 2018. 305 p.
  • Lindahl E. Die Gerechtigkeit der Besteuerung. Eine Analyse der Steuerprinzipien auf Grundlage der Grenznutzentheorie. Translated by E. Henderson as: Just Taxation – a Positive Solution, 1919. In: Musgrave R.A., Peacock A.T. (Eds.). Classics in the Theory of Public Finance. London: MacMillan, 1958, 4th Impression 1967. Pp. 168–176.
  • Rubinstein A.Ya. Kul'turnaya deyatel'nost' v kontekste. Ekonomicheskaya teoriya, institutsional'naya sreda, sotsiologicheskie izmereniya [Cultural Activity in the Context. Economic Theory, Institutional Environment, Sociological Measurements]. Saint Petersburg: Aleteiya, 2019. 1072 p.
  • Rubinstein A.Ya. “An imaginary patient” or what should be the financing of patronized goods. Ekonomicheskii zhurnal Vysshei shkoly ekonomiki=HSE Economic Journal, 2020, vol. 24, no. 3, pp. 434–464 (in Russian).
  • Solow R. Technical change and the aggregate production function. The Review of Economics and Statistics, 1957, vol. 39, no. 3, pp. 312–320.
  • Mankiw N.G., Romer D., Weil D.N. A Contribution to the Empirics of Economic Growth. NBER Working Papers 3541, National Bureau of Economic Research, Inc. 1990.
  • Corrado C., Hulten Ch., Sichel D. Measuring capital and technology. In: Corrado C., Haltiwanger J., Sichel D. (Eds.). Measuring Capital in the New Economy, Studies in Income and Wealth. Chicago: The University of Chicago Press, 2005. Vol. 65. Pp. 11–14.
  • Soloveichik R. Theatrical Movies as Capital Assets. Manuscript. 2013.
  • Adarov A., Stehrer R. Tangible and Intangible Assets in the Growth Performance of the EU, Japan, and the US. Wiener Institut für Internationale Wirtschaftsvergleiche (WIIW), research report 442, 2019.
  • Kapelyushnikov R.I. Productivity and remuneration in the field of art: an alternative interpretation. In: Ekonomika kul'tury: novyi rakurs starykh problem [The economics of culture: A new perspective of old problems]. Moscow, 2013.
  • Baumol W. Performing Arts. In: Eatwell J., Milgate M., Newman P. The New Palgrave: A Dictionary of Economics. Macmillan, 1987.
  • Soloveichik R. Artistic originals as a capital asset. American Economic Review, 2010, vol. 100 (5) (May), pp. 110–114.
Еще
Статья научная